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Federal Deposit Rules Summary | Payroll-Taxes.com


If, at the end of a quarter, your total FICA and FIT tax liability is less than $2,500, you may pay the taxes with your Form 941 quarterly return.

Monthly Rule

If you expect total FICA and FIT tax liability during the look back period (twelve month period ended June 30, 2010) was less than $50,000, and your tax liability for any given month is more than $2,500 but less than $100,000, you must deposit those taxes by the 15th of the following month.  See also Monthly Depositor.

Semi Weekly Rule

If your total FICA and FIT tax liability during the look back period (twelve month period ended June 30, 2010) was more than $50,000, and your tax liability for any given payroll period is less than $100,000, you; must deposit those taxes by the end of Wednesday (for a payday on the previous Wednesday, Thursday, or Friday) or by the end of Friday (for a payday on the previous Saturday, Sunday, Monday, or Tuesday).  See also Semi Weekly Depositor.

One-Day Rule

If your total FICA and FIT tax liability accumulates to $100,000 prior to an otherwise regular deposit date, you must deposit those taxes by the end of the next banking day. (See also Accelerated Deposit Rule.) If you are a monthly depositor and become subject to the accelerated deposit rule, you become a semi weekly depositor on that day and remain so for the remainder of the current calendar year and for the following calendar year.

Deposit Safe Harbor Rule

The federal payroll withholding deposit obligation will be satisfied if the difference between the amount of tax that should have been deposited less the amount of tax actually deposited (shortfall) does not exceed the greater of $100 or 2% of the amount required to be deposited. The shortfall must, however, be deposited by a specified make-up date. The make-up date for monthly depositors is the due date for the quarterly return. The make-up date for semi weekly depositors and those required to make accelerated deposits is the first Wednesday or Friday (whichever is earlier) falling on or after the 15th day of the month in which the deposit was due.


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Helpful Hint... Anytime you move or have a major life change (for example - marriage, divorce, birth of a child, etc.) always be sure to complete a new W-4!