When Do I Have to Deposit Payroll Taxes?

By Bill Stilwell · Last reviewed October 17, 2026

The short answer

Federal payroll taxes must be deposited electronically on a monthly or semiweekly schedule. Your schedule depends on how much payroll tax you reported in a past 12-month “lookback period.” If it was $50,000 or less, you’re a monthly depositor. If it was more, you’re semiweekly. Very small employers may be able to pay with the quarterly return instead.

What this means

Each payday creates federal payroll taxes: federal income tax you withheld, plus Social Security and Medicare taxes from both the employee and the business. The Internal Revenue Service (IRS) explains the rules in Publication 15 and Notice 931.

How you deposit. All federal tax deposits must be made by electronic funds transfer. Options include the Electronic Federal Tax Payment System (EFTPS), IRS Direct Pay, your IRS business tax account, or a payroll service paying for you.
Lookback period. For Form 941 filers, it’s the four quarters from July 1 two years back through June 30 of last year.
Monthly depositor. $50,000 or less in the lookback period. Deposit each month’s taxes by the 15th of the next month. New employers usually start here.
Semiweekly depositor. More than $50,000. Payday on Wednesday, Thursday, or Friday: deposit by the next Wednesday. Payday on Saturday through Tuesday: deposit by the next Friday.
$100,000 next-day rule. If you build up $100,000 or more in taxes in a deposit period, deposit by the next business day. A monthly depositor who hits this becomes semiweekly.
$2,500 quarterly rule. If your tax for the current or prior quarter is under $2,500, and you didn’t trigger the next-day rule, you may pay with your timely filed Form 941.
Federal unemployment tax (FUTA). Deposit when what you owe is over $500 at the end of a quarter, by the last day of the next month.

The Form 941 quarterly returns are due April 30, July 31, October 31, and January 31.

This page also covers payroll tax deposits from Part 10.9 (10.9.5) and Part 23 (23.5.6). State deposits follow each state’s own schedule (see 10.3.2 State Withholding).

Made-up example: Harbor Light Physical Therapy runs payroll every other Friday. It’s a new employer, so it’s a monthly depositor. Its payroll service deposits each month’s taxes through EFTPS by the 15th of the next month, and the owner checks the confirmations in her IRS business account each quarter.

Why it matters

Late deposits bring a failure-to-deposit penalty.
Owners can be personally liable. The IRS can charge the Trust Fund Recovery Penalty to anyone responsible who willfully fails to pay withheld taxes. It equals the unpaid trust fund tax.
Payroll services make mistakes too. The business still owes the tax if the service doesn’t pay it.

Who this applies to

Every business that pays employees. If you only pay contractors, you don’t make payroll deposits, but you may need to file information returns (see 10.3.5 Information Returns).

How to do it

Enroll in EFTPS or set up your IRS business tax account so you can see payments.
Figure your schedule each year from your lookback period. The IRS may also send a notice.
Set deposit dates on your calendar (see 10.9.1 Financial Calendar).
Keep payroll tax money separate so it’s there when due (see 10.4.3 Payroll and Savings Accounts).
Deposit on time, or confirm your payroll service did.
Watch for the $100,000 next-day rule after big paydays like bonuses.
File Form 941 each quarter and Form 940 each year, and match them to your deposits.
Check your IRS account each quarter to confirm every deposit posted.

What proof to keep

Deposit confirmations with dates and amounts
Filed Forms 941 and 940
Payroll registers for each payday
Your schedule notes and any IRS notices

Common mistakes

Choosing a schedule by how often you pay people. The lookback amount decides, not the payday.
Mailing a check. Deposits must be electronic.
Using payroll tax money for other bills.
Never checking the IRS account to confirm the payroll service paid.
Missing the next-day rule after a big payroll.

When to get help from a pro

Payroll professional or certified public accountant (CPA): when you first hire, if you get a penalty notice, or if payroll grows fast. Questions to ask:

Which deposit schedule am I on this year?
How can I confirm my payroll service made every deposit?
What should I do if I missed a deposit?

Bill’s note

[Bill: add a short note. For example, how you check that payroll deposits post, or a business owner you know who got a penalty notice because a payroll service slipped.]

How I did this for SiteSmarty

[Date I did this:]
[What I actually did, step by step: how I set up EFTPS or the IRS business account for SiteSmarty and confirmed deposits]
[What it cost and how long it took:]
[What surprised me or what I’d do differently:]
[Screenshot or photo to add, with private info blurred: payment confirmation]
[Result so far:]

Questions people ask

Am I a monthly or semiweekly depositor? Monthly if you reported $50,000 or less in the lookback period. Semiweekly if more. New employers usually start as monthly.

How do I make deposits? Electronically, through EFTPS, IRS Direct Pay, your IRS business tax account, or a payroll service.

What is the next-day rule? If you build up $100,000 or more in a deposit period, deposit by the next business day.

Can I pay with my quarterly return? If your quarterly tax is under $2,500 for the current or prior quarter and you didn’t trigger the next-day rule, you may.

Audit check

Question: Are all federal payroll taxes deposited electronically, on the right schedule, and matched to the quarterly and yearly returns?
Pass looks like: Schedule confirmed each year. Every deposit on time and visible in the IRS account. Forms 941 and 940 match deposits.
Fail looks like: Late deposits. Wrong schedule. Paper checks. No one checking the payroll service.
Evidence to collect: Deposit confirmations, payroll registers, Forms 941 and 940, and IRS account transcripts.

Where this fits

Do this first: 10.3.3 State Unemployment

Do this next: 10.3.5 Information Returns

Sources

IRS, "Notice 931, Deposit Requirements for Employment Taxes" (checked October 17, 2026)
IRS, "Publication 15 (2026), (Circular E), Employer's Tax Guide" (checked October 17, 2026)
IRS, "Employment tax due dates" (checked October 17, 2026)
IRS, "Employment taxes and the Trust Fund Recovery Penalty (TFRP)" (checked October 17, 2026)

This page explains general rules and Bill's own experience. It is not legal, tax, or insurance advice. Talk to a qualified professional about your situation.