Payroll Tax Deposit Schedule: Monthly vs Semiweekly
The lookback period that sets your schedule, the deposit deadlines under each, the $100,000 next-day rule, and EFTPS
Reviewed by the Fairlight Accounting cross-border tax team — U.S. & Canadian Tax Desks
Employers deposit withheld income tax and Social Security and Medicare taxes on one of two schedules set by a lookback period. Employers whose Form 941 liability in the lookback period was US$50,000 or less deposit monthly, by the 15th of the next month; those above it deposit semiweekly — by Wednesday for Wednesday-to-Friday paydays, by Friday for Saturday-to-Tuesday paydays.
On this page
How is my deposit schedule determined?
By the lookback period: the four quarters beginning July 1 two years ago and ending June 30 of last year (for calendar 2027, that is July 1, 2025 through June 30, 2026). Add up the total taxes reported on the four Forms 941 for those quarters (line 12, after adjustments). US$50,000 or less: monthly schedule depositor for the whole coming year. More than US$50,000: semiweekly schedule depositor. The schedule is fixed for the year regardless of how payroll changes during it — with one exception, the US$100,000 next-day rule below. A new employer with no lookback history is a monthly depositor in its first year (its lookback liability is zero). Form 944 filers use a different lookback (the second preceding calendar year).
What are the deadlines?
| Schedule | Applies when | Deadline |
|---|---|---|
| Monthly | Lookback liability ≤ US$50,000 | Deposit each month's total liability by the 15th of the next month |
| Semiweekly | Lookback liability > US$50,000 | Paydays Wednesday, Thursday, or Friday → deposit by the following Wednesday. Paydays Saturday, Sunday, Monday, or Tuesday → deposit by the following Friday |
| Next-day (overrides both) | Liability of US$100,000 or more accumulated on any day within a deposit period | Deposit by the next business day; a monthly depositor becomes semiweekly for the rest of the year and all of the next |
| Quarterly exception | Liability for the quarter, or for the prior quarter, under US$2,500 — and no US$100,000 next-day deposit in the current quarter | May pay with Form 941 instead of depositing |
Semiweekly depositors always have at least three business days after payday. If any of the three days after the deposit period is a legal holiday, the deadline extends one day per holiday. The "liability" being deposited is the sum of federal income tax withheld plus both shares of Social Security and Medicare for the paydays in the period.
What is the US$100,000 next-day rule?
If, on any day, an employer's accumulated undeposited liability reaches US$100,000, the entire amount must be deposited by the close of the next business day — whether the employer is monthly or semiweekly. A monthly depositor that hits the rule becomes a semiweekly depositor immediately for the remainder of the year and for the following year. The rule catches employers running large bonus payrolls: a December bonus run that pushes a single day's liability over US$100,000 triggers a next-day deposit and a schedule change.
How are deposits made?
Through the Electronic Federal Tax Payment System (EFTPS), free, online or by phone. Enrollment takes about a week (a PIN arrives by mail), so a new employer enrolls before the first payroll. EFTPS accepts same-day payments of US$1 million or less submitted before 3 p.m. Eastern on a business day; larger payments must be submitted by 8 p.m. Eastern the day before the due date. Payroll providers deposit on the employer's behalf — but the employer remains liable if the provider fails to; the employer should confirm deposits in its own EFTPS account periodically.
What is the failure-to-deposit penalty?
A percentage of the underpaid deposit, based on how late it is: 2 percent (1–5 days late), 5 percent (6–15 days), 10 percent (more than 15 days, or paid with the return, or paid other than through EFTPS when required), 15 percent (not paid within ten days of the first IRS notice). Penalties are assessed per deposit, so a semiweekly depositor who is consistently a few days late accumulates them fast. And the withheld portion of every deposit is trust fund money — the trust fund recovery penalty guide explains the personal exposure behind chronic deposit failures.
Worked example
A plumbing company reported Q3 2025 through Q2 2026 Form 941 liabilities of US$14,200, US$15,100, US$13,900, and US$15,600 — US$58,800 total. For 2027 it is a semiweekly depositor. It pays every other Friday: each payday's liability (about US$2,300) must be deposited by the following Wednesday. In March it hires two journeymen and payroll rises 30 percent — the schedule doesn't change; it deposits the larger amounts on the same Wednesday deadlines. In December it pays a one-time bonus payroll, after a large contract closes, big enough to push that Friday's liability to US$104,000: the next-day rule applies — the deposit is due Monday — and the company would already be semiweekly, so nothing else changes. Its competitor, a monthly depositor, ran the same bonus payroll: next-day deposit, and semiweekly status for the rest of the year and all of the next.
Frequently asked questions
How is my deposit schedule determined?
By total Form 941 taxes in the lookback period (July 1 two years ago through June 30 last year): US$50,000 or less means monthly deposits, more means semiweekly. New employers start as monthly depositors.
What is the lookback period?
The twelve months ending June 30 of the prior year — the four quarters whose Forms 941 set next year's schedule. For Form 944 filers, it is the second preceding calendar year.
What is the $100,000 next-day deposit rule?
When accumulated undeposited liability reaches US$100,000 on any day, it must be deposited by the next business day, and a monthly depositor becomes semiweekly for the rest of that year and the next.
What is the penalty for a late deposit?
2 percent for 1–5 days late, 5 percent for 6–15 days, 10 percent beyond 15 days or paid with the return, and 15 percent if still unpaid ten days after the IRS's first notice — per deposit.
Official sources
Publication 15 states: “If you reported $50,000 or less of taxes for the lookback period, you’re a monthly schedule depositor; if you reported more than $50,000, you’re a semiweekly schedule depositor.” — Internal Revenue Service, Publication 15 (Circular E), Employer's Tax Guide, https://www.irs.gov/publications/p15
The IRS states: “You must deposit and report your employment taxes on time.” — Internal Revenue Service, Employment taxes, https://www.irs.gov/businesses/small-businesses-self-employed/employment-taxes
Next step
Fairlight Accounting is a cross-border accounting and tax practice with a U.S. Tax Desk and a Canadian Tax Desk. Our U.S. Tax Desk handles deposit schedule determination each year, EFTPS setup and monitoring, next-day rule planning for bonus payrolls, and failure-to-deposit penalty abatement. See pricing or book a call.
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