Accelerated Deposit Rule Definition

Employers with a tax liability of $100,000 or more in a deposit period are required to make a 941 deposit of the withheld tax funds within one day after the liability occurred. Also known as the $100,000 Next-Day Deposit Rule.

Accelerated Deposit Rule Extended Definition

More commonly known as the “Next-day Deposit Rule,” the accelerated deposit rule applies to employers who accumulate federal taxes of $100,000 or more on any day during a deposit period. These employers must deposit the taxes by the next business day.

Last Updated By

Rachel Blakely-Gray | May 01, 2023

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