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    100K next-day deposit rule for 941 taxes

    Article ID: 2000664

    Overview

    This article contains information about the $100,000 Next-Day Deposit Rule.

    Assumptions

    You have a payroll that has a federal tax liability of $100,000 or more.

    Details

    100K Next-Day Deposit Rule: When any single payroll (or a combination of payrolls within an assigned "Deposit Period") has a federal tax liability amount that exceeds $100,000.00 (line 10 of Form 941 or line 9 of Form 944), you must deposit the tax by the next banking day. Whether you are a monthly or semi-weekly scheduled depositor, you must remain on a semi-weekly schedule for the remainder of the year and the following year.

    • For a complete description on the $100,000 Next-Day Deposit Rule, see page 27 of the IRS Publication 15.
    • For more information on deposit schedules, see Publication 3151.

    Service Specific Information

    QuickBooks E-pay service

    You must make the payment directly to the IRS instead of using the QuickBooks E-pay service if you accumulate $100,000 or more of 941 taxes on any day during a deposit period. You can:
    1. Make a payment through the EFTPS website (www.EFTPS.com) or through the EFTPS phone system (1.800.555.3453).  Note: You can use the same Login Requirements that you use in e-paying in QuickBooks.
    2. Create a liability check in QuickBooks to record your payment, and assign EFTPS to the check number.

      Note: If you use the QuickBooks E-pay service, your payment will be processed in 2 banking days (at least). IRS will consider the payment to be late and you may be penalized.

    Intuit Online Payroll

    After you run payroll, you will receive a warning if you reach more than $100,000 in federal tax liability. This payment will be considered timely to the IRS if the payment is created at least two business days before the payment due date.

    Example:

     

    SundayMondayTuesdayWednesdayThursdayFridaySaturday
    submit payroll submit payment to IRSpay day
    payment received by IRS




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