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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
may be made on Thursday. This allows 3 business days In addition, once you accumulate at least $100,000 in
to make the deposit. a deposit period, stop accumulating at the end of that
day and begin to accumulate anew the next day. For
Application of Monthly and example, Fir Co. is a semiweekly schedule depositor. On
Monday, Fir Co. accumulates taxes of $110,000 and
Semiweekly Schedules must deposit this amount on Tuesday, the next business
day. On Tuesday, Fir Co. accumulates additional taxes of
The terms “monthly schedule depositor” and $30,000. Because the $30,000 isn't added to the
“semiweekly schedule depositor” don't refer to how often previous $110,000 and is less than $100,000, Fir Co.
your business pays its employees or even to how often must deposit the $30,000 by Friday, following the
you must make deposits. The terms identify which set of semiweekly deposit schedule.
deposit rules you must follow when an employment tax
liability arises. The deposit rules are based on the dates If you’re a monthly schedule depositor and
wages are paid, not on when employment tax liabilities accumulate a $100,000 tax liability on any day, you
are accrued. become a semiweekly schedule depositor on the next
day and remain so for at least the rest of the calendar
Monthly schedule example. Spruce Co. is a monthly year and for the following calendar year.
schedule depositor with seasonal employees. It paid
wages each Friday during January, but didn't pay any
wages during February. Under the monthly schedule,
Spruce Co. must deposit the combined tax liabilities for !
CAUTION
the January paydays by February 15. Spruce Co. doesn't The $100,000 tax liability threshold requiring
have a deposit requirement for February (due by March a next-day deposit is determined before you consider
15) because no wages were paid and, therefore, it didn't any reduction of your liability for nonrefundable
have a tax liability for February. credits. For more information, see frequently asked
question 17 at IRS.gov/ETD.
Semiweekly schedule example. Green, Inc., has a
semiweekly deposit schedule and pays wages once
each month on the last Friday of the month. Although
Green, Inc., has a semiweekly deposit schedule, it will
Example of $100,000 next-day deposit rule. Elm,
deposit just once a month because it pays wages only
Inc., started its business on May 6, 2024. On
once a month. The deposit, however, will be made under
Wednesday, May 8, it paid wages for the first time and
the semiweekly deposit schedule as follows: Green,
accumulated a tax liability of $40,000. On Friday, May
Inc.’s tax liability arises when it pays wages on April 26,
10, Elm, Inc., paid wages and accumulated a liability of
2024 (Friday); the liability must be deposited by May 1,
$60,000, making its accumulated tax liability total
2024 (Wednesday). Under the semiweekly deposit
$100,000. Elm, Inc., must deposit $100,000 by Monday,
schedule, liabilities for wages paid on Wednesday
May 13, the next business day. Because this was the
through Friday must be deposited by the following
first year of its business, the tax liability for its lookback
Wednesday.
period is considered to be zero, and it would be a
monthly schedule depositor based on the lookback
$100,000 Next-Day Deposit Rule rules. However, because Elm, Inc., accumulated
$100,000 on May 10, it became a semiweekly schedule
If you accumulate a tax liability of $100,000 or more on depositor on May 11. It will be a semiweekly schedule
any day during a deposit period, you must deposit the depositor for at least the remainder of 2024 and for
tax by the close of the next business day, whether you’re 2025.
a monthly or semiweekly schedule depositor. The
deposit period for monthly schedule depositors is a
Adjustments and the Lookback Rule
calendar month. For semiweekly schedule depositors,
the deposit periods are Wednesday through Friday and Determine your tax liability for the lookback period
Saturday through Tuesday. (4-quarter lookback period for Form 941 and
calendar-year lookback period for Forms 943, 944, 945,
For the $100,000 next-day deposit rule, don't continue
and CT-1) based on the tax liability as originally
accumulating tax liabilities after the end of a deposit
reported. If you later made adjustments to correct errors
period. For example, if a semiweekly schedule depositor
on those returns by filing a Form 941-X, Form 943-X,
has accumulated a liability of $95,000 on a Tuesday (of a
Form 944-X, Form 945-X, or Form CT-1 X, these
Saturday-through-Tuesday deposit period) and
adjustments don't affect the amount of the employment
accumulated a $10,000 liability on Wednesday, the
tax liability for the lookback rule.
$100,000 next-day deposit rule doesn't apply because
the $10,000 is accumulated in the next deposit period.
Therefore, $95,000 must be deposited by Friday and Example of adjustments and the lookback rule for
$10,000 by the following Wednesday. Form 941. An employer originally reported a tax liability
of $45,000 for the 4 quarters in the lookback period
IRS.gov Catalog No. 14736T
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