Payroll Tax Deadlines Every Small Business Owner Must Know

Payroll tax compliance is unforgiving. The IRS charges steep penalties for late deposits and late filings — and "I didn't know" is not an accepted excuse. Here are the deadlines you need to know.

How often you deposit depends on your deposit schedule, which the IRS assigns based on your payroll tax liability from the prior year.

Deposit taxes by the 15th of the following month.

• Example: January payroll taxes → due February 15

• Payroll paid Wednesday, Thursday, or Friday → deposit by the following Wednesday
• Payroll paid Saturday, Sunday, Monday, or Tuesday → deposit by the following Friday

New employers are monthly depositors for their first year.

File Form 941 (Employer's Quarterly Federal Tax Return) by:

• April 30 — Q1 (January–March)
• July 31 — Q2 (April–June)
• October 31 — Q3 (July–September)
• January 31 — Q4 (October–December)

File Form 940 (FUTA) by January 31 of the following year.

• January 31 — Distribute W-2s to employees and 1099-NECs to contractors
• January 31 — File W-2s with the Social Security Administration
• January 31 — File 1099-NECs with the IRS

The IRS penalty for late payroll tax deposits is tiered:

• 1–5 days late: 2%
• 6–15 days late: 5%
• 16+ days late: 10%
• 10+ days after first IRS notice: 15%

These penalties add up fast. A $10,000 deposit that's 3 weeks late costs $1,000 in penalties alone.

The most serious payroll tax penalty is the Trust Fund Recovery Penalty (TFRP). If you withhold taxes from employees but don't remit them to the IRS, the IRS can assess the TFRP against you personally — even if your business is an LLC or corporation. This penalty equals 100% of the unpaid taxes and cannot be discharged in bankruptcy.

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