When are payroll taxes due to the IRS?
The due date depends on how much you owe. The IRS assigns employers to either a monthly or semi-weekly deposit schedule based on your total tax liability during a lookback period.
Most small businesses are monthly depositors. If your total payroll tax liability during the lookback period was $50,000 or less, you deposit monthly. The lookback period runs from July 1 through June 30 of the previous year and determines your deposit schedule for the current calendar year. Monthly depositors must pay by the 15th of the month following the payroll. Pay employees in October, deposit by November 15. If the 15th falls on a weekend or holiday, the deadline moves to the next business day.
Semi-weekly depositors have a tighter window. If your lookback period liability exceeded $50,000, you’re on this schedule. For paydays falling Wednesday through Friday, deposits are due the following Wednesday. For paydays falling Saturday through Tuesday, deposits are due the following Friday. There’s also a same-day deposit rule. If you accumulate $100,000 or more in tax liability on any day during a deposit period, you must deposit by the next business day.
Form 941 is a separate requirement. This quarterly form reports wages, tips, and payroll taxes. It’s due the last day of the month following each quarter: April 30, July 31, October 31, and January 31. The form reports what you already deposited, not an additional payment, unless you owe a balance.
FUTA works differently. Federal unemployment tax is reported annually on Form 940, due January 31. But if your FUTA liability exceeds $500 during a quarter, you must deposit by the last day of the month following that quarter.
All federal payroll deposits must go through EFTPS, the Electronic Federal Tax Payment System. Paper checks aren’t accepted for payroll taxes. Getting enrolled in EFTPS before your first deposit deadline is important since the registration process takes a few days.
Missing a deposit triggers penalties starting at 2% for deposits made 1-5 days late and escalating to 15% for amounts still unpaid 10 days after an IRS notice. Interest accrues on top of penalties. Businesses using payroll services typically avoid these issues because deposits are handled automatically as part of each pay run.
If tracking deposit schedules and quarterly filings feels like one more thing competing for your attention, you’re not alone. Many small business owners across Greater Richmond offload this to bookkeeping services in Richmond so they can focus on running their business instead of watching calendars.
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