Semiweekly Depositor: Federal Tax Deposit Rules
Understand the requirements of the semiweekly federal tax deposit schedule, including the specific timing and procedures needed to ensure compliance.
Employers are responsible for withholding federal income, Social Security, and Medicare taxes from employee paychecks. These withheld funds, along with the employer’s share of Social Security and Medicare taxes, must be paid to the U.S. Treasury. The Internal Revenue Service (IRS) establishes a deposit schedule that dictates the frequency of these payments.
The two primary schedules are monthly and semiweekly, and an employer’s adherence to the correct one is a component of payroll tax compliance. The specific schedule an employer must follow is not a matter of choice but is determined by their past tax liabilities.
Determining Your Deposit Schedule
The IRS determines an employer’s deposit schedule for a calendar year by examining their total tax liability during a “lookback period.” This period covers the four quarters from July 1 of the second preceding year to June 30 of the prior year. For example, the lookback period for the 2025 calendar year is July 1, 2023, to June 30, 2024. This review is based on the total employment taxes reported on quarterly Form 941 filings.
If an employer reported more than $50,000 in total taxes during the lookback period, they are a semiweekly depositor for the entire current calendar year. Conversely, if the total was $50,000 or less, the employer follows a monthly schedule.
New businesses have no lookback period and are designated as monthly depositors for their first calendar year of operation.
Semiweekly Deposit Deadlines
A semiweekly depositor’s payment schedule is tied directly to their payroll dates and is split into two deposit periods each week. The day of the week that employees receive their pay determines the deadline for depositing the associated employment taxes.
For paydays that occur on a Wednesday, Thursday, or Friday, the employer must deposit the accumulated taxes by the following Wednesday. For instance, if a company pays its employees on a Friday, the tax deposit for that payroll is due no later than the next Wednesday.
For paydays on a Saturday, Sunday, Monday, or Tuesday, the tax deposit is due by the following Friday. If a deposit deadline falls on a legal holiday, the due date is extended to the next business day.
The $100,000 Next-Day Deposit Rule
A special rule overrides standard schedules when a large tax liability accumulates. If an employer’s total accumulated employment tax liability reaches $100,000 or more on any day, the deposit is due by the close of the next business day. This rule applies to all employers, regardless of their regular schedule.
For example, if a $60,000 liability arises on Monday and another $50,000 on Tuesday, the total $110,000 must be deposited by Wednesday. Once the threshold is met, you stop accumulating and begin a new accumulation the next day.
Triggering this rule, even once, automatically converts an employer to a semiweekly depositor for the rest of the current year and for the entire following calendar year.
How to Make Federal Tax Deposits
The IRS requires all federal tax deposits be made via electronic funds transfer. The primary method is the Electronic Federal Tax Payment System (EFTPS), a free online service from the U.S. Department of the Treasury that is available 24/7.
To use the system, a business must first enroll on the EFTPS website. The process requires basic information like the Employer Identification Number (EIN), business name, address, and bank account details. After enrolling, the IRS mails a Personal Identification Number (PIN) to the business, which is used to activate the service and create a password.
To make a payment, the user logs into their EFTPS account and enters the tax form, tax period, and payment amount. Payments can be scheduled up to 365 days in advance, and a confirmation number is provided for each transaction.
Reconciling Deposits with Form 941
At the end of each quarter, employers reconcile their tax deposits with their total tax liability by filing Form 941, the Employer’s QUARTERLY Federal Tax Return. Semiweekly depositors have an additional requirement to file Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors, along with Form 941.
On Schedule B, the employer must list the total tax liability, not the deposit amount, for each day of the quarter. The IRS uses this schedule to verify that deposits were made on time.
The total liability reported on Schedule B must exactly match the total taxes reported on Form 941, line 12. The sum of all deposits made via EFTPS should cover this total liability, and any discrepancies can trigger failure-to-deposit penalties.