Learn how to determine your payroll depositor frequency, and set up or change your frequency in QuickBooks Desktop.
The IRS and state withholding agencies determine how often you need to pay your federal 941 taxes (federal withholding, Social Security, and Medicare) and your state withholding tax. How often you pay is known as depositor frequency. Your depositor frequency depends on the amount of your tax liability during a given time called a lookback period. Your frequency can change over time as your payroll changes.
You’ll need to add your federal 941 and state withholding deposit frequencies in QuickBooks Desktop so your tax payments can be paid on time. You may also need to update them if your frequency changes.
Step 1: Determine your depositor frequency
- 941 federal taxes: Your deposit frequency is found in the same letter from the IRS that has your new Federal Employer Identification Number (FEIN). If you don’t have this letter, contact the IRS.
- State withholding tax: If your state has withholding tax, you should have received a payment coupon book with your deposit frequency. If you didn’t get one, contact your state withholding agency.
Step 2: Understand your tax deposit frequency
The IRS has two deposit frequencies: semiweekly and monthly
- If your paycheck date is Wednesday, Thursday, or Friday, your taxes are due the following Wednesday.
- If your paycheck date is Saturday, Sunday, Monday, or Tuesday, your taxes are due the following Friday.
- If you’re a monthly payroll tax depositor, you need to pay your taxes for the current month by the 15th day of the following month. If the 15th falls on a weekend or a federal holiday, you need to deposit the next banking day.
State withholding deposit frequencies vary. Check out your state agency website for details.