Depositing Taxes Flashcards
What is the lookback period for 2014 for a Form 941?
7/1/2012-6/30/13
3rd Qtr., 4th Qtr. of 2012
1st Qtr., 2nd Qtr. Of 2013
How do you know if you need to make deposit for 941?
Determine from the total taxes reported on your Forms 941, line 10, in a 4-quarter lookback period. If you reported $50,000 or less of taxes for the lookback period, you are a monthly schedule depositor; if you reported more than $50,000, you are a semiweekly schedule depositor.
When do you make a payment with Form 941 or Form 944 instead of depositing, without incurring a penalty?
Your Form 941 total tax liability for either the current quarter or the preceding quarter is less than $2,500, and you did not incur a $100,000 next-day deposit obligation during the current quarter.
You are a monthly schedule depositor and make a payment in accordance with the Accuracy of Deposits Rule discussed later in this section. This payment may be $2,500 or more.
What is the lookback period for 2014 for a Form 944?
Determined from the total taxes reported during the second preceding calendar year (either on your Form 941 for all 4 quarters of that year or your Form 944 for that year). The lookback period for 2014 for a Form 944 filer is calendar year 2012.
What is the lookback period for 2014 for a Form 945?
Determined from the total taxes reported on line 3 of your Form 945 for the second preceding calendar year. The lookback period for 2014 for a Form 945 filer is calendar year 2012.
Semiweekly Deposit Schedule
Deposit employment taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Deposit taxes for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday.
How should a new er. deposit tax?
Monthly
Additional form to report for the semiweekly schedule depositors
Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors, and submit it with Form 941. If you file Form 944 and are a semiweekly schedule depositor, complete Form 945-A, Annual Record of Federal Tax Liability, and submit it with your return
What do you do If you have more than one pay date during a semiweekly period and the pay dates fall in different calendar quarters?
Make separate deposits for the separate liabilities.
Due date for the monthly deposit
15th day of the following month
Legal holidays for 2014
January 1— New Year’s Day
January 20— Birthday of Martin Luther King, Jr.
February 17— Washington’s Birthday
April 16— District of Columbia Emancipation Day
May 26— Memorial Day
July 4— Independence Day
September 1— Labor Day
October 13— Columbus Day
November 11— Veterans’ Day
November 27— Thanksgiving Day
December 25— Christmas Day
$100,000 Next-Day Deposit Rule
If you accumulate $100,000 or more in taxes on any day, you must deposit the tax by the next business day, whether you are a monthly or semiweekly schedule depositor.
What happens If you are a monthly schedule depositor and accumulate a $100,000 tax liability on any day?
You become a semiweekly schedule depositor on the next day and remain so for at least the rest of the calendar year and for the following calendar year
Penalties will not be applied for depositing less than 100% if 2 of the following conditions are met.
Any deposit shortfall does not exceed the greater of $100 or 2% of the amount of taxes otherwise required to be deposited.
The deposit shortfall is paid or deposited by the shortfall makeup date
“Averaged” failure-to-deposit penalty for monthly.
penalty of 2% to 10% if you are a monthly schedule depositor and did not properly complete Form 941, line 14, when your tax liability shown on Form 941, line 10, equaled or exceeded $2,500.
