We notified taxpayers last November that their deposit requirements will change from monthly to semi-weekly this year. We send CP236 notices to those taxpayers who made no tax deposits in January. Semi-weekly depositors must deposit the Wednesday or Friday after their payroll date. This is a reminder that you may not be following the semi-weekly deposit schedule.
What you need to do
Follow the semi-weekly deposit schedule. If you pay employees or others on Wednesday, Thursday, or Friday, deposit the taxes by the next Wednesday. If you pay on Saturday, Sunday, Monday, or Tuesday, deposit by the next Friday.
Answers to common questions
How do you determine the deposit requirements?
We use a lookback period. For Form 941, it is the four quarters that end on June 30 of the prior year. For annual forms, it is the second previous year. If the total tax on the original return(s) for the lookback period is over $50,000, you are a semi-weekly depositor. If the tax was $50,000 or less, you are a monthly depositor.
What if I did not pay employees during the first three weeks of January?
You don’t need to reply. Just follow the semi-weekly deposit schedule when you have a deposit liability.
Tips for next year
Review the lookback period in October every year to determine the correct deposit requirements for next year.
Tax publications you may find useful
- Publication 15 (Circular E), Employer’s Tax Guide (For Forms 941, 944, 945) (PDF)
- Publication 51 (Circular A), Agricultural Employer’s Tax Guide (For Form 943) (PDF)
- Form 941, Employer's Quarterly Federal Tax Return (PDF) and Instructions (PDF)
- Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees (PDF) and Instructions (PDF)
- Form 944, Employer’s ANNUAL Federal Tax Return (PDF) and Instructions (PDF)
- Form 945, Annual Return of Withheld Federal Income Tax (PDF) and Instructions (PDF)
- Full list of tax forms and instructions
- You can authorize someone to contact the IRS on your behalf.
- See if you qualify for help from a Low Income Taxpayer Clinic.
If you can’t find what you need online, you can call the IRS at the 800, 866, or 888 number listed on the notice.