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Payroll Deadlines for Semi-Weekly Tax Depositors

In this article:
Semi-weekly Depositor Payroll Run Deadlines
Overriding Pay Date Restrictions for Semi-weekly Tax Depositors
Payrolls with Tax Liabilities over $100,000
IRS Penalties for Late Payroll Tax Deposits

Background

The IRS has imposed an accelerated schedule for depositing payroll taxes if a business has greater than $50,000 in payroll tax liabilities during the lookback period (July 1, 2023 – June 30, 2024).

The IRS website lists the following federal semi-weekly deposit schedule: 

  1. If your payday is on Wednesday, Thursday, or Friday, taxes must be deposited by the following Wednesday.
  2. If your payday is on Saturday, Sunday, Monday, or Tuesday, taxes must be deposited by the following Friday.

Payroll Liabilities Greater Than $100,000

If your business accumulates more than $100,000 in payroll tax liabilities on any single day, additional rules apply:

  1. Next-Day Deposit Rule:
    • You must deposit the liability by the next banking day.
    • Failure to do so can result in immediate penalties, regardless of your usual semi-weekly or monthly deposit schedule.

Semi-weekly Depositor Payroll Run Deadlines

Full Service Payroll customers with a semi-weekly deposit frequency:

  1. You will need to process your payroll one business day in advance of the pay date by 8:00 PM ET.
  2. If you process a payroll after 8:00 PM ET, your pay date must be at least two days later. This is to ensure that Patriot can pay your taxes on time. If you are unsure about your tax deposit frequency see How Do I Know My Tax Deposit Frequency?
  3. If you have direct deposit, your payroll deadlines may be different. See Direct Deposit Funding and Timing Options.

Overriding Pay Date Restrictions for Semi-weekly Tax Depositors

You may encounter a restriction when selecting a pay date that could result in tax deposit delays. Patriot displays a warning to help you avoid penalties.

How to Proceed

If you see this warning, you’ll be given two choices:

  1. Choose a New Pay Date
    • Select a future compliant pay date that aligns with your deposit frequency. This ensures taxes are deposited on time, avoiding penalties.
  2. Override the Restriction
    • If you must proceed with the current pay date, click “Continue with Current Pay Date.”
    • By doing so, you acknowledge the risk of potential tax penalties and are responsible for the consequences.
      1. Please contact our tax team immediately if you choose to deposit the payroll tax liabilities outside of the software.
    • A confirmation email will be sent to you when you override a paydate restriction. 

Payrolls with Tax Liabilities Over $100,000

Please contact our support team before submitting your payroll. Special arrangements are necessary for processing next-day tax deposits as required by the IRS..

IRS Penalties for Late Payroll Tax Deposits

Failing to deposit payroll taxes on time can result in penalties from the IRS. The penalties increase based on how late the deposit is, so it’s critical to adhere to your deposit schedule to avoid unnecessary costs.

IRS Penalty Structure for Late Deposits

  1. 1-5 Days Late
    • Penalty: 2% of the unpaid tax.
  2. 6-15 Days Late
    • Penalty: 5% of the unpaid tax.
  3. 16 or More Days Late
    • Penalty: 10% of the unpaid tax.
  4. Notice of Intent to Levy Issued
    • Penalty: 15% of the unpaid tax if you receive a notice and fail to pay within 10 days.

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