Publication 5258 - Federal Tax Deposits Page 8
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32The ABCs of Federal Tax Deposits
When should you make form 941 tax deposits?
What it means
The easiest way is to make a deposit the same day you make payroll, or anytime
no later than the deposit due date.
lookback period: If
you have filed only
Form 941, the lookback
If your total taxes on Form 941 for the current quarter or the preceding quarter
›
period is a 12-month
are less than $2,500, and you did not incur a $100,000 next-day deposit obli-
period that ends June
gation in the current quarter, you may pay the taxes with the return or deposit
30 of the prior year. If
by the return due date. See Exceptions to Deposit Schedule on page 10.
you filed Form 944 in
If your total taxes on Form 941 are $2,500 or more in both the prior quarter and
›
either of the two previ-
the current quarter, you’ll need to determine which deposit schedule to follow.
ous years, or you are
filing Form 944 in the
When should you make form 944 tax deposits?
current year, the look-
Form 944 is for the smallest employers whose tax liability is below the minimum
back period is the
for making deposits. Deposits are not required if the annual tax is less than $2,500.
second prior calendar
See Instructions for Form 944 instructions if the annual liability exceeds $2,500.
year.
the total tax liability
What's your deposit schedule?
reported during the
To determine your deposit schedule, you need to review the amounts of tax report-
lookback period is used
ed on your earlier Forms 941 and 944. If you are filing Form 944, or if you filed Form
to determine which
944 during either of the previous two years, your "lookback period" for 2017 is the
deposit schedule a
calendar year 2015. If you filed only Forms 941, you can determine your deposit
business uses during
schedule using the "Lookback Period" table below.
the current year:
$50,000 or less – follow
Lookback Period for 2018 Deposits
the Monthly Deposit
Schedule
J
1, 2016
J
30, 2017
uly
through
une
2016
2017
More than $50,000 –
follow the Semiweekly
t
& F
Q
F
& s
Q
hird
ourth
uarters
irst
econd
uarters
Deposit Schedule
7/1/16
9/30/16
1/1/17
3/31/17
through
through
adjustments and
10/1/16
12/31/16
4/1/17
6/30/17
the lookback rule.
through
through
Determine your liability
for the lookback period
based on the tax
If you are a new employer and had no employees during the lookback
liability as reported
period, you are automatically a Monthly Schedule Depositor. Two exceptions to
on your Forms 941
this rule are explained on page 10.
and 944. Adjustments
made on Form 941-X,
After you determine your lookback period, you need to total the taxes reported on
Adjusted Employer's
Forms 941 during this period. Once you determine your total tax during the look-
QUARTERLY Federal
back period, it is easy to determine your deposit schedule:
Tax Return or Claim
for Refund, and Form
If total taxes are $50,000 or less, you make monthly schedule deposits.
›
944-X, Adjusted
Employer's ANNUAL
If total taxes are greater than $50,000 you make semiweekly schedule deposits.
›
Federal Tax Return or
Claim for Refund, do
not affect the amount of
tax liability for previous
periods for purposes of
the lookback rule.
8
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