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Department of the Treasury
Notice 931 Internal Revenue Service
(Rev. September 2021)

Deposit Requirements for Federal tax deposits must be made by electronic
funds transfer (EFT). You must use EFT to make all
Employment Taxes federal tax deposits. Generally, an EFT is made using
the Electronic Federal Tax Payment System (EFTPS). If
There are two deposit schedules—monthly or
you don't want to use EFTPS, you can arrange for your
semiweekly—for determining when you deposit social
tax professional, financial institution, payroll service, or
security and Medicare taxes and withheld federal
other trusted third party to make electronic deposits on
income tax. These schedules tell you when a deposit is
your behalf. Also, you may arrange for your financial
due after a tax liability arises (for example, when you
institution to initiate a same-day wire payment on your
have a payday). Before the beginning of each calendar
behalf. EFTPS is a free service provided by the
year, you must determine which of the two deposit
Department of the Treasury. Services provided by your
schedules you must use. The deposit schedule you
tax professional, financial institution, payroll service, or
must use is based on the total tax liability you reported
other third party may have a fee.
during a lookback period. Your deposit schedule isn't
determined by how often you pay your employees or For more information on making federal tax deposits,
make deposits. See Application of Monthly and see section 11 of Pub. 15. To get more information
Semiweekly Schedules, later. about EFTPS or to enroll in EFTPS, visit EFTPS.gov or
call 800-555-4477 or 800-733-4829 (TDD). Additional
These rules don't apply to federal unemployment information about EFTPS is also available in Pub. 966.
(FUTA) tax. See the Instructions for Form 940 for
information on depositing FUTA tax. Depositing on time. For EFTPS deposits to be on
time, you must submit the deposit by 8 p.m. Eastern time
Deposit rules for Form 941. Your deposit schedule the day before the date the deposit is due. If you fail to
(monthly or semiweekly) for Form 941, Employer's submit an EFTPS deposit on time, you may use the
QUARTERLY Federal Tax Return, is based on the total same-day wire payment option discussed above.
tax liability you reported on Forms 941 during a 4-quarter
lookback period discussed later under Lookback period Lookback period for Form 941. Your deposit
for Form 941. schedule for a calendar year is determined from the total
Instead of making deposits during the current quarter, taxes reported on your Forms 941 in a 4-quarter
you can pay your total Form 941 tax liability when you lookback period. The lookback period begins July 1 and
timely file Form 941 if: ends June 30, as shown in the following chart. If you
reported $50,000 or less of Form 941 taxes for the
1. Your total Form 941 tax liability for either the lookback period, you’re a monthly schedule depositor; if
current quarter or the preceding quarter is less than you reported more than $50,000, you’re a semiweekly
$2,500, and schedule depositor. The lookback period for a 2022
2. You don't incur a $100,000 next-day deposit Form 941 filer who filed Form 944 in either 2020 or 2021
obligation during the current quarter. is calendar year 2020.
If you’re not sure your total liability for the current
quarter will be less than $2,500, and your liability for the Form 941 Lookback Period for Calendar
preceding quarter wasn't less than $2,500, make Year 2022
deposits using the semiweekly or monthly rules so you
won't be subject to failure-to-deposit penalties. For more Lookback Period
information about deposit rules for Form 941, see 2020 2021 2022
section 11 of Pub. 15. July 1 Oct. 1 Jan. 1 Apr. 1 Calendar
through through through through ← Year
Deposit rules for annual Forms 943, 944, 945, and Sept. 30 Dec. 31 Mar. 31 June 30 Jan.– Dec.
CT-1. Generally, the deposit rules for quarterly filers of
Form 941 also apply to annual filers of Form 943,
Employer's Annual Federal Tax Return for Agricultural TIP
Employees; Form 944, Employer's ANNUAL Federal Your total tax liability is the amount you reported on
Tax Return; Form 945, Annual Return of Withheld line 12 of Form 941 or Form 941-SS. Your total liability is not
Federal Income Tax; and Form CT-1, Employer's Annual reduced by the deferred amount of the employer or employee share
Railroad Retirement Tax Return. However, the period of social security tax, the refundable portion of the credit for
qualified sick and family leave wages, the refundable portion of the
used as your lookback period is different; see Lookback employee retention credit, or the refundable portion of the COBRA
period for annual returns, later. For more information premium assistance credit. For more information about deferring
about deposit rules for annual returns, see section 11 of social security tax and these credits, see the instructions for your
Pub. 15 (for Forms 944 and 945), section 7 of Pub. 51 employment tax return.
(for Form 943), and the Instructions for Form CT-1.
IRS.gov Catalog No. 14736T

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Lookback period for annual returns.    For annual                2021 Lookback Period        2022 Lookback Period
returns (Forms 943, 944, 945, and CT-1), the lookback            3rd Quarter 2019—$12,000 3rd Quarter 2020—$12,000
period is the calendar year preceding the previous year.         4th Quarter 2019—$12,000 4th Quarter 2020—$12,000
For example, the lookback period for 2022 is 2020.               1st Quarter 2020—$12,000 1st Quarter 2021—$12,000
                                                                 2nd Quarter 2020—$12,000 2nd Quarter 2021—$15,000
Monthly Deposit Schedule                                               $48,000                                           $51,000

You’re a monthly schedule depositor for a calendar year 
if the total tax reported for your lookback period was     Hazel is a monthly schedule depositor for 2021 
$50,000 or less.                                           because her tax liability for the 4 quarters in the 
                                                           lookback period (3rd quarter 2019 through 2nd quarter 
Under the monthly deposit schedule, deposit                2020) wasn't more than $50,000. However, for 2022, 
accumulated taxes on payments made during a                Hazel is a semiweekly schedule depositor because her 
calendar month by the 15th day of the following month.     liability exceeded $50,000 for the 4 quarters in the 
                                                           lookback period (3rd quarter 2020 through 2nd quarter 
New employers.   Your tax liability for any quarter in the 2021).
lookback period before the date you started or acquired 
your business is considered to be zero. Therefore, 
you’re a monthly schedule depositor for the first          Deposits Due on Business Days 
calendar year of your business. However, see the           Only
$100,000 Next-Day Deposit Rule, later.
                                                           If a deposit is due on a day that isn't a business day, the 
                                                           deposit is considered to have been made timely if it is 
Semiweekly Deposit Schedule                                made by the close of the next business day. A business 
You’re a semiweekly schedule depositor for a calendar      day is any day other than a Saturday, Sunday, or legal 
year if the total taxes during your lookback period were   holiday. For example, if a deposit is due on a Friday and 
more than $50,000.                                         Friday is a legal holiday, the deposit will be considered 
                                                           timely if it is made by the following Monday (if that 
Deposit Period (Payment Days)      Deposit By              Monday is a business day). The term "legal holiday" 
Wednesday, Thursday, and/or Friday Following Wednesday     means any legal holiday in the District of Columbia. For 
                                                           a list of legal holidays, see section 11 of Pub. 15 or 
Saturday, Sunday, Monday, and/or   Following Friday
Tuesday                                                    section 7 of Pub. 51.
                                                           Semiweekly schedule depositors have at least 3 
                                                           business days following the close of the semiweekly 
                                                           period to make a deposit. That is, if any of the 3 
                                                           weekdays after the end of a semiweekly period is a legal 
Semiweekly deposit period spanning two return 
                                                           holiday, you’ll have an additional business day to 
periods. The period of time covered by a return is the 
                                                           deposit for each day that is a legal holiday. For example, 
return period. The return period for a quarterly Form 941 
                                                           if a semiweekly schedule depositor accumulated taxes 
is a calendar quarter. The return period for annual Forms 
                                                           for payments made on Friday and the following Monday 
943, 944, 945, and CT-1 is a calendar year. If a return 
                                                           is a legal holiday, the deposit normally due on 
period ends on a day other than Friday or Tuesday, 
                                                           Wednesday may be made on Thursday. This allows 3 
taxes accumulated on the days during the return period 
                                                           business days to make the deposit.
just ending are subject to one deposit obligation, and 
taxes accumulated on the days covered by the new 
return period are subject to a separate deposit            Application of Monthly and 
obligation. For example, if a return period ends on        Semiweekly Schedules
Thursday, taxes accumulated on Wednesday and 
Thursday are subject to one deposit obligation, and        The terms “monthly schedule depositor” and 
taxes accumulated on Friday are subject to a separate      “semiweekly schedule depositor” don't refer to how often 
obligation. Separate deposits are required because two     your business pays its employees or even to how often 
different return periods are affected.                     you must make deposits. The terms identify which set of 
                                                           deposit rules you must follow when an employment tax 
                                                           liability arises. The deposit rules are based on the dates 
Example of Monthly and Semiweekly 
                                                           wages are paid, not on when employment tax liabilities 
Schedules                                                  are accrued.
Hazel Jones reported Form 941 tax liabilities as follows:
                                                           Monthly schedule example.      Spruce Co. is a monthly 
                                                           schedule depositor with seasonal employees. It paid 
                                                           wages each Friday during May, but didn't pay any 
                                                           wages during June. Under the monthly schedule, 
                                                           Spruce Co. must deposit the combined tax liabilities for 
IRS.gov                                                                                      Catalog No. 14736T

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the May paydays by June 15. Spruce Co. doesn't have a
deposit requirement for June (due by July 15) because
no wages were paid and, therefore, it didn't have a tax !
CAUTION
liability for June. The $100,000 tax liability threshold requiring
a next-day deposit is determined before you consider
Semiweekly schedule example. Green, Inc., has a any reduction of your liability for nonrefundable
semiweekly deposit schedule and pays wages once credits. For more information, see frequently asked
each month on the last Friday of the month. Although question 17 at IRS.gov/ETD.
Green, Inc., has a semiweekly deposit schedule, it will
deposit just once a month because it pays wages only
once a month. The deposit, however, will be made
under the semiweekly deposit schedule as follows:
Example of $100,000 next-day deposit rule. Elm,
Green, Inc.’s tax liability arises when it pays wages on
Inc., started its business on May 2, 2022. On
April 29, 2022 (Friday); the liability must be deposited by
Wednesday, May 4, it paid wages for the first time and
May 4, 2022 (Wednesday). Under the semiweekly
accumulated a tax liability of $40,000. On Friday, May 6,
deposit schedule, liabilities for wages paid on
Elm, Inc., paid wages and accumulated a liability of
Wednesday through Friday must be deposited by the
$60,000, making its accumulated tax liability total
following Wednesday.
$100,000. Elm, Inc., must deposit $100,000 by Monday,
May 9, the next business day. Because this was the first
$100,000 Next-Day Deposit Rule year of its business, the tax liability for its lookback
period is considered to be zero, and it would be a
If you accumulate a tax liability of $100,000 or more on monthly schedule depositor based on the lookback
any day during a deposit period, you must deposit the rules. However, because Elm, Inc., accumulated
tax by the close of the next business day, whether you’re $100,000 on May 6, it became a semiweekly schedule
a monthly or semiweekly schedule depositor. The depositor on May 7. It will be a semiweekly schedule
deposit period for monthly schedule depositors is a depositor for at least the remainder of 2022 and for
calendar month. For semiweekly schedule depositors, 2023.
the deposit periods are Wednesday through Friday and
Saturday through Tuesday.
Adjustments and the Lookback Rule
For the $100,000 next-day deposit rule, don't
continue accumulating tax liabilities after the end of a Determine your tax liability for the lookback period
deposit period. For example, if a semiweekly schedule (4-quarter lookback period for Form 941 and
depositor has accumulated a liability of $95,000 on a calendar-year lookback period for Forms 943, 944, 945,
Tuesday (of a Saturday-through-Tuesday deposit and CT-1) based on the tax liability as originally
period) and accumulated a $10,000 liability on reported. If you later made adjustments to correct errors
Wednesday, the $100,000 next-day deposit rule doesn't on those returns by filing a Form 941-X, Form 943-X,
apply because the $10,000 is accumulated in the next Form 944-X, Form 945-X, or Form CT-1 X, these
deposit period. Therefore, $95,000 must be deposited adjustments don't affect the amount of the employment
by Friday and $10,000 by the following Wednesday. tax liability for the lookback rule.
In addition, once you accumulate at least $100,000 in
Example of adjustments and the lookback rule for
a deposit period, stop accumulating at the end of that
Form 941. An employer originally reported a tax liability
day and begin to accumulate anew the next day. For
of $45,000 for the 4 quarters in the lookback period
example, Fir Co. is a semiweekly schedule depositor.
ending June 30, 2021. This makes the employer a
On Monday, Fir Co. accumulates taxes of $110,000 and
monthly schedule depositor because the tax liability
must deposit this amount on Tuesday, the next business
originally reported didn't exceed $50,000. The employer
day. On Tuesday, Fir Co. accumulates additional taxes
discovered during January 2022 that the tax during 1 of
of $30,000. Because the $30,000 isn't added to the
the lookback period quarters was understated by
previous $110,000 and is less than $100,000, Fir Co.
$10,000 and corrected this error with an adjustment on
must deposit the $30,000 by Friday, following the
Form 941-X. This employer remains a monthly schedule
semiweekly deposit schedule.
depositor for 2022 because the lookback period tax
If you’re a monthly schedule depositor and liabilities are based on the amounts originally reported
accumulate a $100,000 tax liability on any day, you and they didn't exceed $50,000. The $10,000
become a semiweekly schedule depositor on the next adjustment doesn't affect the amount of tax liability for
day and remain so for at least the rest of the calendar the lookback rule. The $10,000 adjustment is also not
year and for the following calendar year. treated as part of the 2022 taxes.

IRS.gov Catalog No. 14736T

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Accuracy of Deposits Rule                                   1. The first Wednesday or Friday that falls on or after 
                                                            the 15th day of the month following the month in which 
You’re required to deposit 100% of your tax liability on or the shortfall occurred, or
before the deposit due date. However, penalties won't       2. The due date of your return (for the return period 
be applied for depositing less than 100% if both of the     of the tax liability). Forms 941, 943, 944, and 945 are 
following conditions are met.                               due by the last day of the month following the period for 
1. Any deposit shortfall doesn't exceed the greater of      which the returns were made. Form CT-1 is due by the 
$100 or 2% of the amount of taxes otherwise required to     last day of the second month following the calendar 
be deposited.                                               year.
2. The deposit shortfall is paid or deposited by the        For example, if a semiweekly schedule depositor has a 
shortfall makeup date as described below.                   deposit shortfall during May 2022, the shortfall makeup 
                                                            date is June 15, 2022 (Wednesday). However, if the 
Makeup Date for Deposit Shortfall                           shortfall occurred on the required April 1, 2022 (Friday), 
                                                            deposit due date for the March 29, 2022 (Tuesday), pay 
Monthly schedule depositor.   Deposit or pay the            date, the return due date for the March 29 pay date (May 
shortfall with your return by the due date of the return.   2, 2022) would come before the May 18, 2022 
You may pay the shortfall with your return even if the      (Wednesday), shortfall makeup date. In this case, the 
amount is $2,500 or more.                                   shortfall must be deposited by May 2, 2022.

Semiweekly schedule depositor. Deposit by the 
earlier of:

IRS.gov                                                                               Catalog No. 14736T

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