Your payroll deposit schedule is monthly if you reported $50,000 or less in taxes during the lookback period, and semiweekly if you reported more than $50,000. Monthly depositors pay by the 15th of the next month.
Last updated October 25, 2026. Reviewed by Aryan Patel, founder of Senvora Group, a bookkeeping firm that supports CPA firms and business owners. Every rule below comes from irs.gov, mainly the IRS employment tax due dates page, the IRS page on depositing and reporting employment taxes, IRS Tax Topic 757, the IRS failure to deposit penalty page and Publication 15 (Circular E). Here is how to find your schedule, when to deposit, and what late deposits cost.
Year end is close. If your payroll records and books need a check before W-2s are due, use our free year end checklist and file review.
Key takeaways
- There are two deposit schedules for employment taxes: monthly and semiweekly. Which one you use depends on taxes you reported in the lookback period.
- $50,000 or less in the lookback period means monthly. More than $50,000 means semiweekly.
- Monthly depositors deposit by the 15th day of the following month. If the 15th lands on a weekend or legal holiday, the deposit is due the next business day.
- Semiweekly depositors deposit by Wednesday for paydays Wednesday to Friday, and by Friday for paydays Saturday to Tuesday.
- Hit $100,000 in taxes on any day and the deposit is due the next business day.
- All federal tax deposits must be made by electronic funds transfer.
How to find your payroll deposit schedule
Start with the lookback period. It decides everything. The IRS says that for Form 941 filers, the lookback period is the 12 months, covering four quarters, starting July 1 of the second preceding year and ending June 30 of the prior year.
For 2026, that works out to July 1, 2024 through June 30, 2025. Add up the employment taxes you reported on Form 941 for those four quarters. Then compare the total to the IRS line.
- $50,000 or less: you are a monthly schedule depositor.
- More than $50,000: you are a semiweekly schedule depositor.
Two notes. First, the IRS Tax Topic 757 describes the lookback rule for Form 941 filers. If you file Form 944, your rules differ, so check the IRS page on depositing and reporting employment taxes and Publication 15 (Circular E). Second, a semiweekly schedule has nothing to do with how often you run payroll. It is a deposit rule, not a pay rule.
You must figure out your schedule before each calendar year. Put a reminder on your calendar for December so it is settled before your first January payroll.
Monthly vs semiweekly: side by side
| Rule | Monthly depositor | Semiweekly depositor |
|---|---|---|
| Lookback test | $50,000 or less reported in the lookback period | More than $50,000 reported in the lookback period |
| Deposit due | By the 15th day of the following month | Wednesday, Thursday or Friday paydays: by the following Wednesday. Saturday to Tuesday paydays: by the following Friday |
| Weekend or holiday | If the 15th falls on a Saturday, Sunday or legal holiday, the deposit is due the next business day | If a due date falls on a non business day, the deposit is timely if made by the close of the next business day |
| $100,000 rule | Deposit by the next business day once you accumulate $100,000 or more on any day | Same rule applies |
| How to pay | Electronic funds transfer | Electronic funds transfer |
These due dates appear on the IRS employment tax due dates page and in IRS Tax Topic 757. Semiweekly depositors also get at least three business days after the period closes to deposit.
The $100,000 next day deposit rule
This one catches people off guard. If you accumulate taxes of $100,000 or more on any day during a deposit period, you must deposit by the next business day. The IRS Tax Topic 757 also says you then become a semiweekly depositor for the rest of the year and the following year.
Big bonus runs and large one time payouts are the usual trigger. If you plan a large payment, check your tax total before payday, not after.
The new employer rule
Starting a business or hiring your first employee? The IRS Tax Topic 757 says that if you are a new employer, your taxes in the lookback period are considered to be zero for any quarter before you started. A new employer is a monthly depositor in its first year of business, unless the $100,000 next day deposit rule applies.
The $2,500 rule for small payroll
Very small payrolls get a break. According to the IRS Tax Topic 757, if you file Form 941 and your employment tax liability for the preceding quarter or the current quarter is less than $2,500, you may pay with your timely filed return instead of depositing. The exception is if the $100,000 next day rule applies. Not sure you qualify? Ask your CPA or bookkeeper before skipping a deposit.
A worked example
This is a made up example for illustration only. The businesses and numbers are not real. The dollar figures are simple so you can check the math.
Step 1: add up the lookback period
Example business A reported these taxes on Form 941 for the four lookback quarters (July 1, 2024 through June 30, 2025): $11,200, $12,400, $12,900 and $13,100. The total is $49,600. That is $50,000 or less, so business A is a monthly depositor in 2026.
Example business B reported $14,000, $15,500, $16,200 and $15,300 in the same four quarters. The total is $61,000. That is more than $50,000, so business B is a semiweekly depositor in 2026.
Step 2: find the deposit dates
- Business A (monthly): its October 2026 payroll taxes are due by November 15, 2026. That date is a Sunday, so the deposit is due Monday, November 16, 2026.
- Business B (semiweekly), payday Friday, November 6: the deposit is due the following Wednesday, November 11, 2026. That day is Veterans Day, a legal holiday, so the deposit is timely if made by the close of the next business day, Thursday, November 12.
- Business B, payday Monday, November 9: the deposit is due the following Friday, November 13, 2026.
Notice that business B has two different deposit dates in the same week, one for each payday. That is the semiweekly rhythm. Scheduling in your payroll software saves headaches here.
Step 3: see what a late deposit would cost
Say business B owes a $2,300 deposit and misses the due date. Using the IRS tiers in the next section, that deposit would cost $46 in penalty if it were 1 to 5 calendar days late (2%), $115 if it were 6 to 15 days late (5%), and $230 if it were more than 15 days late (10%). Interest is extra.
Penalties for late deposits
The IRS failure to deposit penalty page bases the penalty on how many calendar days late the deposit is, counted from its due date. The tiers are:
| How late | Penalty |
|---|---|
| 1 to 5 calendar days | 2% of the unpaid deposit |
| 6 to 15 calendar days | 5% of the unpaid deposit |
| More than 15 calendar days | 10% of the unpaid deposit |
| More than 10 calendar days after your first IRS notice or letter, or after a notice for immediate payment | 15% of the unpaid deposit |
The IRS page also says the penalty amounts do not add up, and that the IRS charges interest on penalties. The IRS can also assess penalties for depositing less than the required amount or for mailing payments directly to the IRS instead of depositing them. The IRS may waive penalties in certain cases.
Separately, Publication 15 (Circular E) warns that the trust fund recovery penalty may apply if withheld taxes are not deposited or paid. Withheld taxes are money you hold for your employees and the government. Treat them that way.
How to make the deposit
Federal tax deposits must be made by electronic funds transfer. The IRS page on depositing and reporting employment taxes lists free options: your business tax account, Direct Pay for businesses and EFTPS. You can also use an ACH credit from your bank, a payroll service or tax professional, or a same day tax wire, which may carry fees. Publication 15 (Circular E) says not to use electronic funds withdrawal or a credit or debit card for federal tax deposits.
Timing matters. IRS Tax Topic 757 says that to be on time, you must schedule the deposit by 8 p.m. Eastern time the day before the deposit is due. Also, Publication 15 (Circular E) says a statewide legal holiday does not delay the due date of federal tax deposits.
How your bookkeeping connects to deposits
Deposits are only as accurate as the payroll numbers behind them. In the QuickBooks files we review, plenty of them had unreconciled history, and payroll liability accounts are where that hurts. Read the full 5 QuickBooks setup errors we see most to see the setup errors we found.
A simple habit helps. Every month, match each deposit to the payroll liability it paid. Anything left over needs an explanation. Our quarter end close checklist shows how to fit that into your close, and our Form 941 Q3 2026 guide covers the quarterly return that reports what you deposited. Heading into December? Run through the year end payroll checklist too.
If this sounds like a lot to track, it is. That is the point of outsourced bookkeeping. Someone else watches the dates so you can run the business.
Frequently asked questions
How do I know if I am a monthly or semiweekly depositor?
Add up the taxes you reported for the lookback period. The IRS says that for Form 941 filers it is the 12 months starting July 1 of the second preceding year and ending June 30 of the prior year. If the total is $50,000 or less, you are monthly. If it is more than $50,000, you are semiweekly.
When are monthly payroll deposits due?
Monthly depositors deposit by the 15th day of the following month. If the 15th falls on a Saturday, Sunday or legal holiday, the deposit is due the next business day.
When are semiweekly payroll deposits due?
For paydays on Wednesday, Thursday or Friday, deposit by the following Wednesday. For paydays on Saturday, Sunday, Monday or Tuesday, deposit by the following Friday.
What is the $100,000 next day deposit rule?
If you accumulate taxes of $100,000 or more on any day during a deposit period, you must deposit by the next business day. The IRS says you then become a semiweekly depositor for the rest of the year and the following year.
What is the penalty for a late payroll deposit?
The IRS failure to deposit penalty is 2% for 1 to 5 calendar days late, 5% for 6 to 15 days late, and 10% for more than 15 days late. A 15% rate applies when the deposit is more than 10 days after your first IRS notice or after a notice for immediate payment. The IRS also charges interest on penalties.
Sources
- IRS employment tax due dates page (irs.gov)
- IRS page on depositing and reporting employment taxes (irs.gov)
- IRS Tax Topic 757 (irs.gov)
- IRS failure to deposit penalty page (irs.gov)
- Publication 15 (Circular E) (irs.gov)
Want someone to watch your payroll deposit dates?
Senvora Group handles monthly outsourced bookkeeping for business owners and CPA firms, including payroll liability reconciliations that tie to your deposits and filings. You can also see our outsourced bookkeeping pricing breakdown, or DM Aryan. Do you know today which deposit schedule you are on?
