$100,000 Next-Day Deposit Rule for Federal 941/944/943
This article contains information about the $100,000 Next-Day Deposit Rule.
You have a payroll that has a federal tax liability of $100,000 or more.
$100,000 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 (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.
Service Specific Information
Enhanced Payroll and E-pay Service for QuickBooks Desktop
See also E-pay 940 and 941/944 in QuickBooks
An enhancement has been made to QuickBooks 2014 and later versions. You will be prompted about this rule when creating a paycheck and you accumulate $100,000 or more Federal 940/943/941 taxes:
To pay through the EFTPS Website:
- Make a payment through the EFTPS website (www.EFTPS.com) or through the EFTPS phone system (1.800.555.3453). You can use the same Login Requirements that you use in e-paying in QuickBooks.
- Create a liability check in QuickBooks to record your payment, and assign EFTPS to the check number.
IMPORTANT! 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
|Send Payroll||Submit payment to IRS||Payday||IRS receives payment|
Intuit Full Service Payroll/Quickbooks Full Service Payroll
The IRS penalty for a next day tax deposit not being made on time is automatically 10% of the 941 taxes due.