Welcome Guest. Register Now!  


Payroll Payroll related topics.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-10-2010, 07:33 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,397
Blog Entries: 3
When Must an Employer Deposit their Payroll Tax Liabilities?

The IRS uses two different sets of deposit rules to determine when a particular business must deposit their Social Security, Medicare, and Federal income taxes withheld. An Employers deposit schedule is not determined by how often that employer pays their employees. A "deposit schedule"' depends on the total tax liability an employer has reported on Form 941 during the previous four-quarter lookback period (July 1 of the second preceding calendar year through June 30 of last year).

Before the beginning of each calendar year, the employer must determine which type of deposit schedule that need to be used. If that employer reported:

1. $50,000 or less in taxes during the lookback period:
In this situation, then that employer must use a monthly schedule depositor. That employer must check the appropriate box on line 17 and, if the payroll tax liability for the quarter was $2,500 or more, then that employer must fill out the tax liability for each month in the quarter.

2. More than $50,000 of taxes for the lookback period:
In this situation, then that employer is a semiweekly schedule depositor. That employer must check the appropriate box on line 17 and, if the payroll tax liability for the quarter was $2,500 or more, then that employer must fill out Schedule B (Form 941) and attach it to Form 941 when the payroll tax return is submitted.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
When must an employer file their quarterly 941 payroll tax returns? TaxGuru Payroll 1 06-17-2015 12:35 PM
CA FTB publishes names of top 250 delinquent taxpayers with tax liabilities >$100,000 TaxGuru California 0 08-14-2009 03:52 PM
What U.S. States impose no individual income tax liabilities in 2008? TaxGuru For 2008 0 12-08-2008 10:35 AM
Is it better to do your own payroll tax returns or hire an outside payroll company? Sabby Sole-Proprietorship 1 07-21-2008 01:02 PM
I owe prior year federal income tax liabilities, will my rebate check be affected? TaxGuru For 2008 0 03-11-2008 12:14 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning