How often are federal payroll taxes typically deposited?

Federal payroll taxes are typically deposited according to a schedule determined by the amount of payroll liability that an employer has. This schedule can be either semi-weekly or monthly.

Employers with a larger payroll liability must deposit payroll taxes on a semi-weekly basis. This means deposits are required within specific timeframes depending on when employees are paid, typically within three days of the end of a pay period. On the other hand, smaller employers may qualify for a monthly deposit schedule, which requires deposits to be made by the 15th of the following month.

Understanding this system is essential for compliance with federal regulations, as failing to deposit payroll taxes timely can result in penalties and interest. The choices reflecting weekly, bi-weekly, quarterly, annually, or semi-annually do not align with the actual requirements set forth by the IRS for federal payroll tax deposits, making them unsuitable in this context.