Federal Tax deposit schedule for a calendar year is determined from?

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Multiple Choice

Federal Tax deposit schedule for a calendar year is determined from?

The deposit schedule is set by how much payroll tax liability you report over a four-quarter look-back period, as shown on Form 941. For a calendar year, that look-back period is the prior year’s four quarters. The total taxes reported during that look-back determine whether you deposit monthly or semiweekly (and there’s a separate rule for next-day deposits if a daily amount is very large). So the key idea is that the schedule depends on the look-back total, not on current-quarter amounts, the number of employees, or total wages paid.

The deposit schedule is set by how much payroll tax liability you report over a four-quarter look-back period, as shown on Form 941. For a calendar year, that look-back period is the prior year’s four quarters. The total taxes reported during that look-back determine whether you deposit monthly or semiweekly (and there’s a separate rule for next-day deposits if a daily amount is very large). So the key idea is that the schedule depends on the look-back total, not on current-quarter amounts, the number of employees, or total wages paid.

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