When Is Payroll Tax Due? Federal & State Deadlines

Payroll taxes represent a significant obligation for employers, encompassing amounts withheld from employee wages and contributions employers pay directly. These funds support crucial government programs such as Social Security, Medicare, and unemployment benefits. Understanding the specific deadlines for depositing and reporting these taxes is important for compliance and avoiding penalties.

Federal Payroll Tax Deposit Schedules

Employers must deposit federal income tax withheld, Social Security, and Medicare taxes regularly. The Internal Revenue Service (IRS) assigns employers one of two main deposit schedules: monthly or semi-weekly, based on their reported tax liability during a defined lookback period. New employers automatically begin as monthly depositors for their first calendar year.

Monthly depositors are generally businesses with a total tax liability of $50,000 or less during the four quarters of the lookback period. For these employers, payroll tax deposits are due on the 15th day of the month following the payroll. For example, taxes for wages paid in January would be due by February 15th.

Semi-weekly depositors are typically businesses with a total tax liability exceeding $50,000 during the lookback period. Their deposit schedule is more frequent and depends on the day wages are paid. If payroll occurs on a Wednesday, Thursday, or Friday, the deposit is due by the following Wednesday. Conversely, for payrolls on a Saturday, Sunday, Monday, or Tuesday, the deposit is due by the following Friday.

A special rule applies if an employer accumulates $100,000 or more in tax liability on any single day. The employer must deposit the accumulated taxes by the close of the next banking day, regardless of their usual monthly or semi-weekly schedule. This $100,000 next-day deposit rule overrides the standard schedule for large tax liabilities. Employers should consult IRS Publication 15, also known as Circular E, for guidance on these deposit rules and other employer tax responsibilities. These are deposit deadlines for tax payments, separate from the filing deadlines for tax forms.

Quarterly Federal Payroll Tax Filing

Beyond regular deposits, employers must also file federal payroll tax returns quarterly. The primary form for this is Form 941, “Employer’s Quarterly Federal Tax Return,” which reports total wages paid, tips received, federal income tax withheld, and both the employee and employer portions of Social Security and Medicare taxes for the quarter.

The due dates for filing Form 941 are specific to each calendar quarter:
First quarter (January 1 to March 31): April 30
Second quarter (April 1 to June 30): July 31
Third quarter (July 1 to September 30): October 31
Fourth quarter (October 1 to December 31): January 31 of the following year

An extended due date applies if an employer has made timely deposits of all taxes due for the quarter. The filing deadline for Form 941 is extended by 10 calendar days. For example, if all first-quarter deposits were made on time, the Form 941 due date would shift from April 30 to May 10. Adhering to these deadlines is important to avoid penalties for late filing or payment.

Annual Federal Payroll Tax Reporting

Employers have additional federal payroll tax obligations that are reported annually. These include federal unemployment taxes and the reporting of employee wage and tax statements. These annual forms reconcile the year’s tax liabilities and provide necessary information to employees and federal agencies.

The Federal Unemployment Tax Act (FUTA) funds state unemployment compensation programs and is an annual obligation. Employers generally file Form 940, “Employer’s Annual Federal Unemployment (FUTA) Tax Return,” to report these wages and calculate the tax. The general due date for filing Form 940 is January 31 of the year following the tax year. However, if all FUTA taxes were deposited on time throughout the year, employers receive an automatic extension to file Form 940 until February 10. FUTA tax deposits are typically required quarterly if the accumulated liability exceeds $500.

Employers are also responsible for furnishing Form W-2, “Wage and Tax Statement,” to each employee by January 31 of the year following the tax year. This form details the employee’s wages, tips, and other compensation, along with withheld federal, state, and local taxes. Concurrently, employers must file Copy A of all Forms W-2, along with Form W-3, “Transmittal of Wage and Tax Statements,” with the Social Security Administration (SSA) by January 31. These forms are important for employees to file their individual income tax returns and for the SSA to track earnings for Social Security and Medicare benefits.

State and Local Payroll Tax Due Dates

Federal payroll taxes represent only one component of an employer’s overall tax responsibilities. Many states, and sometimes local jurisdictions, impose their own payroll taxes. These typically include state unemployment insurance (SUI) contributions and may also involve state income tax withholding. The specific due dates and filing requirements for these state and local taxes vary considerably across different jurisdictions.

Each state maintains its own department of labor or revenue, which sets the rules for unemployment insurance and state income tax withholding. These agencies determine the frequency of deposits and filings, which can range from monthly to quarterly or even annually depending on the employer’s size and liability. Employers should consult the official websites or publications of their specific state’s tax authority for information. Similarly, if a local jurisdiction imposes its own payroll taxes, the relevant city or county tax authority should be contacted for their deadlines and requirements.