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Law Office of James D. Lynch, PLLC

3000 Joe Dimaggio Blvd #90, Round Rock, TX 78665

info@jimlynchlaw.com

(512) 745-6347

(714) 745-3875

©2020 by Law Office of James D. Lynch, PLLC. The information contained in this website is for informational purposes and is not to be considered legal advice.  Any correspondence between you and the Law Office of James D. Lynch is not intended to create an attorney-client relationship.  Please do not send confidential information to us until after an attorney-client relationship has been established by an engagement letter signed by the proposed client and our attorney.

  • James D. Lynch

HOW OFTEN MUST YOU DEPOSIT PAYROLL TAXES?

If you are an employer, the IRS has various different schedules for determining when you deposit the Social Security taxes, Medicare taxes, and federal income taxes that you withhold from your employees' paychecks.


● QUARTERLY: If your tax liability for the current quarter is less than $2500, or your tax liability for the previous quarter was less than $2500, and you didn't incur a $100,000 next-day deposit obligation during the current quarter, you may remit your payroll taxes quarterly together with your timely filed Form 941.


● MONTHLY: If your tax liability is more than $2500 for the quarter but less than $50,000 for the year, you must deposit your payroll taxes on the 15th of each month following the month the wages/salaries were paid. For example, taxes withheld from employee paychecks in January must be remitted to the IRS by February 15th.


● SEMIWEEKLY: Once your payroll tax liability starts to exceed $50,000 per year, the IRS will send you a letter stating that you are now a semiweekly depositor. In general, you deposit employment taxes for payments made on Wednesday, Thursday, or Friday by the following Wednesday,and you deposit taxes for payments made on Saturday, Sunday, Monday, or Tuesday by the following Friday. You must stay on the semiweekly deposit schedule, even if your tax liability drops below $50,000 per year, until the IRS notifies you otherwise.


● NEXT DAY: When any single payroll has a payroll tax liability that exceeds $100,000, you must deposit the tax by the next banking day.


Note that the above deposit schedules do not affect your filing frequency. Form 941 is due quarterly, regardless of your deposit schedule.