Instructions For Form Ct-1 - 2011 (Page 5 of 8) in pdf

When To Deposit

deposit under the appropriate deposit rules so that you will

not be subject to deposit penalties.

Monthly Schedule Depositor

$100,000 Next-Day Deposit Rule. If you accumulate taxes

of $100,000 or more on any day during a deposit period, you

If you are a monthly schedule depositor, deposit employer

must deposit the taxes by the next business day regardless

and employee Tier I and Tier II taxes accumulated during a

of whether you are a monthly or semiweekly schedule

calendar month by the 15th day of the following month.

depositor.

Example. Employer C is a monthly schedule depositor with

If you are a monthly schedule depositor and you

seasonal employees. C paid wages each Friday during

accumulate $100,000 or more on any one day during the

February but did not pay any wages during March. Under

month, you become a semiweekly schedule depositor on the

the monthly schedule deposit rule, C must deposit the

combined taxes for the February paydays by March 15.

next day for the remainder of the calendar year and for the

C does not have a deposit requirement for March

following year.

(due by April 15) because no wages were paid and,

Once a semiweekly schedule depositor accumulates

therefore, C does not have a tax liability for the month.

$100,000 or more in a deposit period, it must stop

accumulating at the end of that day and begin to accumulate

Semiweekly Schedule Depositor

anew on the next day. The following examples explain this

If you are a semiweekly schedule depositor, use the table

rule.

below to determine when to make deposits.

Example of $100,000 Next-Day Deposit Rule.

Deposit Tier I and Tier II taxes

No later than...

Employer E is a semiweekly schedule depositor. On

for payments made on...

Monday, E accumulates taxes of $110,000 and must deposit

this amount by Tuesday, the next business day. On

Wednesday, Thursday, and/or

The following Wednesday

Tuesday, E accumulates additional taxes of $30,000.

Friday

Because the $30,000 is not added to the previous $110,000,

E must deposit the $30,000 by Friday using the semiweekly

Saturday, Sunday, Monday,

The following Friday

deposit schedule.

and/or Tuesday

Example of $100,000 Next-Day Deposit Rule during

the first year of business. Employer F started its business

Example. Employer D, a semiweekly schedule depositor,

on January 27, 2012. Because this was the first year of its

pays wages on the last Saturday of each month. Although D

business, its Form CT-1 taxes for its lookback period (2010)

is a semiweekly schedule depositor, D will deposit just once

are considered to be zero, and F is a monthly schedule

a month because D pays wages only once a month. The

depositor. On February 1, F paid compensation for the first

deposit, however, will be made under the semiweekly

time and accumulated taxes of $40,000. On February 3, F

deposit schedule as follows: D’s taxes for the January 28,

paid compensation and accumulated taxes of $60,000,

2012 (Saturday), payday must be deposited by February 3,

bringing its total accumulated (undeposited) taxes to

2012 (Friday). Under the semiweekly deposit rule, taxes

$100,000. Because F accumulated $100,000 or more on

arising on Saturday through Tuesday must be deposited by

February 3 (Friday), F must deposit the $100,000 by

the following Friday.

February 6 (Monday), the next business day. F became a

semiweekly schedule depositor on February 4. F will be a

The last day of the calendar year ends the

semiweekly schedule depositor for the rest of 2012 and

semiweekly deposit period and begins a new one.

for 2013.

CAUTION

Example of when $100,000 Next-Day Deposit Rule

Deposits on Business Days Only

does not apply. Employer G, a semiweekly schedule

If a deposit is required to be made on a day that is a

depositor, accumulated taxes of $95,000 on a Tuesday (of a

Saturday, Sunday or legal holiday, it is considered timely if it

Saturday-through-Tuesday deposit period) and accumulated

is made by the close of the next business day. Business

$10,000 on Wednesday (of a Wednesday-through-Friday

days include every day other than Saturday, Sunday, or

deposit period). Because the $10,000 was accumulated in a

legal holidays under section 7503. For example, if a deposit

deposit period different from the one in which the $95,000

is required to be made on Friday and Friday is a legal

was accumulated, the $100,000 Next-Day Deposit Rule

holiday, the deposit will be considered timely if it is made by

does not apply. Thus, G must deposit $95,000 by Friday

the following Monday (if Monday is a business day).

and $10,000 by the following Wednesday.

Semiweekly schedule depositors will always have at least

Electronic Deposit Requirement

3 business days to make a deposit. If any of the 3 weekdays

The IRS has issued regulations under section 6302 which

after the end of a semiweekly period is a legal holiday, you

provide that beginning January 1, 2011, you must deposit all

have 1 additional day to deposit. For example, if you have

depository taxes (such as employment tax, excise tax, and

Form CT-1 taxes accumulated for payments made on Friday

corporate income tax) electronically using the Electronic

and the following Monday is a legal holiday, the deposit

Federal Tax Payment System (EFTPS). Under these

normally due on Wednesday may be made on Thursday

regulations, Forms 8109 and 8109-B, Federal Tax Deposit

(allowing 3 business days to make the deposit).

Coupon, cannot be used after December 31, 2010. For

Exceptions to the Deposit Rules

more information about EFTPS or to enroll in EFTPS, visit

the EFTPS website at

or call

The two exceptions that apply to the above deposit rules are

1-800-555-4477. You can also get Pub. 966, The Secure

the:

•

Way to Pay Your Federal Taxes.

$2,500 Rule, and

•

$100,000 Next-Day Deposit Rule.

Depositing on time. For deposits made by EFTPS to be

$2,500 Rule. If your total Form CT-1 taxes for the year are

on time, you must initiate the deposit by 8 p.m. Eastern time

less than $2,500 and the taxes are fully paid with a timely

the day before the date the deposit is due. If you use a third

filed Form CT-1, no deposits are required. However, if you

party to make deposits on your behalf, they may have

are unsure that you will accumulate less than $2,500,

different cutoff times.

-4-

Instructions for Form CT-1 (2011)

Instructions For Form Ct-1 - 2011 Page 5

Related Articles

Related forms

Related Categories