Businesses Employer Monthly Schedule Depositor – Payroll Tax Deposit Due March 15, 2022.
If you are required to deposit payroll taxes monthly, then you must submit your February 2022 payroll tax liability by March 15, 2022.
What should employers know about the Employer Monthly Schedule Depositor rules and tax responsibilities?
Federal Income Tax
Employers are generally required to withhold federal income tax from their employees’ wages. You can use the employee’s Form W-4 to determine how much tax to withhold. In addition, employers must use the appropriate method and tax withholding table.
Normally, an employer must withhold part of social security and Medicare taxes from employees’ wages. You must deposit taxes that are withhold from your employee’s paycheck. The amount of the deposit also includes a matching amount or contribution from the employer.
For more information about employee classification and other useful advice for employers, read this article: How to Classify Your Employees and Contractors.
First, employers should understand the payroll process. The payroll process includes:
Calculating and preparing paychecks
Accounting for amounts withheld from these paychecks
Making deposits of taxes withheld from paychecks
Reporting on taxes withheld and deposits made.
Next, all employers must determine which of the two deposit schedules they are required to use. Below are the two schedules to take into consideration:
Semi-weekly schedules are for the largest employers.
Monthly schedules are used by the majority of employers.
Also, some payments for payroll taxes can be made with the either Form 941 or Form 944. In order to make deposits with Forms 941 and 944, employers will need to meet certain criteria.
Another important thing to keep in mind is that the requirement to use one of the two deposit schedules must be determined prior to the beginning of every calendar year.
Furthermore, all employers need to know that Payroll taxes must be deposited with the government in a timely manner. If the employer fails to make a timely deposit, then the employer will be subject to a failure-to-deposit penalty of up to 15 percent.
Finally, in order to avoid penalties on late deposits, employers with monthly deposits should calendar the Employer Monthly Schedule Depositor – Payroll Tax Deposit Due March 15, 2022.
If you need payroll services, you can subscribe to our Payroll services. If you need help determining your filing requirements you can contact us. For immediate assistance you can contact our office today and we will gladly assist you.