How to determine my deposit schedule?
400 views | Last modified 4/25/2023 3:15:34 AM EST | Added by TaxBandits Team

The IRS states two deposit schedules - i) Monthly ii) Semiweekly. These schedules allow the taxpayers to know the deposit due for social security, medicare, and withheld federal income taxes. According to the respective deposit schedule, the tax deposit day will be assigned. 

To determine your deposit schedule, you have to know the following:

• Determine the Form 941 lookback period
• Sum up the total tax amount in Form 941 for your lookback period.
• With the above two information, you can know whether you are a monthly or semiweekly schedule depositor.

Step 1: Determine the Form 941 lookback period

According to the IRS, the Form 941 lookback period is divided into four quarters for a calendar year. When you report Form 941, choose the correct lookback period to let the IRS know your tax liability for the specific year. For the tax year 2023, the lookback period is "July 1, 2021, to June 30, 2022".

Step 2: Find the total tax amount to be paid for the lookback period

The total tax amount includes a contribution to social security tax, medicare tax, and withheld federal income tax. Now, sum up the tax liability that you have reported in each Form 941 in the lookback period, which gives you the total tax due for the calendar year.

Step 3: Know your deposit schedule

While filing Form 941 in TaxBandits, you have to select your deposit schedule in the Form 941 Page 2 under Part 2. Before you choose, know the available deposit schedules and under which you are categorized using the below information.

Monthly schedule depositor:

• You fall under the monthly schedule depositor if the total tax amount reported on Form 941 for the four quarters of your lookback period is equal to $50000 or less.
• For new employers who have no employees, the total tax liability is zero. And, for all the quarters of the first calendar year, they are monthly schedule depositors.

Selecting a monthly schedule deposit in Form 941 - TaxBandits

In TaxBandits, while you file Form 941, you will be asked to select the deposit schedule in Form 941, Page 2 under Part 2. If you’re a monthly schedule depositor, check the second box in Part 2. Also, enter the tax liability for each month in the quarter and get the quarter's total tax liability. Click Save and Continue to proceed with the Form 914 filing.

Monthly schedule deposit date:

• If you reported taxes of $50,000 or less during the lookback period, you're a monthly schedule depositor, and you generally must deposit your employment taxes on payments made during a given month on or before the 15th day of the following month. 

Semiweekly schedule depositors:

• You fall under the semiweekly schedule depositor if the total tax amount on Form 941 for the four quarters of your lookback period is above $50,000.

Select a semiweekly schedule deposit in Form 941 - TaxBandits

In TaxBandits, while you file Form 941, you will be asked to select the deposit schedule in Form 941 Page 2 under Part 2. If you’re a semiweekly schedule depositor, check the third box in Part 2. Then, click Save and Continue and complete Schedule B and attach it with your Form 941.

Semiweekly schedule deposit date:

• The semiweekly schedule depositor is subjected to deposit the taxes based on the following schedule,
• If the payroll payments are made on Saturday, Sunday, Monday, or Tuesday, deposit the taxes by the following Friday.
• If the payroll payments are made on Wednesday, Thursday, or Friday, deposit the taxes by the following Wednesday.

Note: The semiweekly depositors have to submit Form 941 Schedule B along with Form 941.

Minimum tax liability:

You are categorized under minimum liability if any of the following conditions apply:

• The tax liability is less than $2500
• Net tax liability for the calendar year is less than $2500
• In the current quarter, you have not incurred a $100000 next-day deposit obligation.

Selecting minimum tax liability in TaxBandits

When you file Form 941 in TaxBandits, if you satisfy any one of the conditions for minimum tax liability stated above or Line 12 of Form 941 Page is less than $2500, check the first box in Form 941 Page 2 under Part 2. Also, check the Apply to next return or Send a refund based on your need and continue with the Form 941 filing to transmit to the IRS.