M8-Reporting Taxes and Wages

Question 1

Payroll Tax Deposit Schedules

Answer 1

<= $50,000* — due monthly
> $50,000 —due semi-weekly

• Accumulated payroll taxes reported on Form 941 in the 4 Quarters of the lookback period

Question 2

Federal W/H Deposit due date - monthly depositor

Answer 2

15th of following month

Question 3

Federal W/H Deposit due date-semi weekly depositor

Answer 3

Paydates — Due
Sat-Tues — Friday
Wed.-Fri — following Weds.

Note: If any semiweekly period crosses two quarters with liabilities incurred in each quarter, the employer must initiate two deposits – one for each quarter’s liability.

Question 4

Fed. Tax Deposit Lookback period

Answer 4

For any year, the lookback period
for determining the W/H Deposit Schedule
is the four quarters from
July 1- June 30 of the previous year

Question 5

Fed. W/H Deposit filing exception-

Annual

Answer 5

An employer may deposit W/H Annually

• history of annual employment taxes of less than $1,000
• designated by the IRS to file Form 944, Employer’s Annual Tax Return,
• Taxes are due with Form 944 or deposit the taxes no later than January 31.

Question 6

Fed. W/H Deposit filing exception-

Quarterly

Answer 6

If an employer

• accumulates < $2,500 of total tax liability during a quarter or in the preceding quarter
• no payments are required until a quarterly tax return is filed.

However, if an employer is unsure that the liability will be less than $2,500, it would be prudent to deposit in accordance with the monthly depositor rules. This avoids any penalties in case the liability does go over the $2,500 limit.

Question 7

Fed. W/H Deposit filing exception-

One Day

Answer 7

If the total accumulated W/H tax >= $100,000 or more on any day during a deposit period (monthly or semiweekly), an employer is required to deposit it by the next business day.

If a monthly depositor is required to make a next-day deposit, it automatically becomes
a semiweekly depositor for the remainder of that year and the next year.

Also, once an employer has accumulated at least $100,000 in a deposit period, the employer must stop accumulating at the end of that day and begin to accumulate anew the next day.

Question 8

Fed. W/H Due Dates
&
Legal holidays

Answer 8

Monthly and one-day depositors—by close of the next business day after a holiday.

__

Semiweekly depositor — at least 3 business days in which to deposit the amount.

Ex: semiweekly with Friday payroll will have until the following Thursday to deposit taxes if the Monday, Tuesday, or Wednesday following payday is a holiday and not a business day.