Taxes & Compliance: Understanding Deposit Frequency vs Filing Frequency

Taxes & Compliance: Understanding Deposit Frequency vs Filing Frequency

Understanding Deposit Frequency vs. Filing Frequency

Why This Matters

When processing payroll, Deposit Frequency and Filing Frequency are two different tax compliance requirements. Although they sound similar, they serve different purposes.

Understanding the difference can help ensure your payroll taxes are paid and reported correctly, reducing the risk of penalties or late filings.

Deposit Frequency

Deposit Frequency refers to how often payroll taxes must be paid (deposited) to the IRS or applicable state tax agency.

These deposits typically include:

  • Federal Income Tax (FIT)

  • Social Security Tax

  • Medicare Tax

  • Applicable state payroll taxes

Common Deposit Schedules

Monthly

  • Payroll taxes are generally due by the 15th of the following month.

Semi-Weekly

  • Deposit due dates depend on the day payroll is processed.

Next-Day

  • Required for employers with larger payroll tax liabilities.

Important to Know

  • Your deposit frequency is assigned by the IRS and/or your state tax agency based on your payroll tax liability during a designated lookback period.

  • If your deposit frequency changes, you should update your payroll account so taxes continue to be deposited correctly.

  • Failure to follow your assigned deposit schedule may result in penalties and interest from the tax agency.

Filing Frequency

Filing Frequency refers to how often payroll tax forms and reports must be submitted to federal, state, or local tax agencies.

These filings report:

  • Employee wages

  • Taxes withheld

  • Employer tax liabilities

Common Filing Schedules

Quarterly

  • Most employers file federal Form 941 every calendar quarter.

Annually

  • Some small employers file Form 944 once per year.

Monthly or Semi-Monthly

  • Certain states require more frequent reporting depending on business activity or industry requirements.

Important to Know

  • Filing frequency is assigned by each tax agency when your business registers for payroll taxes.

  • Tax agencies may change your filing frequency as your business grows or your payroll activity changes.

  • Filing deadlines are separate from tax deposit deadlines. Meeting one requirement does not satisfy the other.

Key Differences at a Glance

Deposit Frequency

Filing Frequency

Refers to paying payroll taxes

Refers to submitting payroll tax forms

Determines when taxes are deposited

Determines when tax reports are filed

Assigned by the IRS or state based on tax liability

Assigned by the IRS or state based on filing requirements

Examples: Monthly, Semi-Weekly, Next-Day

Examples: Quarterly, Annual, Monthly

Best Practices

  • Review any notices received from the IRS or state tax agencies regarding changes to your deposit or filing schedules.

  • Update your payroll account if your assigned deposit frequency changes.

  • Process payroll on time to help ensure tax deposits and filings are completed by their required deadlines.

  • Keep copies of all agency notices regarding deposit or filing frequency changes for your records.

  • Contact Aaniie Support if you have questions about updating your payroll account or understanding your assigned schedules.

Need Assistance?

If you've received a notice from the IRS or a state agency changing your deposit frequency or filing frequency, or you're unsure what applies to your business, contact Aaniie Support at support@aaniie.com.



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