Publication 5258 - Federal Tax Deposits Page 26
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32The ABCs of Federal Tax Deposits
2.
The correct answer is B, the Monthly Schedule. Since the total tax in the look-
back period was less than $50,000, the Monthly Schedule would be followed.
Taxes may only be remitted with a return if the total tax for the quarter was
under $2,500. The Semiweekly Schedule would be used if the total tax during
the lookback period was more than $50,000.
3.
The correct answer is B, the Monthly Schedule. Their total tax for the quarter is
more than $2,500, so the tax deposits must be made. If an employer did not
have any employees during the lookback period, their total tax for that time
was -0-. A new employer follows the Monthly Schedule for deposits unless they
meet the $100,000 rule. (See page 6.)
practical exercise 3, page 20
1.
The correct answer is $3,030. The tax deposit due would be the total of the
income tax withheld of $1,500, the employees’ withheld FICA tax of $765, and
the employer’s share of FICA tax of $765.
practical exercise 4, page 22
1.
True. If the tax is less than $2,500, the tax may be paid with the return or
deposited by the return due date. If there is $2,500 or more in total tax in the
current quarter and the prior quarter, the employer must follow the Monthly or
Semiweekly Schedule for deposits.
2.
True. There is a four step penalty for late deposits, from 2% to 15%, depending
on how late the deposit is made.
3.
False. The penalty is 10% if the deposit is 16 or more days late, but has been
deposited before 10 days after the employer receives a bill. If the deposit is
made earlier, the penalty is smaller. If the deposit is made 10 days after the
employer receives a bill for the unpaid tax, the penalty increases to 15%.
4.
True. There are late filing and late payment penalties in addition to late depos-
it penalties that can be charged if returns are not timely.
5.
False. If the prior quarter tax is less than $2,500, and the current quarter does
not have a tax liability that reached $100,000 or more within a deposit period,
the taxpayer may pay the tax with a timely filed tax return, or deposit by the
due date.
26
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