Are there any exceptions to the deposit schedule?
There are two exceptions to the deposit schedule.
- Next Day Rule: If an employer accumulates $100,000 or more of taxes on any single day during a deposit period, you must deposit the tax by the next banking day, whether the company is a monthly or semiweekly depositor. If an employer accumulates $95,000 on a Tuesday and another $10,000 on Wednesday, the $100,000 deposit rule does not apply.
- Quarterly Deposit Rule: If an employer accumulates less than $2,500 of taxes during the quarter, the employer can remit withheld income taxes and employee and employer FICA at the end of the quarter when filing Form 941.