$100K Payroll Tax Due ‘Tomorrow’
Wrong. If a business’s payroll-tax liability reaches $100,000 or more on any day during a deposit period, that amount is due immediately the next day to the IRS, regardless of your payment schedule, explains Michael Giammalvo, a tax manager at Crowe, Chizek and Co., a public-accounting and consulting firm in South Bend, Ind.
For employers on a monthly schedule, hitting that $100,000 mark would automatically accelerate you to a semi-weekly schedule for the rest of the calendar year and for the following calendar year as well.
Although the rule is not new, it’s one that can easily be forgotten by small employers who handle payroll internally, Giammalvo adds.
For more information, see "Misuse of Withheld Tax Dollars" in the Premiere issue of The Edward Lowe Report.