Tax Deposit and Form 945 Overview

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There are two types of "depositors." One is a monthly schedule depositor and the other is the semiweekly depositor. The following explains when deposits of federal tax withholdings must be made depending upon which "depositor" you are. Note that you always begin as a monthly scheduled depositor. See below for when your depositing status may change.


Determining Your Deposit Schedule:

There are two deposit schedules — monthly or semiweekly — for determining when you must deposit withheld Federal income tax. These schedules tell you when a deposit is due after a tax liability arises (i.e., you make a payment subject to Federal income tax withholding, including backup withholding). Before the beginning of each calendar year, you must determine which of the two deposit schedules you must use.

For 2007, you are a monthly schedule depositor for Form 945 if the total tax reported on your 2005 Form 945 (line 4) was $50,000 or less. If the total tax reported for 2005 exceeded $50,000, you are a semiweekly schedule deposit.

Caution: If you are a monthly schedule depositor and accumulate a $100,000 liability or more on any day during a calendar month, your deposit schedule changes to semiweekly for the remainder of the year and for the following year. See section 11 of Circular E (Pub. 15) for more information on the $100,000 next-day deposit rule.

Electronic Deposit Requirement:

You must make electronic deposits of all depository taxes (such as employment tax, withheld income tax, excise tax, and corporate income tax) using the Electronic Federal Tax Payment System (EFTPS) in 2007 if:

  • The total deposits of such taxes in 2005 were more than $200,000 or
  • You were required to use EFTPS in 2006.

If you are required to use EFTPS and use Form 8109 instead, you may be subject to a 10% penalty. If you are not required to use EFTPS, you may participate voluntarily. To enroll in or get more information about EFTPS, call 1-800-555-4477 or 1-800-945-8400. Or to enroll online, visit www.eftps.gov.