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Department of the Treasury
Notice 931 Internal Revenue Service
(Rev. September 2023)

Deposit Requirements for Employees; Form 944, Employer's ANNUAL Federal Tax
Return; Form 945, Annual Return of Withheld Federal
Employment Taxes Income Tax; and Form CT-1, Employer's Annual
Railroad Retirement Tax Return. However, the period
There are two deposit schedules—monthly or used as your lookback period is different; see Lookback
semiweekly—for determining when you deposit social period for annual returns, later. For more information
security and Medicare taxes and withheld federal about deposit rules for annual returns, see section 11 of
income tax. These schedules tell you when a deposit is Pub. 15 (for Forms 943, 944, and 945) and the
due after a tax liability arises (for example, when you Instructions for Form CT-1.
have a payday). Before the beginning of each calendar
year, you must determine which of the two deposit Federal tax deposits must be made by electronic
schedules you must use. The deposit schedule you must funds transfer (EFT). You must use EFT to make all
use is based on the total tax liability you reported during federal tax deposits. Generally, an EFT is made using
a lookback period. Your deposit schedule isn't the Electronic Federal Tax Payment System (EFTPS). If
determined by how often you pay your employees or you don't want to use EFTPS, you can arrange for your
make deposits. See Application of Monthly and tax professional, financial institution, payroll service, or
Semiweekly Schedules, later. other trusted third party to make electronic deposits on
These rules don't apply to federal unemployment your behalf. Also, you may arrange for your financial
(FUTA) tax. See the Instructions for Form 940 for institution to initiate a same-day wire payment on your
information on depositing FUTA tax. behalf. EFTPS is a free service provided by the
Department of the Treasury. Services provided by your
Deposit rules for Form 941. Your deposit schedule tax professional, financial institution, payroll service, or
(monthly or semiweekly) for Form 941, Employer's other third party may have a fee.
QUARTERLY Federal Tax Return, is based on the total For more information on making federal tax deposits,
tax liability you reported on Forms 941 during a 4-quarter see section 11 of Pub. 15. To get more information about
lookback period discussed later under Lookback period EFTPS or to enroll in EFTPS, visit EFTPS.gov or call
for Form 941. 800-555-4477. Dial 711 if you're deaf, hard of hearing, or
Instead of making deposits during the current quarter, have a speech disability and then provide the
you can pay your total Form 941 tax liability when you Telecommunications Relay Services (TRS)
timely file Form 941 if: communications assistant with the number above or
1. Your total Form 941 tax liability for either the 800-733-4829. Additional information about EFTPS is
current quarter or the preceding quarter is less than also available in Pub. 966.
$2,500, and Depositing on time. For EFTPS deposits to be on
2. You don't incur a $100,000 next-day deposit time, you must submit the deposit by 8 p.m. Eastern time
obligation during the current quarter. the day before the date the deposit is due. If you fail to
submit an EFTPS deposit on time, you may use the
If you’re not sure your total liability for the current
same-day wire payment option discussed above.
quarter will be less than $2,500, and your liability for the
preceding quarter wasn't less than $2,500, make
Lookback period for Form 941. Your deposit
deposits using the semiweekly or monthly rules so you
schedule for a calendar year is determined from the total
won't be subject to failure-to-deposit penalties. For more
taxes reported on your Forms 941 in a 4-quarter
information about deposit rules for Form 941, see
lookback period. The lookback period begins July 1 and
section 11 of Pub. 15.
ends June 30, as shown in the following chart. If you
reported $50,000 or less of Form 941 taxes for the
Deposit rules for annual Forms 943, 944, 945, and
lookback period, you’re a monthly schedule depositor; if
CT-1. Generally, the deposit rules for quarterly filers of
you reported more than $50,000, you’re a semiweekly
Form 941 also apply to annual filers of Form 943,
schedule depositor.
Employer's Annual Federal Tax Return for Agricultural

IRS.gov Catalog No. 14736T

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Form 941 Lookback Period for Calendar                                is a calendar quarter. The return period for annual Forms 
Year 2024                                                            943, 944, 945, and CT-1 is a calendar year. If a return 
                                                                     period ends on a day other than Friday or Tuesday, taxes 
            Lookback Period                                          accumulated on the days during the return period just 
        2022                 2023                      2024          ending are subject to one deposit obligation, and taxes 
                                                                     accumulated on the days covered by the new return 
July 1   Oct. 1      Jan. 1        Apr. 1             Calendar 
through  through     through     through   ←           Year          period are subject to a separate deposit obligation. For 
Sept. 30 Dec. 31     Mar. 31       June 30            Jan.– Dec.     example, if a return period ends on Thursday, taxes 
                                                                     accumulated on Wednesday and Thursday are subject 
                                                                     to one deposit obligation, and taxes accumulated on 
                                                                     Friday are subject to a separate obligation. Separate 
CAUTION!
         The lookback period for a 2024 Form 941 filer who filed     deposits are required because two different return 
Form 944 in either 2022 or 2023 is calendar year 2022.               periods are affected.

TIP                                                                  Example of Monthly and Semiweekly 
         Your total tax liability is the amount you reported on      Schedules
line 12 of Form 941. Your total liability is not reduced by the 
refundable portion of the credit for qualified sick and family leave Hazel Jones reported Form 941 tax liabilities as follows:
wages. For more information about this credit, see the instructions 
for your employment tax return that were applicable during the           2023 Lookback Period 2024 Lookback Period
lookback period.                                                     3rd Quarter 2021—$12,000 3rd Quarter 2022—$12,000
                                                                     4th Quarter 2021—$12,000 4th Quarter 2022—$12,000
Lookback period for annual returns.        For annual                1st Quarter 2022—$12,000 1st Quarter 2023—$12,000
returns (Forms 943, 944, 945, and CT-1), the lookback                2nd Quarter 2022—$12,000 2nd Quarter 2023—$15,000
period is the calendar year preceding the previous year.                           $48,000                               $51,000
For example, the lookback period for 2024 is 2022.

Monthly Deposit Schedule                                             Hazel is a monthly schedule depositor for 2023 
                                                                     because Hazel’s tax liability for the 4 quarters in the 
You’re a monthly schedule depositor for a calendar year              lookback period (3rd quarter 2021 through 2nd quarter 
if the total tax reported for your lookback period was               2022) wasn't more than $50,000. However, for 2024, 
$50,000 or less.                                                     Hazel is a semiweekly schedule depositor because 
                                                                     Hazel’s liability exceeded $50,000 for the 4 quarters in 
Under the monthly deposit schedule, deposit 
                                                                     the lookback period (3rd quarter 2022 through 2nd 
accumulated taxes on payments made during a calendar 
                                                                     quarter 2023).
month by the 15th day of the following month.

New employers.   Your tax liability for any quarter in the           Deposits Due on Business Days 
lookback period before the date you started or acquired              Only
your business is considered to be zero. Therefore, you’re 
a monthly schedule depositor for the first calendar year             If a deposit is due on a day that isn't a business day, the 
of your business. However, see the $100,000 Next-Day                 deposit is considered to have been made timely if it is 
Deposit Rule, later.                                                 made by the close of the next business day. A business 
                                                                     day is any day other than a Saturday, Sunday, or legal 
Semiweekly Deposit Schedule                                          holiday. For example, if a deposit is due on a Friday and 
                                                                     Friday is a legal holiday, the deposit will be considered 
You’re a semiweekly schedule depositor for a calendar                timely if it is made by the following Monday (if that 
year if the total taxes during your lookback period were             Monday is a business day). The term "legal holiday" 
more than $50,000.                                                   means any legal holiday in the District of Columbia. For a 
                                                                     list of legal holidays, see section 11 of Pub. 15.
Deposit Period (Payment Days)      Deposit By
Wednesday, Thursday, and/or Friday Following Wednesday               Semiweekly schedule depositors have at least 3 
                                                                     business days following the close of the semiweekly 
Saturday, Sunday, Monday, and/or   Following Friday
Tuesday                                                              period to make a deposit. That is, if any of the 3 
                                                                     weekdays after the end of a semiweekly period is a legal 
                                                                     holiday, you’ll have an additional business day to deposit 
                                                                     for each day that is a legal holiday. For example, if a 
                                                                     semiweekly schedule depositor accumulated taxes for 
Semiweekly deposit period spanning two return                        payments made on Friday and the following Monday is a 
periods. The period of time covered by a return is the               legal holiday, the deposit normally due on Wednesday 
return period. The return period for a quarterly Form 941 
IRS.gov                                                                                       Catalog No. 14736T

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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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ending June 30, 2023. This makes the employer a             You may pay the shortfall with your return even if the 
monthly schedule depositor because the tax liability        amount is $2,500 or more.
originally reported didn't exceed $50,000. The employer 
discovered during January 2024 that the tax during 1 of     Semiweekly schedule depositor. Deposit by the 
the lookback period quarters was understated by             earlier of:
$10,000 and corrected this error with an adjustment on      1. The first Wednesday or Friday that falls on or after 
Form 941-X. This employer remains a monthly schedule        the 15th day of the month following the month in which 
depositor for 2024 because the lookback period tax          the shortfall occurred, or
liabilities are based on the amounts originally reported 
                                                            2. The due date of your return (for the return period 
and they didn't exceed $50,000. The $10,000 
                                                            of the tax liability). Forms 941, 943, 944, and 945 are 
adjustment doesn't affect the amount of tax liability for 
                                                            due by the last day of the month following the period for 
the lookback rule. The $10,000 adjustment is also not 
                                                            which the returns were made. Form CT-1 is due by the 
treated as part of the 2024 taxes.
                                                            last day of the second month following the calendar year.
Accuracy of Deposits Rule                                   For example, if a semiweekly schedule depositor has a 
                                                            deposit shortfall during February 2024, the shortfall 
You’re required to deposit 100% of your tax liability on or makeup date is March 15, 2024 (Friday). However, if the 
before the deposit due date. However, penalties won't be    shortfall occurred on the required October 2, 2024 
applied for depositing less than 100% if both of the        (Wednesday), deposit due date for the September 27, 
following conditions are met.                               2024 (Friday), pay date, the return due date for the 
1. Any deposit shortfall doesn't exceed the greater of      September 27 pay date (October 31, 2024) would come 
$100 or 2% of the amount of taxes otherwise required to     before the November 15, 2024 (Friday), shortfall makeup 
be deposited.                                               date. In this case, the shortfall must be deposited by 
                                                            October 31, 2024.
2. The deposit shortfall is paid or deposited by the 
shortfall makeup date as described below.

Makeup Date for Deposit Shortfall

Monthly schedule depositor.   Deposit or pay the 
shortfall with your return by the due date of the return. 

IRS.gov                                                                                    Catalog No. 14736T

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