How-To Tuesday: Adding/Updating your Deposit Schedule on PayWow


For taxes reported on Form 941, there are two deposit schedules: monthly or semiweekly. Your deposit schedule determines when you must pay Social Security, Federal income tax withholding, and Medicare tax deposits. 

Each year, the IRS determines a deposit schedule for each EIN. Before the beginning of each calendar year, you must be aware of which deposit schedule you must use. The deposit schedule you must use is based on the total tax liability you reported during a lookback period. Your deposit schedule isn’t determined by how often you pay your employees or make deposits.

If you use an online payroll service such as PayWow, we will deposit all of your payroll taxes for you. Once you receive your deposit schedule for the IRS, you can update your PayWow account with the correct schedule, and PayWow will take care of the rest! However, it is still important to always be aware of your deposit schedule and reporting deadlines. Here is some helpful information to know about IRS deposit schedules: 

Lookback Period

An employer’s lookback period is the 12-month time frame ending June 30th of the previous year, which is divided into four quarters. The lookback period calculated the total employment taxes paid by an employer and their tax liability for the year. It will also determine which schedule an employer must use to deposit their tax liability. 

Monthly Deposit Schedule

You’re a monthly schedule depositor for a calendar year if the total tax reported for your lookback period was $50,000 or less.

If you are following a monthly deposit schedule, you should deposit accumulated taxes on payments made during a calendar month by the 15th day of the following month. 

Semi-Weekly Deposit Schedule

You’re a semiweekly schedule depositor for a calendar year if the total taxes during your lookback period were more than $50,000. 

When following a semi-weekly deposit schedule, tax deposits are due based on the following schedule:

  • If payday is on a Saturday, Sunday, Monday, or Tuesday, deposits are due on the following Friday
  • If payday is on Wednesday, Thursday, or Friday, deposits are due the following Wednesday 

New employers

Your tax liability for any quarter in the lookback period before the date you started or acquired your business is considered to be zero. Therefore, you’re a monthly schedule depositor for the first calendar year of your business. 

Deposit Schedule on PayWow

Follow these steps to add/update your deposit schedule information on PayWow

  1. Sign in to your PayWow account 
  2. Navigate to the “Settings” tab
  3. Click “Tax Compliance Settings”
  4. Add your business’s federal tax details as shown on all legal documents and IRS records 
    1. Select your company type
      1. Sole proprietor or single-member LLC
      2. S-corporation or LLC as S-Corp
      3. C-corporation or LLC as C-Corp
      4. Partnership or LLC as a partnership
      5. Exempt organization (church)
      6. Exempt Organization (other than a church)
      7. Estates
    2. Select federal filing form
      1. Form 941
      2. Form 944
    3. Select federal deposit schedule 
      1. Semi-weekly
      2. Monthly 
  5. Click the “Save” button 

PayWow

PayWow is here to help you simplify and automate your payroll process. When you use an online payroll software such as PayWow, we will make all your payroll deposits for you, so you never have to worry about missing an important deposit deadline! Ensuring your business remains tax compliant is easy with PayWow!


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