The tax liability on a Form 941 return includes your employees'
withheld federal income tax, social security tax, and Medicare tax,
and your share of social security and Medicare tax.
If you accumulate a liability for these taxes of $500 or more per
quarter, you must deposit this amount by making payment to an
authorized financial institution or the Federal Reserve bank for your
area. A Form 8109, Federal Tax Deposit Coupon, or FTD, Coupon must
accompany your payment. It is very important that you clearly mark
the correct type of tax and tax period on each FTD coupon, as this
information is used by the IRS to credit your account. Your check or
money order should be made payable to the financial institution or
Federal Reserve bank where you make your deposit, not the IRS.
New employers who apply for an employer identification number are
sent an FTD coupon book. The IRS will keep track of the number of
coupons you use and will automatically send you additional FTD
coupons when you need them. If necessary, the IRS will assist you in
completing blank coupons, which can be used to make a deposit if you
do not have pre-printed Forms 8109. For more information, refer to
Form 8109-B, or call IRS at 1-800-829- 1040.
To avoid a penalty, it is important that deposits be made timely. If
the deposit due date falls on a Saturday, Sunday, or legal holiday,
the deposit will be due by the next banking day.
You must deposit the Form 941 taxes based on either a monthly or
semi-weekly deposit schedule.
New employers are generally monthly depositors for at least the first
year. Otherwise your deposit status for 1997 is based on the amount
of taxes you reported on Form 941 for the period July 1, 1995,
through June 30, 1996. This is called the look back period.
If you reported taxes of $50,000 or less on Forms 941 for the look
back period, you are a monthly schedule depositor and generally must
deposit each month's Form 941 taxes on or before the 15th day of the
following month. For example, taxes for January must be deposited by
If you reported taxes of more than $50,000 for the look back period,
you are a semi-weekly schedule depositor and generally must deposit
Form 941 taxes on or before Wednesday or Friday, based on the
The employment taxes on payments made to your employees on
Wednesday, Thursday, and/or Friday must be deposited by the
The taxes on payments made to your employees on Saturday,
Sunday, Monday, and/or
Tuesday must be deposited by the following Friday.
Whether you are a monthly depositor or a semi-weekly schedule
depositor, if you accumulate taxes of $100,000 or more on any
day during a deposit period, you must deposit them on the next
Deposit requirements are discussed in Publication 15, Employer's Tax
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