Question

Summarize the deposit rules for nonagriicultural employers. What is your opinion on the rules.

Answer 1

Summary of Deposit Rules for Nonagricultural Employers Accumulated Unpaid Liability Deposit Requirement

Accumulated Unpaid liability	Deposit Requirement
. $50,000 or less in the lookback period	Monthly depositor: taxes must be deposited on or before the 15th of the following month.
More than $50,000 in the lookback period	Semiweekly depositor: (a) Payday on Wednesday, Thursday, or Friday – must be deposited on or before following Wednesday. (b) Payday on Saturday, Sunday, Monday, or Tuesday – must be deposited on or before following Friday.
$100,000 or more on any day	Must be deposited by the close of the next business day.
. Less than $2,500 at end of calendar quarter	Must be paid by end of following month, either as a deposit or with the quarterly tax return (Form 941).

Deposit rule exceptions and miscellaneous notes: SECA taxes: estimated SECA taxes & FIT taxes are paid quarterly; annual earnings of less than $400 are not taxed. New employers become monthly depositors until a lookback period is established. Annual payers: Employers can pay FICA/FIT annually if they:

1) Are new employers who expect to pay wages of $4,000 or less this year, OR

2) Owe $1,000 or less in employment taxes per year, AND have not been late with any deposits for 2 years Instead of filing Form 941, annual payers use Form 944 (Employer’s Annual Federal Tax Return) If a firm has been eligible for Form 944, and exceeds the $1,000 threshold during the year, they can still file Form 944, but must start filing Form 941 at the beginning of the next year Deposits must be made electronically if total deposits exceed $200,000 for either of 2 previous years; for ER’s required to use EFTPS:10% penalty on every tax deposit that is not made through EFTPS Paper-based deposits for FICA/FIT are made on Federal Tax Deposit Coupons, Form 8109-B; can be made either at a Treasury Tax and Loan institution (certain banks qualify for this designation) or by mail

In my opinion ,

1. Deposit Rules Are Very Well Defined And Drafted To Ensure Loss Of Revenue From Taxes To The Government

2. And Also To Curb The Tax Evasion And To Have Control Over Unpaid Liability

3. And Also To Ensure No Frauds Or Errors Get Committed And

4. No Chance For Escape

5. .Even Loss Of Interest On Accumulated Tax Liability Is Taken Into Account .

6. It Is Regression In Nature