What This Notice Means
This is a reminder. You're a semiweekly depositor and must make federal tax deposits on that schedule. Semiweekly depositors deposit the Wednesday or Friday after their payroll date.
What to Do
Follow the semiweekly deposit schedule. That's required.
- Taxes for wages paid Wednesday through Friday are due the following Wednesday.
- Taxes for wages paid Saturday through Tuesday are due the following Friday.
If you didn't pay employees for part of the period, such as the first weeks of January, deposit on the semiweekly schedule whenever you do have taxes due.
The $100,000 Rule
If you owe $100,000 or more at any time during a semiweekly period, you must make an electronic deposit by the next business day.
The $2,500 Rule
You can pay your liability with a timely filed Form 941 if both of these are true:
- Your total tax liability for the current or previous quarter was less than $2,500.
- You didn't have a $100,000 next-day deposit obligation during the current quarter.
If you aren't sure you qualify, deposit on the semiweekly schedule. That avoids failure to deposit penalties.
How Your Schedule Is Set
The IRS uses a lookback period. For Form 941, that's the four quarters that ended June 30 of the prior year. For annual forms, it's the year before last. If your total tax for that period was more than $50,000, you deposit semiweekly. If it was $50,000 or less, you deposit monthly.
Staying on Track
- Review the lookback period every October to set next year's schedule.
- Set reminders so you don't miss a due date.
- Make sure your payroll provider has the right schedule.
Publication 15, (Circular E), Employer's Tax Guide, has the full rules.
If you've fallen behind on payroll deposits, call us at (813) 229-7100.