November 23, 1992
IRS Explains New Deposit Rules to Employers
The Internal Revenue Service is now mailing notices to the
country's six million employers, explaining the new deposit schedule
they will follow for their 1993 employment taxes. The mailout will
continue over the next couple of weeks. The new rules easing the
tax deposit burden take effect January 1, 1993, but include a
one-year transition period to allow employers adequate time to
change their payroll systems.
Employers who reported $50,000 or less of employment taxes
during the period of July 1, 1991, through June 30, 1992, will
deposit their taxes for each month in 1993 by the 15th of the
following month. About 75 percent of employers are expected to be
on this schedule. All others will be following the semi-weekly
rule, depositing by the Wednesday or Friday after payday -- by
Wednesday for paydays falling on Wednesday, Thursday or Friday; by
Friday for all other paydays.
Employers with under $500 of taxes for the calendar quarter may
skip the deposits and pay the taxes with their quarterly employment
tax return. Employers accumulating $100,000 during their normal
monthly or semi-weekly period must deposit by the next banking day.
All new employers will be monthly depositors. The new rules do
not apply to domestic household employers. Special rules for
holidays will ensure that employers have at least three banking days
after payday to make deposits. Employers will not face penalties if
their deposits satisfy either the old or new rules during 1993.
Previous | Next
1992 IRS News Releases | News Releases Main | Home