To whom should federal income tax withheld, as well as social security and Medicare taxes, be sent?

The correct response is that federal income tax withheld, as well as social security and Medicare taxes, should be sent to the Internal Revenue Service (IRS). This is because the IRS is the federal agency responsible for collecting these taxes and overseeing the administration of the federal tax system.

When employers withhold income tax along with social security and Medicare taxes from their employees’ paychecks, they are required to deposit these amounts with the IRS at scheduled intervals, depending on the total amount of tax withheld. Proper submission ensures compliance with federal tax laws and avoids penalties associated with late or incorrect payments.

In contrast, the other choices are not the appropriate recipients for these specific tax remittances. State Revenue Departments handle state tax collections, whereas an authorized financial institution or the Federal Reserve Bank does not collect taxes directly from employers. A Payroll Processing Company typically manages the payroll and tax calculations but does not serve as the final authority to whom taxes are remitted. Therefore, only the IRS is the correct entity for sending federal withholding and payroll taxes.