CP136 tells an employer which federal tax deposit schedule to use for Form 941 next year. Your deposit requirement may be different from last year's. The IRS bases it on the total tax you reported on Forms 941 for the four previous consecutive quarters, called the lookback period.

This is an informational notice about deposit rules. It doesn't charge or remove a penalty.

Monthly or Semi-Weekly

  • $50,000 or less in the lookback period: you're a monthly depositor. Deposit taxes on wages paid during a month by the 15th of the following month.
  • Over $50,000: you're a semi-weekly depositor. Taxes on wages paid Saturday, Sunday, Monday, or Tuesday are due the following Friday. Taxes on wages paid Wednesday, Thursday, or Friday are due the following Wednesday.

Check the Numbers

Compare the liability on the notice with your records. The IRS uses only the tax on your original Forms 941 for the lookback period. Don't include amended returns. If the IRS's amounts differ from your records, determine the right deposit schedule yourself.

If the notice shows zero for a quarter, the IRS has no record of receiving Form 941 for that period. File any missing Form 941 as soon as possible.

The $100,000 Rule

If your accumulated tax liability reaches $100,000, you must deposit by the next business day. Once that happens, you immediately become a semi-weekly depositor for the rest of the current year and the next year.

Reporting on Form 941

You don't show your payments on Form 941. The IRS already has them. Show only your tax liabilities. Monthly depositors enter the tax for each month in Part 2 of Form 941. Semi-weekly depositors use Schedule B (Form 941) for each date employees were paid.

Electronic Deposits

Deposits must be made electronically unless your tax liability is less than $2,500, or the tax for the prior period was less than $2,500 and you didn't have a $100,000 next-day liability. If your tax for the quarter is under $2,500, you can pay with the Form 941 payment voucher.

Tell your payroll provider the correct schedule before the first payroll of the year. Publication 15 and Notice 931 have the full rules.

If your business is behind on payroll deposits, call us at (813) 229-7100.