Figure Out Your Federal Tax Deposit Schedule

A federal deposit schedule tells you how often you must deposit payroll taxes with the IRS.

These taxes include:

  • Federal income tax withheld from employees

  • Both the employee and employer parts of Social Security and Medicare

The IRS decides your deposit schedule based on how much tax you owe. They usually tell you your schedule when you get your Employer Identification Number (EIN) or in other IRS messages.

Following the correct schedule helps you avoid late deposit penalties.

To determine your federal deposit schedule:

  1. Have your FEIN. Make sure you have your Federal Employer Identification Number (FEIN), a unique identifier assigned to your business by the IRS.

  2. Review your previous year's payroll tax liability. Add up all federal income, Social Security, and Medicare taxes from last year (both employee and employer parts). Check your payroll records or consult your payroll provider/accountant for this information.

  3. Compare your total tax liability to the IRS thresholds for deposit schedules:

    • Monthly Deposit Schedule: If your liability was $50,000 or less, you follow the Monthly Deposit Schedule. Deposit taxes by the 15th day of the following month.

    • Semiweekly Deposit Schedule: If your liability was over $50,000, you follow the Semiweekly Deposit Schedule. Deposit taxes on Wednesdays or Fridays, depending on when wages are paid.

    • Next-Day Deposit Schedule: If your liability exceeds $100,000 on any given day, you must deposit taxes on the next banking day.

  4. Visit the IRS website and refer to their Circular E, Employer's Tax Guide for the most up-to-date information on federal deposit schedules. This helps you confirm the correct schedule for your business.

Determining your federal deposit schedule is crucial for meeting payroll tax obligations. Follow these steps to assess your tax liability and identify the appropriate deposit schedule. Remember to review your deposit schedule each year, as changes in tax liability may result in a different schedule. If you need further assistance, consult a tax professional or contact the IRS directly at (800) 829-1040.