How often must employers pay federal payroll taxes?

Employers are required to deposit federal payroll taxes according to the frequency determined by the total tax liability. Semi-weekly or monthly are the two primary schedules for employers based on their payroll tax obligations.

The semi-weekly schedule is used for employers whose tax liability is greater than $100 on a lookback period basis, meaning they must make tax deposits on specified days of the week. These are typically the days after payroll is paid - specifically, if payroll is paid on a Friday, the deposit for that payroll is due by the following Wednesday, and if paid on a Saturday to Sunday, the deposit is due by the following Friday.

On the other hand, the monthly schedule applies to employers with a tax liability of $100 or less during the lookback period. Employers using this schedule must deposit their payroll taxes by the 15th of the following month for the taxes owed in the previous month.

This detailed structure accounts for the variability in employment practices and the size of companies, ensuring compliance with federal tax regulations. The other payment frequencies mentioned, like annually or semi-annually, are not applicable for payroll tax obligations, as payroll taxes need to be deposited more frequently to ensure timely compliance with federal requirements.