Federal Employer Payroll Tax Payment Deadlines - Form 941
While Circular E states "there are two deposit schedules
," at least four different payment deadlines exist for federal employer taxes. The primary theme with the deadlines is larger tax balances have tighter deadlines. Employers with larger tax balances must pay sooner than employers with smaller tax balances.
Payment is due the banking day after payroll.
Next-Day Deposit Rule
When federal employer taxes for a single day exceed $100,000, the taxes must be paid by the next banking day.
Payment is due a few days after payroll.
Semiweekly Deposit Schedule
For employers with taxes exceeding $50,000 for the annual lookback period. Refer to Circular E for lookback period calculations.
If payday falls on Wednesday, Thursday, and/or Friday taxes are due by the following Wednesday.
If payday falls on Saturday, Sunday, Monday, and/or Tuesday taxes are due by the following Friday.
Payment is due by the 15th of the following month.
Monthly Deposit Schedule
For employers with taxes under $50,000 for the annual lookback period. Refer to Circular E for lookback period calculations.
Taxes are due by the 15th of the following month.
Payment is due quarterly when 941 is filed.
Payment with Return Schedule (941)
If payroll taxes were under $2,500 for either the current or the preceding quarter, the taxes can be paid with the Form 941.
Making Payments
Most employers are now required to pay federal employment taxes through the Electronic Federal Tax Payment System (
EFTPS). Paying taxes through EFTPS saves a trip to the bank and provides an online history of tax payments. Business owners should periodically login to confirm tax payments are being received by the IRS.
Sources of Big Penalties
Growing payroll taxes shifts employer to stricter payment schedule. Closely monitor the payroll tax deadlines and do not rely on an IRS notice to inform you of a required change.
Bonus payments can trigger next day deposit schedules.
Irregular payroll and substantial additional withholding amounts can trigger the next day deposit schedule. As an example, some business owners will take their entire annual salary in December and have most of the salary withheld as federal withholding. The substantial additional withholding can trigger the next day payment schedule.
Federal Employer Payroll Tax Payment Deadlines - Form 941
By: Paul W Carlson
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