What is the Lookback period?

Last modified 9/16/2024 9:34:50 AM EST

The look-back period is the time frame used to examine the employer's total tax liability to determine whether the employer opts for semi-weekly or monthly deposits. It can be reported during a specific period, typically for every quarter or a year. 

The IRS uses a two-year lookback period(July-June) if the employer's tax liability is less than $50,000, using a semi-weekly deposit schedule. If the employer's tax liability is more than $50,000, make a monthly deposit schedule.