IRS Publication 931: Deposit Requirements For Employment Taxes

AAA

DEFINITION of 'IRS Publication 931: Deposit Requirements For Employment Taxes'

A document published by the Internal Revenue Service (IRS) that helps employers determine when they are to deposit Social Security, Medicare and income taxes for their employees. Employers must use one of the two authorized employment tax deposit schedules: semi-weekly or monthly. The deposit schedule used is based on the amount of tax liability reported during a lookback period, which is the calendar year preceding the previous year (e.g. the lookback period for 2011 begins in 2009).

INVESTOPEDIA EXPLAINS 'IRS Publication 931: Deposit Requirements For Employment Taxes'

Employers use the monthly deposit schedule if the total tax liability in the lookback year was $50,000 or less, and use the semi-monthly schedule if the total tax liability was over $50,000. For a new employer, the income for the lookback year is considered $0. Employers use Forms 941, 943, 944 or 945 when depositing funds.


The deposit instructions in IRS Publication 931 do not cover federal unemployment tax.

RELATED TERMS
  1. Federal Unemployment Tax Act - ...

    The original legislation that allows the federal government to ...
  2. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  3. Medicare

    A U.S. federal health program that subsidizes people who meet ...
  4. Payroll Tax

    Tax an employer withholds and/or pays on behalf of their employees ...
  5. Social Security

    A United States federal program of social insurance and benefits ...
  6. Value-Added Tax - VAT

    A type of consumption tax that is placed on a product whenever ...
Related Articles
  1. Payroll Deductions Pay Off
    Retirement

    Payroll Deductions Pay Off

  2. Small Business Tax Obligations: Payroll ...
    Taxes

    Small Business Tax Obligations: Payroll ...

  3. Avoid The Social Security Tax Trap
    Taxes

    Avoid The Social Security Tax Trap

  4. 10 Most Overlooked Tax Deductions
    Taxes

    10 Most Overlooked Tax Deductions

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center