Payroll Tax Deposit Schedules: Monthly vs. Semi-weekly for 2026

The IRS does not just want your payroll taxes — it wants them on time. Whether you deposit monthly or semi-weekly, missing a deadline by even a single day triggers penalties. The system is based on a "lookback period" that determines your deposit frequency, and there is a special next-day rule for large accumulations. For South Dakota employers, you also have a separate state deposit schedule for SUI, SUI, and PIT through the EDD. This guide explains exactly how both systems work so you never pay a late-deposit penalty.

The IRS Lookback Period: How Your Schedule Is Determined

The IRS uses a lookback period to determine whether you are a monthly or semi-weekly depositor. Your deposit schedule for an entire calendar year is based on the total tax liability you reported on Form 941 during a specific four-quarter window in the past.

For calendar year 2026, the lookback period is July 1, 2024, through June 30, 2025 — the 12-month period ending the preceding June 30. Specifically, it covers the four quarters of Form 941 filings from:

• Q3 2024 (July–September 2024)
• Q4 2024 (October–December 2024)
• Q1 2025 (January–March 2025)
• Q2 2025 (April–June 2025)

You add up the total taxes reported on line 12 of Form 941 for all four of these quarters. The combined total determines your deposit schedule for the entire 2026 calendar year:

Your deposit schedule is set for the full calendar year and does not change mid-year based on current-year activity (with one exception: the $100,000 next-day rule, covered below). Even if your current-year taxes are significantly higher or lower than the lookback period, you stay on the schedule determined by the lookback.

Monthly Deposit Schedule

If your lookback period liability was $50,000 or less, you are a monthly depositor. Under this schedule:

• You accumulate your payroll tax liability for an entire calendar month
• You deposit the total by the 15th of the following month
• If the 15th falls on a weekend or federal holiday, the deadline extends to the next business day

Example: All payroll taxes (FICA employer and employee shares plus withheld federal income tax) for January 2026 paychecks are due by February 17, 2026 (since February 15 is a Sunday and February 16 is Presidents' Day).

Monthly depositing is simpler and is the schedule most small businesses fall under. If you have 10 employees earning an average of $50,000 per year, your total Form 941 liability would be roughly $76,500 per year — above $50,000 — so even a business of this size might be a semi-weekly depositor. The threshold is lower than many people expect.

Semi-weekly Deposit Schedule

If your lookback period liability was more than $50,000, you are a semi-weekly depositor. Despite the name, "semi-weekly" does not mean twice a week — it means deposits are tied to your payday on either a Wednesday or Friday schedule:

• If your payday falls on Wednesday, Thursday, or Friday: Deposit by the following Wednesday
• If your payday falls on Saturday, Sunday, Monday, or Tuesday: Deposit by the following Friday

This gives you three banking days (not calendar days) after the payday to make the deposit. Weekends and federal holidays do not count as banking days, which can effectively extend the deadline.

Example: You pay employees on Friday, January 9, 2026. As a semi-weekly depositor, your taxes are due by Wednesday, January 14, 2026 (three banking days: Monday the 12th, Tuesday the 13th, Wednesday the 14th).

Example with holiday: You pay employees on Friday, January 16, 2026. The following Monday, January 19, is Martin Luther King Jr. Day (a federal holiday). Your three banking days are Tuesday the 20th, Wednesday the 21st, and Thursday the 22nd — so the deposit is due Thursday, January 22, 2026.

The $100,000 Next-Day Deposit Rule

Regardless of whether you are a monthly or semi-weekly depositor, a special rule kicks in when your accumulated tax liability reaches $100,000 or more:

• If you are a semi-weekly depositor and accumulate $100,000 or more in taxes on any day during a deposit period, you must deposit by the next business day
• If you are a monthly depositor and accumulate $100,000 or more at any point during the month, you must deposit by the next business day — and you are immediately reclassified as a semi-weekly depositor for the remainder of the calendar year and the following calendar year

Rules for New Employers

If you are a new employer with no lookback period history (because you did not exist or did not have employees during the lookback period), the IRS treats your lookback period liability as zero. This means new employers start as monthly depositors.

However, if you trigger the $100,000 next-day rule at any point during your first year, you will be reclassified as a semi-weekly depositor for the remainder of that year and the following year.

New employers should be aware that even with a monthly schedule, the deposit is still due by the 15th of the following month — not quarterly. A common mistake is confusing the quarterly filing schedule (Form 941) with the deposit schedule. You file 941 quarterly, but you deposit taxes monthly or semi-weekly.

EFTPS: How to Make Federal Tax Deposits

All federal tax deposits must be made electronically through the Electronic Federal Tax Payment System (EFTPS). Paper tax deposit coupons (Form 8109) have not been accepted since 2011.

To set up EFTPS:

1. Go to eftps.gov and enroll using your EIN
2. You will receive a PIN by mail within 5-7 business days
3. Once enrolled, you can schedule payments online or by phone (1-800-555-4477)
4. Payments can be scheduled up to 365 days in advance
5. Same-day payments are not available through EFTPS — you need to initiate your payment at least one business day before the due date. For same-day wire, you must contact your financial institution directly

When making an EFTPS deposit, you must specify the tax type (Form 941 for payroll taxes), the tax period, and the amount. Make sure the tax period matches the quarter for which the liability was incurred, not the quarter in which you are making the deposit.

Penalties for Late Deposits

The IRS imposes a tiered penalty structure for late payroll tax deposits. The penalty is based on how late the deposit is:

• 1-2 calendar days late: 2% penalty
• 3-5 calendar days late: 5% penalty
• 6-15 calendar days late: 10% penalty
• More than 15 calendar days late: 15% penalty
• Amounts not deposited and instead paid with Form 941: 15% penalty if paid more than 10 days after the date of the first IRS notice demanding payment

These percentages apply to the amount of the underpayment, not your total tax liability. So if you owe $10,000 and deposit $8,000 on time but the remaining $2,000 is 4 days late, the 5% penalty applies to the $2,000 shortfall — a penalty of $100.

Trust Fund Recovery Penalty

Payroll taxes withheld from employees (federal income tax, Social Security, and Medicare) are considered trust fund taxes — you hold them in trust for the government. If these taxes are not deposited, the IRS can assess a Trust Fund Recovery Penalty (TFRP) equal to 100% of the unpaid trust fund taxes against any "responsible person" — which can include business owners, officers, and even bookkeepers or payroll managers who had authority over the funds.

The TFRP is one of the most severe penalties in the tax code. It is personal liability — meaning it follows the individual even if the business closes or goes bankrupt. The IRS takes unpaid payroll taxes extremely seriously.

South Dakota state Tax Deposits

In addition to federal deposits through EFTPS, South Dakota employers must deposit state payroll taxes through the SD UI's e-Services for Business portal. South Dakota's deposit schedule works differently from the federal system:

South Dakota Deposit Schedules

• Semi-weekly: If you withhold more than $350 in PIT during any payroll period, you must deposit within the semi-weekly schedule (similar timing to the federal schedule)
• Monthly: If you withhold $350 or less in PIT per payroll period but more than $350 per quarter, deposit monthly by the 15th of the following month
• Quarterly: If your total PIT withholding is $350 or less per quarter, you can deposit quarterly with your DE 9 filing

SUI and ETT (employer-paid taxes) are reported and paid quarterly on the DE 9 and DE 9C forms, due by the last day of the month following each quarter. SUI withholding follows the same deposit schedule as PIT withholding.

For details on South Dakota's state taxes, see our South Dakota Payroll Taxes 2026 guide.

Quarterly Filing: Form 941

Regardless of your deposit schedule, all employers must file IRS Form 941 quarterly to report wages paid, tips received, federal income tax withheld, and both employer and employee shares of Social Security and Medicare taxes. The filing deadlines are:

• Q1 (January–March): Due April 30
• Q2 (April–June): Due July 31
• Q3 (July–September): Due October 31
• Q4 (October–December): Due January 31 of the following year

If you deposited all taxes in full and on time for the quarter, you get an automatic 10-day extension (e.g., Q1 deadline becomes May 10 instead of April 30).

Very small employers (annual liability of $1,000 or less) may be eligible to file Form 944 annually instead of 941 quarterly. The IRS must notify you of your eligibility — you cannot simply choose to file 944 without IRS approval.

The bottom line: deposit schedules and filing schedules are two different things. You deposit taxes monthly or semi-weekly, but you file Form 941 quarterly. Do not confuse the two — depositing quarterly (only when the taxes are due with the 941) will result in late-deposit penalties every single quarter.