13.4 Form 941 & Payroll Deposits
Key Takeaways
- Lookback period: 12 months ending June 30 of the second preceding year.
- Monthly depositor: lookback liability ≤ $50,000. Semi-weekly: > $50,000.
- $100,000 next-day deposit rule: any single-day liability ≥ $100,000 due next business day.
- Form 941: quarterly (Apr 30, Jul 31, Oct 31, Jan 31). Form 944: annual if liability ≤ $1,000.
- Form 943 for agricultural employers; Form 940 for FUTA (Jan 31).
- 2025 FICA: SS 6.2% to $176,100 wage base ($10,918.20 max each side); Medicare 1.45% uncapped + 0.9% additional above $200K/$250K thresholds.
- W-2 / W-3 furnish-and-file deadline: January 31 (paper or e-file). 1099-NEC also Jan 31. 1099-MISC paper Feb 28 / e-file Mar 31.
Why This Matters for the Exam
Deposit timing is heavily tested. Know the lookback period, deposit schedules, the $100,000 next-day rule, and the 2025 FICA/Medicare numbers.
Expect at least 3-4 questions on deposits.
2025 FICA / Medicare Quick Reference
| Item | 2025 Amount |
|---|---|
| Social Security wage base | $176,100 (up from $168,600 in 2024) |
| SS rate (each side) | 6.2% |
| Maximum employee SS tax | $10,918.20 |
| Maximum employer SS tax | $10,918.20 |
| Maximum SE Social Security portion | $21,836.40 (both sides) |
| Medicare rate (each side) | 1.45% on all wages (no cap) |
| Additional Medicare (employee only) | 0.9% on wages above $200K Single / $250K MFJ / $125K MFS |
| Combined SE tax rate | 15.3% (12.4% SS up to $176,100 + 2.9% Medicare unlimited) |
| Half SE tax deduction | Still deductible as adjustment to income (unchanged) |
Employers must withhold the additional 0.9% Medicare from any employee whose wages with that employer exceed $200,000 in the calendar year — regardless of filing status. The employer does not match the 0.9%.
Determining Deposit Schedule
| Lookback Liability | Schedule |
|---|---|
| ≤ $50,000 | Monthly depositor |
| > $50,000 | Semi-weekly depositor |
Lookback Period
| Tax Year | Lookback Period |
|---|---|
| 2025 | July 1, 2023 – June 30, 2024 |
| 2026 | July 1, 2024 – June 30, 2025 |
| 2027 | July 1, 2025 – June 30, 2026 |
Deposit Due Dates
| Depositor | Payday | Deposit Due |
|---|---|---|
| Monthly | Any | 15th of following month |
| Semi-weekly | Wed–Fri | Following Wednesday |
| Semi-weekly | Sat–Tue | Following Friday |
The $100,000 Next-Day Rule
| Rule | Description |
|---|---|
| Trigger | $100,000+ accumulated payroll tax liability on any single day |
| Due | Next business day |
| Effect | Employer becomes semi-weekly for the remainder of the year and all of the following year |
EFTPS
All federal tax deposits must be made electronically through EFTPS (Electronic Federal Tax Payment System). Form 8109 paper coupons are obsolete.
Form 941 Due Dates
| Quarter | Period | Due Date |
|---|---|---|
| Q1 | Jan–Mar | April 30 |
| Q2 | Apr–Jun | July 31 |
| Q3 | Jul–Sep | October 31 |
| Q4 | Oct–Dec | January 31 |
Form 944 (Annual Small Employer)
| Requirement | Description |
|---|---|
| Eligible | Annual liability ≤ $1,000 |
| Due | January 31 |
| IRS notice | Must receive IRS permission to file 944 instead of 941 |
Form 943 (Agricultural)
| Element | Description |
|---|---|
| Used by | Employers of farmworkers |
| Filed | Annually |
| Due | January 31 |
De Minimis Rule
| Liability | Procedure |
|---|---|
| < $2,500 for the quarter | Pay with Form 941 (no deposit required) |
W-2 / W-3 and 1099 Reporting Deadlines
| Form | Furnish to recipient | File with SSA / IRS |
|---|---|---|
| W-2 / W-3 | January 31 | January 31 (paper or e-file) |
| 1099-NEC | January 31 | January 31 |
| 1099-MISC | January 31 (Box 8/10: Feb 15) | Paper Feb 28 / e-file March 31 |
2025 1099 thresholds:
- 1099-NEC — $600 (unchanged for 2025). OBBBA raises the threshold to $2,000 (indexed) starting tax year 2026 — does NOT apply to 2025 returns.
- 1099-MISC — $600 (also rises to $2,000 in 2026 under OBBBA).
- 1099-K (TPSO payments) — OBBBA permanently reset the threshold to $20,000 AND more than 200 transactions for 2025 and forward, ending the IRS phase-down that would have lowered it to $600.
Form W-9 and Backup Withholding
- Form W-9 — used to gather the contractor's TIN before payment.
- Backup withholding — 24% federal income tax withholding when the payee fails to provide a TIN, the IRS notifies of a name/TIN mismatch, or a second B-notice is received.
Lookback Calculation Example (for 2025)
| Quarter | Liability |
|---|---|
| Q3 2023 | $12,000 |
| Q4 2023 | $15,000 |
| Q1 2024 | $14,000 |
| Q2 2024 | $11,000 |
| Total | $52,000 |
| Result | Semi-weekly depositor for 2025 |
Real-World Scenario (2025)
Scenario: A semi-weekly depositor pays Friday bonuses, creating a $110,000 single-day liability.
- $100,000 rule: Triggered.
- Deposit due: Following Monday (next business day).
- Future: Semi-weekly for the rest of 2025 and all of 2026.
On the Exam
Expect 3-4 questions on deposits and payroll forms, typically:
- Lookback Questions: "What is the 2025 lookback period?"
- Schedule Questions: "$45,000 lookback — which schedule?"
- $100,000 Questions: "When is the deposit due?"
- 2025 Number Questions: "What is the 2025 SS wage base?" / "Maximum employee SS tax?"
The key is to remember: Lookback = July 1 – June 30 of the second prior year. ≤ $50K = monthly. > $50K = semi-weekly. $100K = next day. 2025 SS wage base = $176,100; max employee SS tax = $10,918.20. W-2 and 1099-NEC due Jan 31.
$45,000 lookback liability for July 1, 2023 – June 30, 2024. 2025 deposit schedule?
Semi-weekly depositor: Friday $110,000 liability. Deposit due when?
What period is lookback for 2025 deposit schedule?
What is the 2025 Social Security wage base and maximum employee SS tax?