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