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  An employer must know when to deposit payroll taxes to avoid costly penalties. The due date for submitting payroll taxes is determined at the beginning of each calendar year.
  
  

Form 941 Payers

• Deposits of Social Security, Medicare and withheld income taxes have two schedules---monthly and semiweekly. The correct deposit schedule is based upon the total of these taxes reported on Form 941 in the past.
  
  The past period is comprised of the four quarters from the preceding July 1 through June 30. For example, the deposit schedule for an employer in 2010 is based upon the total taxes on Form 941 for the quarters from July 1, 2008 through June 30, 2009. An employer should make deposits each month if the total combined tax for the quarters was $50,000 or less. If the total was more than $50,000 of taxes for the four quarters, the employer should make deposits semiweekly. All new employers are monthly depositors because they do not have past periods to evaluate.
  
  

Form 944 Payers

• If an employer is notified that he may file Form 944 annually instead of Form 941 quarterly, there is a different past period to examine. An employer who may file Form 944 in the current year---or was permitted to file that form in either of the preceding two years---should evaluate the Social Security, Medicare, and withheld income taxes paid in the four quarters of the calendar year two years ago. For example, the deposit schedule for such an employer in 2008 was based upon the total taxes in the four quarters of calendar year 2006. The employer should deposit monthly if the total tax was $50,000 or less. If the total was more than $50,000 of tax, the employer should deposit semiweekly.
  
  

Deposit Dates

• Monthly deposits are due on the 15th day of the month following the month that the payroll taxes were accumulated. On the semiweekly deposit schedule, employment taxes for payroll dates on a Wednesday, Thursday, and Friday are deposited by the following Wednesday. Semiweekly depositors with payroll dates on Saturday, Sunday, Monday and Tuesday, make deposits by the following Friday. If a deposit is required on a non-banking day, make the deposit on the next banking day. Non-banking days include federal and state bank holidays plus Saturdays and Sundays.
  
  

$100,000 Rule

• An employer accumulating more than $100,000 of total payroll tax liability as of any day during a single deposit period must deposit by the next banking day. Accumulating begins anew on the next day.
  
  

Federal Unemployment Tax

• If federal unemployment tax accumulated for pay periods in any calendar quarter is $500 or less, no deposit of this tax is required. Instead, the balance is carried forward to the next quarter. When the federal unemployment tax accumulated for any calendar quarter is over $500 (including any amount carried forward from an earlier quarter), a deposit of the tax is required. Deposit Federal unemployment tax by the last day of the first month following the end of the quarter. If the due date for making a deposit falls on a Saturday, Sunday or bank holiday, deposit it on the next banking day.