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Department of the Treasury
Notice 931 Internal Revenue Service
(Rev. September 2022)

Deposit Requirements for Tax Return; Form 945, Annual Return of Withheld
Federal Income Tax; and Form CT-1, Employer's Annual
Employment Taxes Railroad Retirement Tax Return. However, the period
used as your lookback period is different; see Lookback
There are two deposit schedules—monthly or period for annual returns, later. For more information
semiweekly—for determining when you deposit social about deposit rules for annual returns, see section 11 of
security and Medicare taxes and withheld federal Pub. 15 (for Forms 944 and 945), section 7 of Pub. 51
income tax. These schedules tell you when a deposit is (for Form 943), and the Instructions for Form CT-1.
due after a tax liability arises (for example, when you
have a payday). Before the beginning of each calendar Federal tax deposits must be made by electronic
year, you must determine which of the two deposit funds transfer (EFT). You must use EFT to make all
schedules you must use. The deposit schedule you federal tax deposits. Generally, an EFT is made using
must use is based on the total tax liability you reported the Electronic Federal Tax Payment System (EFTPS). If
during a lookback period. Your deposit schedule isn't you don't want to use EFTPS, you can arrange for your
determined by how often you pay your employees or tax professional, financial institution, payroll service, or
make deposits. See Application of Monthly and other trusted third party to make electronic deposits on
Semiweekly Schedules, later. your behalf. Also, you may arrange for your financial
These rules don't apply to federal unemployment institution to initiate a same-day wire payment on your
(FUTA) tax. See the Instructions for Form 940 for behalf. EFTPS is a free service provided by the
information on depositing FUTA tax. Department of the Treasury. Services provided by your
tax professional, financial institution, payroll service, or
Deposit rules for Form 941. Your deposit schedule other third party may have a fee.
(monthly or semiweekly) for Form 941, Employer's For more information on making federal tax deposits,
QUARTERLY Federal Tax Return, is based on the total see section 11 of Pub. 15. To get more information
tax liability you reported on Forms 941 during a 4-quarter about EFTPS or to enroll in EFTPS, visit EFTPS.gov or
lookback period discussed later under Lookback period call 800-555-4477. Dial 711 if you're deaf, hard of
for Form 941. hearing, or have a speech disability and then provide the
Instead of making deposits during the current quarter, Telecommunications Relay Services (TRS)
you can pay your total Form 941 tax liability when you communications assistant with the number above or
timely file Form 941 if: 800-733-4829. Additional information about EFTPS is
1. Your total Form 941 tax liability for either the also available in Pub. 966.
current quarter or the preceding quarter is less than Depositing on time. For EFTPS deposits to be on
$2,500, and time, you must submit the deposit by 8 p.m. Eastern time
2. You don't incur a $100,000 next-day deposit the day before the date the deposit is due. If you fail to
obligation during the current quarter. submit an EFTPS deposit on time, you may use the
same-day wire payment option discussed above.
If you’re not sure your total liability for the current
quarter will be less than $2,500, and your liability for the
Lookback period for Form 941. Your deposit
preceding quarter wasn't less than $2,500, make
schedule for a calendar year is determined from the total
deposits using the semiweekly or monthly rules so you
taxes reported on your Forms 941 in a 4-quarter
won't be subject to failure-to-deposit penalties. For more
lookback period. The lookback period begins July 1 and
information about deposit rules for Form 941, see
ends June 30, as shown in the following chart. If you
section 11 of Pub. 15.
reported $50,000 or less of Form 941 taxes for the
lookback period, you’re a monthly schedule depositor; if
Deposit rules for annual Forms 943, 944, 945, and
you reported more than $50,000, you’re a semiweekly
CT-1. Generally, the deposit rules for quarterly filers of
schedule depositor. The lookback period for a 2023
Form 941 also apply to annual filers of Form 943,
Form 941 filer who filed Form 944 in either 2021 or 2022
Employer's Annual Federal Tax Return for Agricultural
is calendar year 2021.
Employees; Form 944, Employer's ANNUAL Federal

IRS.gov Catalog No. 14736T

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Form 941 Lookback Period for Calendar                                  taxes accumulated on the days during the return period 
Year 2023                                                              just ending are subject to one deposit obligation, and 
                                                                       taxes accumulated on the days covered by the new 
         Lookback Period                                               return period are subject to a separate deposit 
        2021                2022              2023                     obligation. For example, if a return period ends on 
                                                                       Thursday, taxes accumulated on Wednesday and 
July 1   Oct. 1    Jan. 1        Apr. 1    Calendar 
through  through   through       through ←    Year                     Thursday are subject to one deposit obligation, and 
Sept. 30 Dec. 31   Mar. 31       June 30   Jan.– Dec.                  taxes accumulated on Friday are subject to a separate 
                                                                       obligation. Separate deposits are required because two 
                                                                       different return periods are affected.
TIP
         Your total tax liability is the amount you reported on        Example of Monthly and Semiweekly 
line 12 of Form 941 or Form 941-SS. Your total liability is not 
reduced by the refundable portion of the credit for qualified sick and Schedules
family leave wages, the refundable portion of the employee 
retention credit, or the refundable portion of the COBRA premium       Hazel Jones reported Form 941 tax liabilities as follows:
assistance credit. For more information about these credits, see the 
instructions for your employment tax return that were applicable           2022 Lookback Period              2023 Lookback Period
during the lookback period.                                            3rd Quarter 2020—$12,000 3rd Quarter 2021—$12,000
                                                                       4th Quarter 2020—$12,000 4th Quarter 2021—$12,000
Lookback period for annual returns.      For annual                    1st Quarter 2021—$12,000 1st Quarter 2022—$12,000
returns (Forms 943, 944, 945, and CT-1), the lookback                  2nd Quarter 2021—$12,000 2nd Quarter 2022—$15,000
period is the calendar year preceding the previous year.                             $48,000                              $51,000
For example, the lookback period for 2023 is 2021.

Monthly Deposit Schedule                                               Hazel is a monthly schedule depositor for 2022 
                                                                       because Hazel’s tax liability for the 4 quarters in the 
You’re a monthly schedule depositor for a calendar year                lookback period (3rd quarter 2020 through 2nd quarter 
if the total tax reported for your lookback period was                 2021) wasn't more than $50,000. However, for 2023, 
$50,000 or less.                                                       Hazel is a semiweekly schedule depositor because 
                                                                       Hazel’s liability exceeded $50,000 for the 4 quarters in 
Under the monthly deposit schedule, deposit 
                                                                       the lookback period (3rd quarter 2021 through 2nd 
accumulated taxes on payments made during a 
                                                                       quarter 2022).
calendar month by the 15th day of the following month.

New employers.   Your tax liability for any quarter in the             Deposits Due on Business Days 
lookback period before the date you started or acquired                Only
your business is considered to be zero. Therefore, 
you’re a monthly schedule depositor for the first                      If a deposit is due on a day that isn't a business day, the 
calendar year of your business. However, see the                       deposit is considered to have been made timely if it is 
$100,000 Next-Day Deposit Rule, later.                                 made by the close of the next business day. A business 
                                                                       day is any day other than a Saturday, Sunday, or legal 
Semiweekly Deposit Schedule                                            holiday. For example, if a deposit is due on a Friday and 
                                                                       Friday is a legal holiday, the deposit will be considered 
You’re a semiweekly schedule depositor for a calendar                  timely if it is made by the following Monday (if that 
year if the total taxes during your lookback period were               Monday is a business day). The term "legal holiday" 
more than $50,000.                                                     means any legal holiday in the District of Columbia. For 
                                                                       a list of legal holidays, see section 11 of Pub. 15 or 
Deposit Period (Payment Days)      Deposit By                          section 7 of Pub. 51.
Wednesday, Thursday, and/or Friday Following Wednesday
                                                                       Semiweekly schedule depositors have at least 3 
Saturday, Sunday, Monday, and/or   Following Friday
Tuesday                                                                business days following the close of the semiweekly 
                                                                       period to make a deposit. That is, if any of the 3 
                                                                       weekdays after the end of a semiweekly period is a legal 
                                                                       holiday, you’ll have an additional business day to 
                                                                       deposit for each day that is a legal holiday. For example, 
Semiweekly deposit period spanning two return                          if a semiweekly schedule depositor accumulated taxes 
periods. The period of time covered by a return is the                 for payments made on Friday and the following Monday 
return period. The return period for a quarterly Form 941              is a legal holiday, the deposit normally due on 
is a calendar quarter. The return period for annual Forms              Wednesday may be made on Thursday. This allows 3 
943, 944, 945, and CT-1 is a calendar year. If a return                business days to make the deposit.
period ends on a day other than Friday or Tuesday, 
IRS.gov                                                                                                      Catalog No. 14736T

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Application of Monthly and On Monday, Fir Co. accumulates taxes of $110,000 and
must deposit this amount on Tuesday, the next business
Semiweekly Schedules day. On Tuesday, Fir Co. accumulates additional taxes
The terms “monthly schedule depositor” and of $30,000. Because the $30,000 isn't added to the
“semiweekly schedule depositor” don't refer to how often previous $110,000 and is less than $100,000, Fir Co.
your business pays its employees or even to how often must deposit the $30,000 by Friday, following the
you must make deposits. The terms identify which set of semiweekly deposit schedule.
deposit rules you must follow when an employment tax If you’re a monthly schedule depositor and
liability arises. The deposit rules are based on the dates accumulate a $100,000 tax liability on any day, you
wages are paid, not on when employment tax liabilities become a semiweekly schedule depositor on the next
are accrued. day and remain so for at least the rest of the calendar
year and for the following calendar year.
Monthly schedule example. Spruce Co. is a monthly
schedule depositor with seasonal employees. It paid
wages each Friday during May, but didn't pay any
wages during June. Under the monthly schedule,
Spruce Co. must deposit the combined tax liabilities for CAUTION!
The $100,000 tax liability threshold requiring
the May paydays by June 15. Spruce Co. doesn't have a
a next-day deposit is determined before you consider
deposit requirement for June (due by July 15) because
any reduction of your liability for nonrefundable
no wages were paid and, therefore, it didn't have a tax
credits. For more information, see frequently asked
liability for June.
question 17 at IRS.gov/ETD.
Semiweekly schedule example. Green, Inc., has a
semiweekly deposit schedule and pays wages once
each month on the last Friday of the month. Although
Green, Inc., has a semiweekly deposit schedule, it will Example of $100,000 next-day deposit rule. Elm,
deposit just once a month because it pays wages only Inc., started its business on May 1, 2023. On
once a month. The deposit, however, will be made Wednesday, May 3, it paid wages for the first time and
under the semiweekly deposit schedule as follows: accumulated a tax liability of $40,000. On Friday, May 5,
Green, Inc.’s tax liability arises when it pays wages on Elm, Inc., paid wages and accumulated a liability of
April 28, 2023 (Friday); the liability must be deposited by $60,000, making its accumulated tax liability total
May 3, 2023 (Wednesday). Under the semiweekly $100,000. Elm, Inc., must deposit $100,000 by Monday,
deposit schedule, liabilities for wages paid on May 8, the next business day. Because this was the first
Wednesday through Friday must be deposited by the year of its business, the tax liability for its lookback
following Wednesday. period is considered to be zero, and it would be a
monthly schedule depositor based on the lookback
rules. However, because Elm, Inc., accumulated
$100,000 Next-Day Deposit Rule $100,000 on May 5, it became a semiweekly schedule
If you accumulate a tax liability of $100,000 or more on depositor on May 6. It will be a semiweekly schedule
any day during a deposit period, you must deposit the depositor for at least the remainder of 2023 and for
tax by the close of the next business day, whether you’re 2024.
a monthly or semiweekly schedule depositor. The
deposit period for monthly schedule depositors is a Adjustments and the Lookback Rule
calendar month. For semiweekly schedule depositors,
the deposit periods are Wednesday through Friday and Determine your tax liability for the lookback period
Saturday through Tuesday. (4-quarter lookback period for Form 941 and
calendar-year lookback period for Forms 943, 944, 945,
For the $100,000 next-day deposit rule, don't
and CT-1) based on the tax liability as originally
continue accumulating tax liabilities after the end of a
reported. If you later made adjustments to correct errors
deposit period. For example, if a semiweekly schedule
on those returns by filing a Form 941-X, Form 943-X,
depositor has accumulated a liability of $95,000 on a
Form 944-X, Form 945-X, or Form CT-1 X, these
Tuesday (of a Saturday-through-Tuesday deposit
adjustments don't affect the amount of the employment
period) and accumulated a $10,000 liability on
tax liability for the lookback rule.
Wednesday, the $100,000 next-day deposit rule doesn't
apply because the $10,000 is accumulated in the next
Example of adjustments and the lookback rule for
deposit period. Therefore, $95,000 must be deposited
Form 941. An employer originally reported a tax liability
by Friday and $10,000 by the following Wednesday.
of $45,000 for the 4 quarters in the lookback period
In addition, once you accumulate at least $100,000 in ending June 30, 2022. This makes the employer a
a deposit period, stop accumulating at the end of that monthly schedule depositor because the tax liability
day and begin to accumulate anew the next day. For originally reported didn't exceed $50,000. The employer
example, Fir Co. is a semiweekly schedule depositor. discovered during January 2023 that the tax during 1 of
IRS.gov Catalog No. 14736T

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the lookback period quarters was understated by             You may pay the shortfall with your return even if the 
$10,000 and corrected this error with an adjustment on      amount is $2,500 or more.
Form 941-X. This employer remains a monthly schedule 
depositor for 2023 because the lookback period tax          Semiweekly schedule depositor. Deposit by the 
liabilities are based on the amounts originally reported    earlier of:
and they didn't exceed $50,000. The $10,000                 1. The first Wednesday or Friday that falls on or after 
adjustment doesn't affect the amount of tax liability for   the 15th day of the month following the month in which 
the lookback rule. The $10,000 adjustment is also not       the shortfall occurred, or
treated as part of the 2023 taxes.
                                                            2. The due date of your return (for the return period 
                                                            of the tax liability). Forms 941, 943, 944, and 945 are 
Accuracy of Deposits Rule                                   due by the last day of the month following the period for 
                                                            which the returns were made. Form CT-1 is due by the 
You’re required to deposit 100% of your tax liability on or 
                                                            last day of the second month following the calendar 
before the deposit due date. However, penalties won't 
                                                            year.
be applied for depositing less than 100% if both of the 
following conditions are met.                               For example, if a semiweekly schedule depositor has a 
1. Any deposit shortfall doesn't exceed the greater of      deposit shortfall during May 2023, the shortfall makeup 
$100 or 2% of the amount of taxes otherwise required to     date is June 16, 2023 (Friday). However, if the shortfall 
be deposited.                                               occurred on the required October 4, 2023 (Wednesday), 
                                                            deposit due date for the September 29, 2023 (Friday), 
2. The deposit shortfall is paid or deposited by the 
                                                            pay date, the return due date for the September 29 pay 
shortfall makeup date as described below.
                                                            date (October 31, 2023) would come before the 
                                                            November 15, 2023 (Wednesday), shortfall makeup 
Makeup Date for Deposit Shortfall                           date. In this case, the shortfall must be deposited by 
                                                            October 31, 2023.
Monthly schedule depositor.   Deposit or pay the 
shortfall with your return by the due date of the return. 

IRS.gov                                                                                    Catalog No. 14736T

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