Federal payroll taxes are due on two tracks that run in parallel. Deposits of withheld income tax, Social Security, and Medicare go to the IRS either monthly or semi-weekly, depending on your prior liability: monthly depositors pay by the 15th of the following month, and semi-weekly depositors pay within a few business days of each payday. On top of deposits, you file Form 941 by the last day of the month after each quarter ends, and the annual forms (Form 940, Form 944 if assigned, and W-2s) are due January 31.
How the IRS Decides Whether You Deposit Monthly or Semi-Weekly
Your schedule for a given calendar year is set by a “lookback period.” For 2026, the lookback period runs from July 1, 2024 through June 30, 2025.1Internal Revenue Service. Instructions for Form 941 (03/2026) Add up the total tax liability you reported on your four Forms 941 covering those quarters:
- $50,000 or less in the lookback period: you are a monthly depositor for 2026.
- More than $50,000: you are a semi-weekly depositor for 2026.
New employers have no lookback history, so the IRS treats their prior liability as zero and starts them as monthly depositors in their first calendar year.2Internal Revenue Service. Notice 931, Deposit Requirements for Employment Taxes The $100,000 next-day rule, covered below, can override that assignment immediately.
Monthly Depositor Deadline
If you are a monthly depositor, combine every dollar of payroll tax liability from a given calendar month and deposit it by the 15th day of the next month. Taxes on wages paid in July are due by August 15; taxes on November wages are due by December 15.3Internal Revenue Service. Employment Tax Due Dates
Semi-Weekly Depositor Deadlines
Semi-weekly depositors work off the day of the week payday falls on:3Internal Revenue Service. Employment Tax Due Dates
- Payday on Wednesday, Thursday, or Friday: deposit by the following Wednesday.
- Payday on Saturday, Sunday, Monday, or Tuesday: deposit by the following Friday.
If a deposit due date falls on a weekend or federal holiday, it moves to the next business day.3Internal Revenue Service. Employment Tax Due Dates One timing trap worth knowing: electronic deposits through EFTPS have to be initiated by 8:00 p.m. Eastern time the day before the due date to count as on time.4Internal Revenue Service. What Are FTDs and Why Are They Important Submitting on the morning of the deadline is already late.
The $100,000 Next-Day Rule
If your accumulated payroll tax liability reaches $100,000 or more on any single day during a deposit period, you must deposit the full amount by the next business day. This applies whether you are normally a monthly or semi-weekly depositor.5Internal Revenue Service. Employment Tax Due Dates – Section: Next-Day Deposit Rule A monthly depositor who hits that threshold is also pushed onto the semi-weekly schedule for the remainder of the calendar year and for the next calendar year.4Internal Revenue Service. What Are FTDs and Why Are They Important
When You Can Skip Deposits and Pay With the Return
Very small employers may not need to deposit at all. If your total tax liability for the current quarter (or the prior quarter) is less than $2,500, you can pay the full amount when you file Form 941 instead of making separate deposits.6Internal Revenue Service. Publication 15 (2026), (Circular E), Employers Tax Guide This exception doesn’t apply if you triggered the $100,000 next-day rule during the quarter.
Quarterly Form 941 Deadlines
Most employers file Form 941 each quarter to report wages paid, federal income tax withheld, and Social Security and Medicare taxes.7Internal Revenue Service. About Form 941, Employers Quarterly Federal Tax Return It is due by the last day of the month after each quarter closes:8Internal Revenue Service. Instructions for Form 941
- Quarter 1 (January–March): April 30
- Quarter 2 (April–June): July 31
- Quarter 3 (July–September): October 31
- Quarter 4 (October–December): January 31
If you made every required deposit for the quarter on time and in full, you get an extra 10 calendar days to file the return. A first-quarter return under that rule can be filed as late as May 10 instead of April 30.8Internal Revenue Service. Instructions for Form 941 Note that the extension applies to the return, not to the deposits themselves.
Annual Form 944 for the Smallest Employers
If your total annual liability for Social Security, Medicare, and withheld income taxes is $1,000 or less, you may qualify to file Form 944 once a year rather than Form 941 every quarter.9Internal Revenue Service. About Form 944, Employers Annual Federal Tax Return You cannot switch on your own. The IRS has to send you written notice that you are eligible.10Internal Revenue Service. Certain Taxpayers May File Their Employment Taxes Annually
Form 944 is due January 31 after the end of the calendar year. If you deposited all taxes on time, you have until February 10 to file.10Internal Revenue Service. Certain Taxpayers May File Their Employment Taxes Annually
Federal Unemployment Tax: Quarterly Deposits and an Annual Return
FUTA runs on its own calendar. Deposit the cumulative FUTA liability by the last day of the month after a quarter ends, but only once the running total crosses $500. If liability for a quarter is $500 or less, carry it forward to the next quarter until the threshold is reached.11Internal Revenue Service. Topic No. 759, Form 940 – Employers Annual Federal Unemployment (FUTA) Tax Return Any year-end balance of $500 or less can be paid with Form 940.
Form 940, the annual FUTA return, is due January 31. That same January 31 deadline covers Forms W-2 to employees and to the Social Security Administration along with Form W-3.3Internal Revenue Service. Employment Tax Due Dates
How to Deposit
All federal payroll tax deposits must be made by electronic funds transfer.12Internal Revenue Service. Depositing and Reporting Employment Taxes Free IRS options include EFTPS, Direct Pay for businesses, and your IRS business tax account. You can also arrange ACH credit or same-day wire transfers through your bank, though your bank may charge for those services.13Electronic Federal Tax Payment System. Welcome to EFTPS Online
EFTPS enrollment takes time. After you submit your information, the IRS mails a PIN to your address of record, which takes five to seven business days.13Electronic Federal Tax Payment System. Welcome to EFTPS Online New employers should enroll shortly after receiving their EIN so the first deposit is not held up waiting for a PIN. Every payment produces a confirmation number; keep it as proof the deposit was initiated on time.
What a Late Deposit Costs
The IRS charges a failure-to-deposit penalty that climbs the later the payment is. The tiers replace one another rather than stacking:14Internal Revenue Service. Failure to Deposit Penalty
- 1 to 5 days late: 2% of the unpaid deposit.
- 6 to 15 days late: 5%.
- More than 15 days late: 10%.
- More than 10 days after the first IRS notice, or upon a demand for immediate payment: 15%.
A deposit that is 12 days late draws a flat 5%, not 2% plus 5%.14Internal Revenue Service. Failure to Deposit Penalty One further warning on the withheld portion: federal income tax, Social Security, and Medicare withheld from paychecks are trust fund taxes, and a responsible person who willfully fails to pay them over can be held personally liable for 100% of the unpaid amount under the Trust Fund Recovery Penalty.15Office of the Law Revision Counsel. 26 US Code 6672 – Failure to Collect and Pay Over Tax, or Attempt to Evade or Defeat Tax That liability follows the individual, not just the business.