StartEaseHelp / Payroll glossary
What is a federal deposit schedule?
The IRS assigns each employer a monthly or semiweekly schedule for federal payroll tax deposits.
What is a federal deposit schedule?
The IRS assigns each employer a monthly or semiweekly deposit schedule from a lookback period. Monthly deposits are due the 15th of the next month, semiweekly deposits are due the next Wednesday or Friday, and $100,000 or more of tax on any day is due the next business day.
Why does it matter?
Your deposit schedule decides when each federal deposit is due. A wrong schedule means every due date in your calendar is wrong.
A common mistake is to set a monthly schedule when the IRS assigned a semiweekly one.
The key facts
| Fact | What it means |
|---|---|
| Lookback period | The 12 months from July 1 to June 30 before the year. |
| Monthly | Taxes of $50,000 or less in the lookback period. Pay dates in a month are due the 15th of the next month. |
| Semiweekly | More than $50,000. Wednesday to Friday pay dates are due the next Wednesday. Saturday to Tuesday pay dates are due the next Friday. |
| Next-day | $100,000 or more of tax on any day is due the next business day, on either schedule. |
| A weekend or legal holiday | The due date moves to the next business day. |
| How you pay | Electronically, through EFTPS. |
How does it work in StartEase Payroll?
- Open Reports & forms and choose Monthly tax deposits.
- Read which schedule applies. It shows, for example, Monthly schedule.
- Read each due date, and pay or check the deposit by that date.
- Record each deposit with the date, the confirmation number and the receipt.
Common mistakes
- Setting the wrong schedule on the company record.
- Forgetting the next-day rule on a large payroll day.
- Not checking the schedule each year. The IRS assigns it from the lookback period before the year.
Related guides
Federal tax deposits and Form 941, What is EFTPS? and What is Form 941?
Sources (government sites)
Next: What is Form 941?