Be on the lookout for IRS Payroll Tax Deposit frequency notices

Each year, during November and December, the IRS sends out FTD Federal Tax Deposit Frequency notices that inform you about what schedule that your payroll taxes must be paid.

Your deposit schedule for a calendar year is determined from the total taxes reported on your Forms 941 in a four-quarter lookback period. The lookback period begins July 1 and ends June 30. If you reported $50,000 or less of Form 941 taxes for the lookback period, you are a monthly schedule depositor; if you reported more than $50,000, you are a semiweekly schedule depositor.

The lookback period for a 2016 Form 941 filer who filed Form 944 in either 2014 or 2015 is calendar year 2014.

Form 941 Lookback period for Year 2016 = 2014 Q3 + 2014 Q4 + 2015 Q1 + 2015 Q2