When Is Payroll Due? Employee and Tax Deadlines

Understanding when payroll is due is important for employers. Payroll involves compensating employees and remitting various taxes to governmental bodies. Navigating these obligations presents a challenge, as deadlines for employee wages differ from those for tax payments, and federal requirements vary from state and local mandates. Adhering to these timelines is important for maintaining compliance and avoiding disruptions.

Employee Compensation Due Dates

Employers must adhere to specific timelines when paying employees their earned wages or salaries. Most employers establish a regular pay frequency, such as weekly, bi-weekly, semi-monthly, or monthly.

State laws often dictate the minimum required pay frequency for employers, with some states requiring payments at least twice a month, while others may allow monthly payments. These laws also frequently specify the maximum number of days an employer has to pay wages after the end of a pay period, commonly ranging from 7 to 10 days. Employers must review the requirements in the jurisdictions where their employees work to ensure compliance.

Special considerations apply to final paychecks for terminated employees, which often have accelerated due dates. When employment ends, many states require the final wages to be paid much sooner than a regular payday. Depending on the state and the circumstances of termination, this payment might be due immediately upon termination, within a few business days, or by the next scheduled payday. These expedited deadlines are designed to ensure employees receive their final earnings promptly.

Federal Payroll Tax Due Dates

Federal payroll taxes include amounts withheld from employee wages for federal income tax, Social Security, and Medicare taxes (FICA), along with taxes paid by the employer for FICA and the Federal Unemployment Tax Act (FUTA). Employers are responsible for depositing these withheld and employer-contributed taxes with the U.S. Treasury. The Internal Revenue Service (IRS) outlines specific deposit schedules based on the employer’s total tax liability.

Most employers use either a monthly or semi-weekly deposit schedule for federal income tax, Social Security, and Medicare taxes, reported on Form 941, Employer’s Quarterly Federal Tax Return. A monthly deposit schedule applies if the total tax liability during the lookback period was $50,000 or less. Under this schedule, taxes for a given month are due by the 15th day of the following month.

A semi-weekly deposit schedule is required if the total tax liability during the lookback period exceeded $50,000. Regardless of the schedule, if an employer accumulates $100,000 or more in federal tax liability on any day, those taxes must be deposited by the next business day.

Form 941 itself, which summarizes the employer’s quarterly tax liability and deposits, is due by the last day of the month following the end of the quarter. For instance, the Form 941 for the first quarter (January 1 to March 31) is due by April 30. An employer may have an additional 10 calendar days to file if they made timely deposits for the full amount of taxes due for the quarter.

Federal Unemployment Tax Act (FUTA) taxes are generally due annually, with Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, due by January 31 of the following year. While the form is filed annually, employers must deposit FUTA taxes quarterly if their accumulated FUTA tax liability exceeds $500 by the end of any calendar quarter. These quarterly deposits are due by the last day of the month following the end of the quarter.

State and Local Payroll Tax Due Dates

In addition to federal obligations, employers must also manage due dates for state and, in some cases, local payroll taxes. These deadlines exhibit considerable variation across jurisdictions. Common state-level payroll taxes include state income tax withholding and State Unemployment Insurance (SUI) contributions.

State income tax withholding due dates often mirror federal patterns but can also have unique thresholds and frequencies. Some states may require monthly or semi-weekly deposits for higher liabilities, while others allow quarterly or annual filings for smaller employers. Employers typically submit state withholding taxes along with corresponding reconciliation forms, which vary in due date.

State Unemployment Insurance (SUI) taxes, which fund unemployment benefits, are almost universally required to be paid quarterly. These payments are generally due by the last day of the month following the end of the calendar quarter. Each state’s unemployment agency provides specific rates and reporting forms that employers must use for these quarterly submissions.

Local payroll taxes introduce another layer of complexity, as their existence and due dates depend on the specific city, county, or other local jurisdiction where an employer operates. The payment and filing frequencies for local taxes vary widely, ranging from monthly to quarterly or even annually. Employers need to identify any applicable local taxes based on their business location and understand the specific due dates set by the local taxing authority.

Understanding and Meeting Deadlines

Accurately understanding and consistently meeting all payroll due dates is fundamental for an employer’s financial health and legal standing. Failing to make timely payments or file required forms can result in significant penalties and interest charges imposed by federal, state, and local taxing authorities. These penalties can escalate quickly, often increasing based on how late the payment or filing is, potentially impacting an organization’s cash flow.

To ensure compliance, accurate record-keeping is paramount. Employers should maintain precise records of employee wages, hours worked, taxes withheld, and tax deposits made. This documentation not only supports accurate and timely payroll processing but also serves as proof of compliance during audits. Organized records simplify the preparation of required tax forms and help identify any discrepancies before deadlines.

Utilizing a comprehensive payroll calendar is a practical strategy for managing the various due dates. A well-designed calendar can visually track federal, state, and local tax deadlines, as well as employee paydays, providing a clear overview of upcoming obligations. This proactive approach helps prevent missed deadlines by allowing employers to plan for necessary funds and administrative tasks in advance.

Many employers find that leveraging payroll software or engaging professional payroll services significantly aids in meeting these diverse deadlines. These solutions often automate tax calculations, manage deposit schedules, and prepare required tax forms, reducing the administrative burden and the risk of errors. Such tools can provide automated reminders and ensure that payments are submitted electronically by the prescribed due dates, thereby enhancing overall payroll compliance and operational efficiency.