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Payroll Tax Deposits

business client accounting manual client onboarding Jul 26, 2021

Deposit Schedules

Monthly Deposit Schedule:
If you are a monthly depositor, payroll taxes must be deposited by the 15th day of the following month. For example, payroll taxes for the month ending July 31, 20xx are due on August 15, 20xx. Should the 15th day of the month fall on a weekend or bank holiday, the deposit will be considered timely if made by the close of the next banking day.

Semi-weekly Deposit Schedule:
Semi-weekly depositors will make payroll tax deposits based on the day their employees are paid. For paydays falling on Wednesday, Thursday and Friday, payroll tax deposits are due the following Wednesday. For paydays falling on Saturday, Sunday, Monday, or Tuesday, payroll tax deposits are due on Friday.

Should the due date fall on a bank holiday, the deposit will be considered timely if made by the end of the next banking day. In addition, you have at least three banking days from the end of a semi-weekly period to make a deposit. If a bank holiday falls during the three days after the end of the semi-weekly period, you will have on additional banking day to deposit. For example, your employees are paid on Friday and Monday is a bank holiday. Your deposit is not due until Thursday. This allows three banking days to make the deposit. However, if your payday is on Thursday and Monday is a banking holiday, your deposit will be due on its normal day, Wednesday.

$100,000 Next-day Deposit Rule

If you accumulate a tax liability of $100,000 or more on any single day during a deposit period, you must deposit the appropriate tax by the next banking day. This is a requirement regardless of what deposit schedule you normally use.

In addition, if you are a monthly depositor and accumulate a $100,000 tax liability on any day during a month, you automatically become a semi-weekly depositor on the next day. You will remain a semi-weekly depositor for the remainder of the current year and also for the following year.

Note: If you are on our tax pay service, we will pay all of your taxes and you will not need to worry about depositing rules.

How Do I Make a Payroll Tax Deposit?

Electronic Deposit Requirements
All deposits must be made electronically through the EFTPS system. To enroll in EFTPS, call 1-800-555-4477 or visit the IRS website:

Deposits made electronically must be initiated at least one business day in advance of the due date. Deposits initiated on the day they are due are considered late.

Note: If you are on our tax pay service we will pay all of your taxes and you will not have to worry about making tax deposits.

If you want to improve your business situation, get assistance now. Schedule your free consultation today or give us a call at (218) 491-4002. We're here to help!

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