First you need to obtain a Federal ID number. In Virginia, we withold for FICA, Federal Income Tax and State Income Tax. This money must be deposited with the proper form to the Feds on a regular basis, probably monthly for you. Remember that the FICA is matched by the employer and this is not optional. Do ask for professional help locally to get you started properly. The math and the forms are fairly simple, so it isn't hard to file, unless you don't have the money in the ol' bank account. Don't fall behind on this payment. The gov't won't let you slide on this obligation regardless of anything.