One of the many payroll obligations an employer has is the requirement to make payroll tax deposits. A bi-weekly payroll depositor — or a monthly payroll depositor, depending on your classification — is the easiest way to handle that responsibility.
When you should make your payroll deposits is determined by a few factors:
- Make periodic payroll tax deposits based on the collective amount of your actual tax obligation
- The required deposit consists of federal income tax withheld from employees’ wages, the Social Security and Medicare taxes withheld, and an employer’s portion of Social Security and Medicare taxes
After allowing for any credits that you may have received, you will have your net obligation. The amount determines how often you deposit as an employer.
Luckily, you don’t need this information to invest in a bi-weekly payroll depositor or a monthly payroll depositor if you are classified that way. Most payroll software, like AMS Payroll, has a number of options to accommodate a range of businesses and employers.
What Does the IRS Say?
The IRS uses two different sets of deposit rules to determine when businesses must deposit their social security, Medicare, and withheld federal income taxes. These schedules tell you when a deposit is due after you have a payday.
Your deposit schedule is not determined by how often you pay your employees. Your deposit schedule depends on the total tax liability that you reported on Form 941 during the previous four-quarter lookback period:
July 1 of the second preceding calendar year through June 30 of last year.
See section 11 of Publication 15 (Circular E) for details. In 2026, the lookback period for a Form 941 filer who filed Form 944 in either 2024 or 2025 is calendar year 2024. Before the beginning of each calendar year, determine the type of deposit schedule that you must use.
- Monthly schedule depositor: If you reported $50,000 or less in taxes during the lookback period
- Semiweekly schedule depositor: If you reported more than $50,000 of taxes during the lookback period
See $100,000 Next-Day Deposit Rule in section 11 of Pub. 15 (Circular E) if you accumulate $100,000 or more of taxes on any day during the deposit period.
Making Deposits
Deposits must be made using the Electronic Federal Tax Payment System (EFTPS) with a:
- Credit card
- Debit card
- Bank draft
Having payroll software do the work for you is the easiest option. Our AMS Payroll module is available for download and will enable you to stay in compliance with your payroll filing. AMS Payroll supports federal payroll forms like the 941, 940, 943, 944, and 1040 Sch H. It also:
- Includes SUI forms for all 50 states, plus the District of Columbia and Puerto Rico
- Electronically files 941, 944, and 940 forms
- Exports data to the W-2/1099 Forms Filer for year-end processing
- Includes the ability to magnetically/electronically file nearly 30 state quarterly returns
- Records state and federal tax deposit information, as well as disbursements
- Prints Client Letters
- Includes a Certified Payroll report
Regularly review IRS guidelines on rules and regulations regarding your payroll tax deposits.
Frequently Asked Questions
- When do I deposit payroll taxes? – Monthly schedule depositors must deposit payroll taxes by the 15th of the following month that the payroll was made. When semiweekly depositors deposit payroll taxes depends on what day of the week that they issue the payroll.
- Is there a penalty for filing 941 late? – Yes, the IRS’ late deposit penalty ranges from 2% to 15%. The severity of the penalty is based on the lateness of the deposit.
This article was updated on Jan. 18, 2026 to keep its information as fresh as possible. We update this article every six months, before and after tax season, to keep it current with any changes.