Federal Payroll Deposit Schedules

IRS, Federal Payroll Deposit Schedule, Bookkeeping, Small BusinessThe IRS has very specific rules for payroll tax deposits. This schedule is determined by the amount of tax reported on form 941 during the four quarter look back period. The dates of the look back period are July 1 to June 30. If you reported over $50,000 in payroll taxes, the deposit schedule is semi-weekly, $50,000 or less is a monthly deposit schedule.

For monthly tax deposits, payments are due on the 15th of the month following the month the liability was incurred. However, if you are an employer accruing less than a $2500 tax liability in the quarter, taxes may be remitted by the last day of the month following the quarter end.

Under the semiweekly deposit schedule, deposit employment taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Deposit taxes for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday.

Employment taxes must be deposited by electronic funds transfer (unless a quarterly filer). Penalties may apply if you do not make required deposits on time or if you make deposits for less than the required amount. For amounts not properly or timely deposited, the penalty rates are as follows:

  • 2% – deposits made 1-5 days late
  • 5% – deposits made 6-15 days late
  • 10% – deposits made 16 or more days late
  • 10% – deposits made directly to the IRS with payroll return (unless quarterly payments are allowed)
  • 15% – amounts still unpaid more than 10 days after the date of the first notice the IRS sent asking for the tax due.

Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability.
If you are unsure of how much or when to pay, contact us at 310-534-5577 or contact@abandp.com or your current bookkeeper for assistance.