Deposit Frequency vs. Filing Frequency

Deposit frequency refers to how often payroll taxes, e.g., Federal Income Tax (FIT), Social Security, and Medicare, must be deposited with the appropriate tax agencies. This frequency is determined by the IRS, or applicable state agency, and is based on factors such as the total amount of tax liability over a lookback period.

Common Deposit Frequencies:

• Monthly: Deposits are made once a month, usually by the 15th of the following month.

• Semi-weekly: Deposits are made twice a week, depending on the payroll date.

• Next-day: Larger employers may be required to deposit taxes the next banking day after payroll.

Filing frequency refers to how often payroll tax forms, such as Form 941 or state equivalent, must be submitted to federal, state, or local tax agencies. These filings report wage and tax details for a specific period and ensure proper tax reconciliation.

Common Filing Frequencies:

• Quarterly: Forms such as IRS Form 941 are submitted at the end of each calendar quarter.

• Annually: Some small businesses or special employment types may file certain forms once a year (e.g., Form 944).

• Monthly or Semi-monthly: Some states require more frequent filings depending on total wages paid or industry classification.