What is the deadline for a contractor to deposit withheld federal taxes?

The correct response is based on the requirements set forth by the IRS regarding the timely deposit of withheld federal taxes for contractors. When contractors withhold federal income tax from their employees' wages, they are required to deposit these amounts according to a specific schedule.

The 15th of the following month is the deadline for those who are on a monthly deposit schedule. This means that any federal taxes withheld during a calendar month must be deposited by the 15th of the following month. Therefore, if a contractor withholds taxes in January, those taxes must be deposited by February 15th.

This rule applies to employers with lower tax liabilities, who are allowed to make deposits monthly rather than more frequently. Understanding this timeline is crucial for compliance and avoiding any penalties associated with late deposits. The other options reflect different deposit schedules or misunderstandings of the deadlines, but the monthly obligation aligns specifically with the 15th of the following month for basic compliance.