Payroll Taxes, Monthly Deposit Schedule Vs. Semi-weekly Deposit Schedule

Payroll Taxes, Monthly Deposit Schedule Vs. Semi-weekly Deposit Schedule

Payroll taxes are those filed by employers. In order to file payroll taxes, employers must account for amounts withheld from each paycheck paid to employees. Employers are required to make deposits of taxes withheld from paychecks as well as report such as taxes and deposits made.

Payroll taxes include the federal income taxes withheld from employees, as well as FICA taxes covering Social Security, Medicare and the matching amount to be paid by the company, and federal unemployment taxes which are based on the total gross payroll.

The two deposit schedules for payroll taxes are monthly and semi-monthly. Employers must determine at the beginning of each calendar year which of these two they are required use.

Payroll Tax Deposit Schedules

Your payroll tax deposit schedule is set by the IRS and is based on the look-back period or the 12 month period that ends on the most recent June 30. For example, if you are submitting employment tax deposits in 2017, your look-back period would be the 12-month period  that ended in June 2016. However, for new employers and those who did not have workers to pay during this 12-month period, you pay taxes on a monthly schedule. This also applies if your payroll taxes for this period amounted to $50,000 or less. Monthly deposits are made on the 15th day of the next  month. If you paid payrolls on March, you deposit taxes on April 15th.

If your payroll tax obligations during this period exceeds $50,000  you pay on a semi-weekly schedule. If you paid payrolls on Saturday, Sunday, Monday or Tuesday, you deposit the taxes the following Friday. For payrolls paid on the rest of the days, you deposit taxes on Wednesday. If your payroll taxes amounted to less than $2,500 you can deposit your taxes using a 'timely filed return.'

Other Schedules

If you payroll tax obligations exceed $100,000 you need to deposit on the next day. You are obliged to make next day deposits for the rest  of the year and the year after that. Deposits that should be made on a day other than a banking day and paid by the close of the next banking day are considered filed on time. Sunday, Saturday and federal and state bank holidays are considered non-banking days.

You can refer to the Employment Tax Due Dates page on the IRS website to get a complete list of tax due dates for various sectors and their corresponding forms, which are also available for download on the site.

Making the Deposit

The IRS requires all payments to be made using the EFTPS Online System. Employers can register at the EFTPS website. This system deducts the amount owed to the IRS directly from the linked bank account provided by the employer. This electronic system ensures timely deposits and disallows the mailing of deposits using deposit coupons.

It is important to know what tax deposit schedule you are required by the government to use. Ensure that your accounting is thorough and your payroll taxes are filed on time by working with a professional tax and accounting team. Get in touch with us to know more about how we can help you.

Contact Member