How often you are required to make payments for a particular payroll tax.
The tax agency assigns the deposit frequency according to a deposit schedule. For example, for 941 payments, the IRS assigns new employers a Monthly deposit frequency for the first year of business. Monthly depositors should deposit payroll taxes accrued in a month by the 15th of the next month. After the first year, the IRS uses a four-quarter lookback period to determine the required deposit frequency for an employer.
Because penalties and interest incur when payroll tax payments are paid late, it's important for customers to select the correct deposit frequency for a payroll tax when setting up their scheduled tax payments. QuickBooks provides extra assistance during payroll setup when determining the deposit frequency for a payment.