is a legal holiday, the deposit is considered timely if it is
However, once you accumulate at least $100,000 in a
made by the following Monday (if Monday is a business
deposit period, stop accumulating at the end of that day
day).
and begin to accumulate anew on the next day. For exam-
ple, Fir Co. is a semiweekly schedule depositor. On Mon-
Legal holiday. The term “legal holiday” means any legal
day, Fir Co. accumulates taxes of $110,000 and must
holiday in the District of Columbia. Legal holidays for 2012
deposit on Tuesday, the next business day. On Tuesday,
are listed below.
Fir Co. accumulates additional taxes of $30,000. Because
•
the $30,000 is not added to the previous $110,000 and is
January 2—New Year’s Day (observed)
less than $100,000, Fir Co. does not have to deposit the
•
January 16—Birthday of Martin Luther King, Jr.
$30,000 until Friday (following the normal semiweekly
•
February 20—Washington’s Birthday
deposit schedule).
•
April 16—District of Columbia Emancipation Day
If you are a monthly schedule depositor and you
!
accumulate a $100,000 tax liability on any day
•
May 28—Memorial Day
during a month, you become a semiweekly
CAUTION
•
July 4—Independence Day
schedule depositor on the next day and remain so for the
remainder of the calendar year and for the following calen-
•
September 3—Labor Day
dar year.
•
October 8—Columbus Day
Example. Elm, Inc. started its business on May 1, 2012.
•
November 12—Veterans Day (observed)
On May 4, it paid wages for the first time and accumulated
•
a tax liability of $40,000. On Friday, May 11, Elm, Inc. paid
November 22—Thanksgiving Day
wages and accumulated a liability of $60,000, making its
•
December 25—Christmas Day
accumulated Form 941-SS tax liability total $100,000. Elm,
Inc. must deposit $100,000 by Monday, May 14, the next
Application of Monthly and Semiweekly
business day. Because this was the first year of its busi-
ness, the tax liability for its lookback period is considered to
Schedules
be zero, and it would be a monthly schedule depositor
based on the lookback rules. However, because Elm, Inc.
The examples below illustrate the procedure for determin-
accumulated $100,000 on May 11, it became a semi-
ing the deposit date under the two different deposit sched-
weekly schedule depositor on May 12. It will be a semi-
ules.
weekly schedule depositor for the remainder of 2012 and
Monthly schedule example. Spruce Co. is a monthly
for 2013.
schedule depositor with seasonal employees. It paid
wages each Friday during January but did not pay any
Accuracy of Deposits Rule
wages during February. Under the monthly deposit sched-
ule, Spruce Co. must deposit the combined tax liabilities
You are required to deposit 100% of your tax liability on or
for the four January paydays by February 15. Spruce Co.
before the deposit due date. However, penalties will not be
does not have a deposit requirement for February (due by
applied for depositing less than 100% if both of the follow-
March 15) because no wages were paid and, therefore, it
ing conditions are met.
did not have a tax liability for February.
1. Any deposit shortfall does not exceed the greater of
Semiweekly schedule example. Green, Inc. is a semi-
$100 or 2% of the amount of taxes otherwise re-
weekly schedule depositor and pays wages once each
quired to be deposited, and
month on the last Friday of the month. Although Green,
Inc., has a semiweekly deposit schedule, it will deposit just
2. The deposit shortfall is paid or deposited by the
once a month because it pays wages only once a month.
shortfall makeup date as described below.
The deposit, however, will be made under the semiweekly
Makeup date for deposit shortfall:
deposit schedule as follows: Green, Inc.’s tax liability for
the April 27, 2012 (Friday), payday must be deposited by
1. Monthly schedule depositor. Deposit or pay the
May 2, 2012 (Wednesday). Under the semiweekly deposit
shortfall by the due date of the Form 941-SS,
schedule, liabilities for wages paid on Wednesday through
944-SS, or Form 943 for the period in which the
Friday must be deposited by the following Wednesday.
shortfall occurred. You may pay the shortfall with
your return even if the amount is $2,500 or more.
$100,000 Next-Day Deposit Rule
2. Semiweekly schedule depositor. Deposit by the
earlier of:
If you accumulate taxes of $100,000 or more on any day
during a deposit period, you must deposit by the close of
a. The first Wednesday or Friday (whichever comes
the next business day, whether you are a monthly or a
first) that comes on or after the 15th of the month
semiweekly schedule depositor.
following the month in which the shortfall oc-
For purposes of the $100,000 rule, do not continue
curred, or
accumulating taxes after the end of a deposit period. For
b. The return due date for the period in which the
example, if a semiweekly schedule depositor has accumu-
shortfall occurred.
lated taxes of $95,000 on Tuesday and $10,000 on
Wednesday, the $100,000 next-day deposit rule does not
For example, if a semiweekly schedule depositor filing
apply because the $10,000 is accumulated in the next
Form 941-SS has deposit shortfall during July 2012, the
deposit period. Thus, $95,000 must be deposited by Friday
and $10,000 must be deposited by the following
shortfall makeup date is August 15, 2012 (Wednesday).
Wednesday.
However, if the shortfall occurred on the required April 6
Publication 80 (2012)
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