A Federal 941 $100,000 tax payment is significant because it triggers a special IRS deposit rule requiring employers to make a next-day (from pay date) deposit of employment taxes if their total tax liability reaches $100,000 or more on any given day during a deposit period. Once the $100,000 threshold is met, the employer must switch to a semiweekly depositor status.
- When a payroll is processed with a $100,000 Federal 941 tax payment, iSolved emails a notification to Sara Harris. The email includes the client name, check date and Federal tax amount.
- Sara forwards the email to the tax processor, cc the service group with the following message
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Hi Tax Processor Name,
See below the notification for Client Name exceeding the $100k federal tax liability threshold. Please review and pay by the due date.
Service Group: XXXX-XXX
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- Once received, the tax processor will want to review the payment and due date. The payment will need to be paid one business day prior to the due date.
- Tax processor should reply all to email letting service group know the payment has been processed.