📝 Overview
When managing payroll taxes, deposit frequency and filing frequency are two separate obligations that are easy to confuse. This article explains the difference between them, how to determine the right deposit schedule for your business, and how to contact the IRS when needed.
🔑 Deposit Frequency vs. Filing Frequency
These two terms refer to different payroll tax responsibilities and should not be used interchangeably.
Deposit Frequency
Deposit frequency refers to how often you must remit payroll taxes, such as federal income tax, Social Security, and Medicare, to the IRS. Your deposit schedule is determined by the IRS based on your total tax liability over a lookback period.
Common deposit frequencies:
Monthly: Deposits are due by the 15th of the following month.
Semi-weekly: Deposits are made on Wednesdays or Fridays, depending on when you pay your workers.
Next-day: Required if your tax liability exceeds $100,000 on any single day. Deposits are due the next banking day.
⚠️ Important Note: Failing to follow your assigned deposit schedule may result in IRS penalties and interest.
Filing Frequency
Filing frequency refers to how often you must submit payroll tax forms, such as Form 941 or your state's equivalent, to federal, state, or local tax agencies. These filings report wage and tax details for a specific period and ensure proper tax reconciliation.
Common filing frequencies:
Quarterly: Form 941 is submitted at the end of each calendar quarter.
Annually: Some small businesses or special employment types file certain forms once a year, such as Form 944.
Monthly or semi-monthly: Some states require more frequent filings depending on total wages paid or industry classification.
💡Filing frequency is typically assigned by each tax agency at the time of registration and may be adjusted based on your business activity.
Key Differences at a Glance
Category | Deposit Frequency | Filing Frequency |
Refers to | Tax payment schedule | Tax form submission schedule |
Determined by | IRS or state lookback period | IRS or state filing requirements |
Affects | Timing of tax deposits | Timing of form submissions |
Examples | Monthly, semi-weekly | Quarterly, annually |
🛠️ How to Determine Your Federal Deposit Schedule
Your federal deposit schedule is based on your total payroll tax liability from the prior year. Follow the steps below to identify which schedule applies to your business.
Confirm your EIN. Make sure you have your Employer Identification Number on hand. The IRS uses this to identify your business and assign your schedule.
Review your prior year payroll tax liability. Add up the total federal income tax, Social Security tax, and Medicare tax withheld from employee wages in the previous calendar year. Check your payroll records or consult your accountant for this figure.
Compare your total liability to the IRS thresholds.
$50,000 or less: You follow the Monthly Deposit Schedule. Deposits are due by the 15th of the following month.
More than $50,000: You follow the Semi-weekly Deposit Schedule. Deposits are due on Wednesdays or Fridays based on your payroll date.
$100,000 or more on any single day: You must deposit the following banking day, regardless of your schedule.
Verify with the IRS. Refer to IRS Publication 15 (Circular E, Employer's Tax Guide) for the most current deposit schedule requirements. Review your schedule each year, as your threshold can change.
View the Employer's Tax Guide at the link below.
💡 If you have questions about your specific deposit schedule, you can contact the IRS directly at (800) 829-4933 or reach out to DaySmart Support for guidance.
📍 How to Contact the IRS for an EIN Verification Letter (147C)
If you need to request an EIN Verification Letter (147C) from the IRS to confirm your business information, follow the steps below.
Call the IRS Business and Specialty Tax line at (800) 829-4933. The line is available Monday through Friday, 7:00 AM to 7:00 PM local time (Pacific time for Hawaii and Alaska).
For shorter wait times, call between 7:00 AM and 10:00 AM or between 3:00 PM and 7:00 PM. Avoid calling on Mondays, as that is typically the busiest day.
Select your preferred language.
Press 1 for Employer Identification Numbers.
Press 3 if you have an EIN but cannot remember it. You will be connected to an IRS agent.
Inform the agent that you need an EIN Verification Letter (147C).
The agent will ask a few security questions to verify you are the business owner or an authorized representative.
Choose whether you would like the 147C letter sent by mail or fax. If you choose fax, you will receive it immediately.
💡 For additional support, visit the IRS official help page.
❓ Frequently Asked Questions (FAQs)
Find answers to common questions or additional details that may not be covered in the main instructions.
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What is the difference between a deposit schedule and a filing frequency?
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Your deposit schedule determines how often you send tax payments to the IRS. Your filing frequency determines how often you submit tax forms reporting those wages and taxes. The two are assigned separately and often operate on different timelines.
How do I know which deposit schedule I am on?
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Your deposit schedule is based on your total federal payroll tax liability from the prior calendar year. If your liability was $50,000 or less, you are on the monthly schedule. If it was over $50,000, you are on the semi-weekly schedule. The IRS typically notifies you of your schedule when you receive your EIN or through other tax correspondence.
Can my deposit schedule change from year to year?
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Yes. Your schedule is reassessed each year based on your prior year tax liability. If your business grew significantly and your tax liability crossed the $50,000 threshold, you would move from monthly to semi-weekly. Review your schedule each year to make sure you are depositing on the correct timeline.
What is a 147C letter and when would I need one?
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A 147C letter is an EIN Verification Letter issued by the IRS that confirms your business's Employer Identification Number. You may need one if you cannot locate your original EIN assignment notice or if a financial institution or government agency requires official EIN verification.
Who should I contact if I have questions about my deposit schedule?
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For questions specific to your assigned schedule or past filings, contact the IRS Business and Specialty Tax line at (800) 829-4933. For questions about how your schedule is configured in DaySmart Payroll, contact DaySmart Support.