Federal Tax Deposit Schedules: Monthly vs. Semiweekly Rules

Understanding Your Federal Tax Deposit Schedule

The IRS requires employers to deposit Social Security, Medicare, and withheld federal income taxes using one of two schedules: monthly or semiweekly. Your schedule is not a choice; it is determined by the total tax liability reported during a specific 12-month lookback period.

The Lookback Period Defined

Your 941 deposit schedule for a calendar year is determined by the taxes reported on Form 941 during the lookback period, which runs from July 1 of the second preceding year through June 30 of the prior year. For example, the 2024 schedule is based on the period from July 1, 2022, to June 30, 2023.

• Monthly Depositor: If your total tax liability during the lookback period was $50,000 or less.
• Semiweekly Depositor: If your total tax liability during the lookback period exceeded $50,000.

Monthly Deposit Rules

Monthly depositors must deposit employment taxes on payments made during a month by the 15th day of the following month. If the 15th falls on a weekend or bank holiday, the deposit is due the next business day.

Semiweekly Deposit Rules

The term "semiweekly" refers to the timing of the deposit relative to the payday, not how often you pay employees. The deadlines are as follows:

• Paydays on Wednesday, Thursday, or Friday: Deposit by the following Wednesday.
• Paydays on Saturday, Sunday, Monday, or Tuesday: Deposit by the following Friday.

Semiweekly depositors always have at least three business days to make the deposit. If a bank holiday occurs, you receive an additional day.

The $100,000 Next-Day Deposit Rule

Regardless of your status as a monthly or semiweekly depositor, if you accumulate a tax liability of $100,000 or more on any day during a deposit period, you must deposit the tax by the next business day. If this occurs, you immediately become a semiweekly depositor for the remainder of the current year and the following calendar year.

Compliance and Reporting

Failure to adhere to the correct 941 deposit schedule results in failure-to-deposit penalties ranging from 2% to 15% of the underpayment, depending on how many days the deposit is late. All deposits must be made via the Electronic Federal Tax Payment System (EFTPS).