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depositing and reporting employment taxes

When to Deposit and Report Employment Taxes

You’ve figured out how much to withhold from employee paychecks. But, what do you do with the money you withhold?

You need to report and send employment taxes to government tax agencies. So, when do you do those things?

The information for depositing and reporting employment taxes is below.

Depositing and reporting employment taxes

Here is information on employment tax due dates for depositing and reporting, including federal income tax, Social Security and Medicare taxes, and FUTA. Be careful: An employment tax can have a different deadline for depositing and reporting.

Federal income tax withholding

Depositing

So when are federal payroll taxes dueFor federal income tax withholding, you will make deposits either monthly or semiweekly. You determine your depositing frequency before the beginning of each year. Your depositing schedule is based on your total reported tax liability on Form 941 during a four-quarter IRS lookback period.

If you reported $50,000 or less in taxes during the lookback period, you are a monthly depositor. If you reported more than $50,000 in taxes, you are a semiweekly depositor. This total tax liability includes federal income tax, Social Security tax, and Medicare tax.

If you run a new business, you will automatically be a monthly depositor for your first year.

Monthly deposits are due on the 15th day of the following month.

Semiweekly depositors should follow the table below:

Payday falls on: Deposit taxes by:
Wednesday, Thursday, Friday The following Wednesday
Saturday, Sunday, Monday, Tuesday The following Friday

Your deposit schedule can change from year to year, so make sure you carefully examine the lookback period.

For more information, see the section on depositing taxes in Publication 15.

To deposit federal income tax, you must make an electronic funds transfer using EFTPS, a tax professional, or a payroll tax filing service.

Reporting

You should report federal income tax withholding on Form 941. You need to file a Form 941 each quarter. The form is due on the last day of the month following each quarter.

Quarter: Form 941 due date:
Quarter 1 April 30
Quarter 2 July 31
Quarter 3 October 31
Quarter 4 January 31

Social Security and Medicare taxes (FICA)

Depositing

To deposit Social Security and Medicare taxes (FICA), you will follow the same depositing process that you use for depositing federal income tax.

With FICA, make sure you deposit both the employee and the employer portions of the taxes. Not depositing the full amount can result in penalties.

Reporting

You need to report Social Security and Medicare taxes on Form 941, along with the federal income taxes. You need to submit a Form 941 every quarter. The due dates are listed above in the federal income tax reporting section.

FUTA tax

Depositing

Only you pay FUTA tax. You will not withhold FUTA tax from employee wages.

You will deposit FUTA tax on a quarterly basis.

If your FUTA tax liability is $500 or less during a quarter, you do not have to deposit the tax. You can carry your liability over to the next quarter.

When your FUTA tax liability reaches more than $500 during a quarter (including anything you carried over from the previous quarter), you must make a deposit.

You will deposit FUTA tax by electronic funds transfer. You can use EFTPS, a tax professional, or a payroll service.

The FUTA tax deposit is due by the end of the month following the quarter.

Quarter: FUTA tax deposit due date:
Quarter 1 April 30
Quarter 2 July 31
Quarter 3 October 31
Quarter 4 January 31

Reporting

Use Form 940 to report FUTA tax. Form 940 is due by January 31 each year. If you made all your deposits on time, you have 10 extra days to submit the form.

Other employment taxes

For other employment taxes—such as SUTA, state income tax, or local income tax—contact your state or local tax agency.

Do you like depositing and reporting employment taxes? Probably not. That’s why you should try Patriot’s Full Service online payroll solution. We’ll take care of the deposits and reports for you, accuracy guaranteed. Get a free trial today!

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