General Instructions

Purpose of Schedule B

These instructions tell you about Schedule B, Report of Tax Liability for Semiweekly Schedule Depositors. To determine if you are a semiweekly depositor, visit IRS.gov and type “semiweekly depositor” in the search box. Also see Pub. 15 (Circular E), Employer's Tax Guide, or Pub. 80 (Circular SS), Federal Tax Guide for Employers in the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

Federal law requires you, as an employer, to withhold certain taxes from your employees' paychecks. Each time you pay wages, you must withhold – or take out of your employees' paychecks – certain amounts for federal income, social security, and Medicare taxes (payroll taxes). Under the withholding system, taxes withheld from your employees are credited to your employees in payment of their tax liabilities.

Federal law also requires employers to pay any liability for the employer's portion of social security and Medicare taxes. This portion of social security and Medicare taxes is not withheld from employees.

On Schedule B, list your tax liability for each day. Your liability includes:

  • The federal income tax you withheld from your employees'  
    paychecks, and

  • Both employee and employer social security and Medicare  
    taxes.

Do not use the Schedule B to show federal tax deposits. The IRS gets deposit data from electronic funds transfers.

The IRS uses Schedule B to determine if you have deposited your federal employment tax liabilities on time. If you do not properly complete and file your Schedule B with Form 941 or Form 941-SS, the IRS may propose an “averaged” failure-to-deposit penalty. See Deposit Penalties in section 11 of Pub. 15 (Circular E) for more information.

Who Must File?

File Schedule B if you are a semiweekly schedule depositor. You are a semiweekly depositor if you reported more than $50,000 of employment taxes in the lookback period or accumulated a tax liability of $100,000 or more on any given day in the current or prior calendar year. See section 11 of Pub. 15 (Circular E) for more information.

Do not complete Schedule B if you have a tax liability that is less than $2,500 during the quarter.

When Must You File?

Schedule B is filed with Form 941, Employer's QUARTERLY Federal Tax Return, or Form 941-SS, Employer's QUARTERLY Federal Tax Return (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands). Therefore, the due date of Schedule B is the same as the due date for the applicable Form 941 or Form 941-SS.

Do not file Schedule B as an attachment to Form 944, Employer's ANNUAL Federal Tax Return. Instead, if required to file a report of tax liability with Form 944, use Form 945-A, Annual Record of Federal Tax Liability.


More Online Instructions