Monthly vs semiweekly payroll tax deposits: the IRS rules accountants track for every client
Every payroll client has its own federal deposit schedule. Here is how the IRS decides which one applies.
| Monthly depositor | $50,000 or less reported in the lookback period |
|---|---|
| Semiweekly depositor | More than $50,000 reported in the lookback period |
| Monthly due date | 15th of the following month |
| Semiweekly due dates | Wed–Fri payday: following Wednesday; Sat–Tue payday: following Friday |
| Next-day rule | $100,000 or more accumulated on any day |
| Small-employer exception | Liability under $2,500 for the quarter can be paid with a timely Form 941 |
| How deposits are made | Electronic funds transfer, for example EFTPS |
| Source | IRS Topic No. 757 |
How does the IRS decide the deposit schedule?
The schedule for the year depends on the employment taxes reported during the lookback period. If the total was $50,000 or less, the employer deposits monthly; if it was more, the employer deposits semiweekly. The schedule is set by this test, not by how often the client runs payroll.
When are monthly deposits due?
Taxes on wages paid during a month are due by the 15th of the following month. Wages paid in January, for example, are due by February 15. If the 15th falls on a weekend or a legal holiday in the District of Columbia, the deadline moves to the next business day.
When are semiweekly deposits due?
For paydays on Wednesday, Thursday or Friday, deposit by the following Wednesday. For paydays on Saturday, Sunday, Monday or Tuesday, deposit by the following Friday.
What is the $100,000 next-day rule?
If an employer accumulates $100,000 or more of taxes on any day during a deposit period, the deposit is due by the next business day, whichever schedule the employer is on. The employer then becomes a semiweekly depositor for the rest of that year and the next.
What is the $2,500 exception?
If the employment tax liability for the current or preceding quarter is less than $2,500, the tax can be paid with a timely filed Form 941 instead of being deposited, provided no $100,000 next-day obligation arises during the quarter.
How do firms keep track across many clients?
With a handful of clients, a calendar works. With dozens, each on its own federal and state schedule and pay frequency, it is easy to miss one. Record each client’s federal and state deposit rule once, generate the due dates from it, and work from one list of deposits due soon across every client. At quarter end, compare the deposits made with the liability reported on Form 941.
Frequently asked questions
Does running payroll weekly make a client a semiweekly depositor?
No. The deposit schedule comes from the lookback-period test, not from the payroll frequency.
Are state deposit rules the same?
No. Each state sets its own withholding deposit rules, so track them per client alongside the federal schedule.
Is this tax advice?
No. This is a summary of IRS guidance for convenience; check IRS Topic No. 757 and Publication 15 for the full rules.