Short answer
For 2026, a Form 941 filer is a monthly depositor if it reported $50,000 or less of employment taxes in the lookback period (July 1, 2024, to June 30, 2025), and a semiweekly depositor if it reported more. Monthly depositors pay each month's taxes by the 15th of the next month. Semiweekly depositors pay Wednesday, Thursday and Friday paydays by the next Wednesday, and Saturday to Tuesday paydays by the next Friday. Any day you reach $100,000 or more, deposit by the next business day.
When you run payroll, the income tax you withhold and the social security and Medicare taxes (both your share and the employee's) don't go to the IRS once a year. They are deposited during the year on a schedule the IRS assigns from your history. Getting the schedule wrong is one of the most common ways small employers end up with penalties.
The rules below come from IRS Publication 15 (2026), Employer's Tax Guide, linked at the end. They apply to employers who file the quarterly Form 941.
Monthly or semiweekly: how to find your 2026 schedule
Your schedule for a calendar year depends on the total taxes you reported on Form 941 during a 12-month lookback period that runs from July 1 to June 30. For 2026, that is July 1, 2024, to June 30, 2025.
| Taxes reported in the lookback period | Your 2026 deposit schedule |
|---|---|
| $50,000 or less | Monthly |
| More than $50,000 | Semiweekly |
How often you pay employees doesn't decide this. A business that pays weekly can be a monthly depositor, and one that pays monthly can be semiweekly.
New employers: if you had no payroll in the lookback period, your taxes for it count as zero, so you are a monthly depositor for your first calendar year, unless the $100,000 rule below applies.
Deposit deadlines
Monthly schedule: deposit the taxes on wages paid during a month by the 15th day of the following month. Taxes on September 2026 paychecks, for example, were due by October 15. If a deposit date falls on a weekend or legal holiday, the deposit is on time if made by the next business day.
Semiweekly schedule: the deadline depends on the payday.
| If payday falls on | Deposit by |
|---|---|
| Wednesday, Thursday or Friday | The following Wednesday |
| Saturday, Sunday, Monday or Tuesday | The following Friday |
The $100,000 next-day rule: if you accumulate $100,000 or more in taxes on any day during a deposit period, deposit them by the next business day, whichever schedule you are on. A monthly depositor that hits this becomes a semiweekly depositor the next day, for the rest of that year and all of the following year.
Small employers: if your total tax liability for the current quarter or the prior quarter is less than $2,500, and you didn't trigger the $100,000 rule this quarter, you can pay with your timely filed Form 941 instead of making deposits.
How to make payroll tax deposits
All federal tax deposits must be made by electronic funds transfer. Publication 15 lists the Electronic Federal Tax Payment System (EFTPS), IRS Direct Pay and your IRS business tax account as options. Schedule deposits a day or two ahead so a bank delay doesn't make you late.
What gets deposited: 2026 rates
| Tax | 2026 rule |
|---|---|
| Federal income tax withheld | Based on each employee's Form W-4 |
| Social security | 6.2% from the employee and 6.2% from you, on wages up to $184,500 |
| Medicare | 1.45% from the employee and 1.45% from you, no wage limit |
| Additional Medicare Tax | 0.9% withheld from the employee only, on wages over $200,000 in the year |
Federal unemployment tax (FUTA) is separate and paid only by the employer. For 2026 the rate is 6.0% on the first $7,000 of each employee's wages, and the credit for state unemployment tax can be as much as 5.4%. You deposit FUTA when the amount owed for a quarter, including any carried forward, is more than $500; otherwise carry it to the next quarter.
Form 941 due dates
| Quarter | Form 941 due |
|---|---|
| January to March | April 30 |
| April to June | July 31 |
| July to September | October 31 |
| October to December | January 31 |
Form 941 reports the wages, withholding and deposits for the quarter. The deposits come first; the form reconciles them.
Penalties for late deposits
| Deposit made | Penalty |
|---|---|
| 1 to 5 days late | 2% of the unpaid deposit |
| 6 to 15 days late | 5% |
| 16 or more days late, but before 10 days from the first IRS notice asking for the tax; also amounts paid directly to the IRS or with the return instead of deposited | 10% |
| More than 10 days after the first IRS notice or a demand for immediate payment | 15% |
Days are counted in calendar days. An automated payroll service that deposits on schedule is the simplest way to avoid these.
A quick worked example
A business reported $38,000 in employment taxes from July 2024 to June 2025, so it is a monthly depositor for 2026. It pays staff every Friday. The taxes from all of its November 2026 paydays are due together by December 15, 2026. If it had reported $60,000 instead, it would be semiweekly: each Friday payday's taxes would be due the following Wednesday.
How Top Accounting Firm can help
Our payroll service works out your deposit schedule, makes the federal deposits on time and files Form 941 every quarter. Hiring for the first time? Read independent contractor vs. employee first, and keep payroll records for at least four years (see how long to keep business records). Or book a free consultation.
Frequently asked questions
How do I know if I am a monthly or semiweekly depositor?
When are monthly payroll tax deposits due?
When are semiweekly deposits due?
What is the $100,000 next-day deposit rule?
What deposit schedule does a new employer use?
What is the penalty for a late payroll tax deposit?
Sources
- IRS: Publication 15 (2026), Employer's Tax Guide
- IRS: Depositing and reporting employment taxes
- IRS: About Form 941, Employer's Quarterly Federal Tax Return
Checked against these sources on October 26, 2026. This article is general information, not tax or legal advice. Rules, fees and deadlines change, so confirm with the official source or a tax professional before you file.
