When Are Federal Withholding Taxes Due?

Withholding taxes are payments collected by one party on behalf of another and then remitted to the government. These amounts are not additional taxes, but rather a method for the government to collect taxes that are already owed by individuals or entities throughout the year. This system helps ensure a steady flow of tax revenue and simplifies the tax payment process for the ultimate taxpayer.

Federal Payroll Tax Deposit Schedules

Employers are responsible for withholding federal income tax, Social Security tax, and Medicare tax from their employees’ wages. These withheld amounts, along with the employer’s share of Social Security and Medicare taxes, must be deposited with the Internal Revenue Service (IRS) according to specific schedules. The IRS outlines these requirements in Publication 15.

The deposit schedule an employer must follow is determined by their total tax liability during a “lookback period,” which is the four quarters preceding the current calendar year. Employers are generally assigned either a monthly or semi-weekly deposit schedule.

A monthly deposit schedule applies if the total tax liability reported during the lookback period was $50,000 or less. Under this schedule, employment taxes for payments made during a calendar month are due by the 15th day of the following month. New employers are typically monthly depositors for their first year unless a specific rule triggers a different schedule.

A semi-weekly deposit schedule applies if the total tax liability during the lookback period exceeded $50,000. Under this schedule, the deposit due date depends on the payday. For wages paid on a Wednesday, Thursday, or Friday, the deposit is due by the following Wednesday. For wages paid on a Saturday, Sunday, Monday, or Tuesday, the deposit is due by the following Friday.

The “$100,000 Next-Day Deposit Rule” applies regardless of the assigned schedule. If an employer accumulates $100,000 or more in federal income tax, Social Security, and Medicare taxes on any day during a deposit period, they must deposit those taxes by the next business day. If a monthly depositor triggers this rule, they automatically become a semi-weekly depositor for the remainder of the current calendar year and for the entire following calendar year.

Federal Payroll Tax Reporting Deadlines

Beyond depositing withheld taxes, employers must also report their payroll tax liabilities to the IRS. These reporting deadlines are distinct from deposit deadlines. The primary form for reporting federal payroll taxes is Form 941, “Employer’s QUARTERLY Federal Tax Return.”

Form 941 is used to report federal income tax withheld from employees’ wages, along with Social Security and Medicare taxes for a given quarter. The quarterly due dates for filing Form 941 are: April 30 for the first quarter (January-March), July 31 for the second quarter (April-June), October 31 for the third quarter (July-September), and January 31 of the following year for the fourth quarter (October-December). If all required deposits for the quarter were made on time, employers generally receive an additional 10 calendar days to file the return.

Another important annual reporting form is Form 940, “Employer’s Annual Federal Unemployment (FUTA) Tax Return.” This form reports the federal unemployment taxes paid by the employer. The annual due date for filing Form 940 is January 31 of the following year. Similar to Form 941, if all FUTA tax deposits were made on time throughout the year, the filing deadline for Form 940 is extended by 10 calendar days.

For small employers, the IRS offers Form 944, “Employer’s ANNUAL Federal Tax Return.” This form allows qualifying employers to file and pay these taxes once a year instead of quarterly. The annual due date for Form 944 is January 31 of the following year. If all taxes were deposited on time, the filing deadline extends to February 10.

Other Federal Withholding Tax Deadlines

Federal withholding requirements extend beyond traditional payroll taxes to other types of payments. Two common examples include backup withholding and withholding on payments to non-resident aliens and foreign entities. These also have specific deposit and reporting deadlines.

Backup withholding applies to certain payments, such as interest, dividends, and other reportable income, when the payee fails to provide a correct taxpayer identification number (TIN) or when notified by the IRS of underreported income. Payers who are required to backup withhold must deposit these amounts with the IRS. The deposit rules for backup withholding generally follow the same monthly or semi-weekly schedules as payroll taxes, depending on the accumulated tax liability.

The annual reporting form for backup withholding and other non-payroll federal income tax withholding is Form 945, “Annual Return of Withheld Federal Income Tax.” This form reports federal income tax withheld from non-payroll payments. The annual due date for filing Form 945 is January 31 of the following year. If all deposits for the year were made on time, the filing deadline is extended to February 10.

Payments made to non-resident aliens and foreign entities from U.S. sources may also be subject to federal income tax withholding under Internal Revenue Code Section 1441. The general withholding rate is 30%, though a reduced rate or exemption may apply if a tax treaty exists. The frequency of deposits for these withheld amounts depends on the accumulated tax liability. For example, if the undeposited tax is $200 or more but less than $2,000 at month-end, the deposit is due by the 15th of the next month.

The annual reporting form for withholding on U.S. source income paid to foreign persons is Form 1042, “Annual Withholding Tax Return for U.S. Source Income of Foreign Persons.” This form must be filed by March 15 of the year following the calendar year in which the income was paid. If March 15 falls on a weekend or legal holiday, the due date shifts to the next business day.