Your business total payroll tax liability for the previous four quarters is $64,000. What is your deposit schedule for taxes?

Your business total payroll tax liability for the previous four quarters is $64,000. What is your deposit schedule for taxes?

• A. Semiweekly
• B. Next business day
• C. Monthly
• D. Yearly

Answer: (A)

The deposit schedule for payroll taxes is determined by the amount of total payroll tax liability a business has for the previous four quarters. In this scenario, with a liability of $64,000, the business falls into the semiweekly deposit schedule category. A semiweekly deposit schedule is typically required for businesses that have an average tax liability of $50,000 or more during the previous four quarters. Since this business's total payroll tax liability exceeds that threshold, it must follow the semiweekly deposit schedule, which means deposits must be made on specific days, depending on when the payroll is processed. The monthly deposit schedule is for businesses with a liability of less than $50,000, while a yearly schedule is for the smallest businesses, which typically have very low payroll liabilities. The next business day option is not applicable here, as it is typically used for businesses that have an immediate tax obligation or for certain penalties, but does not replace the structured schedules based on tax liability. Therefore, the correct deposit schedule is the semiweekly one.

The deposit schedule for payroll taxes is determined by the amount of total payroll tax liability a business has for the previous four quarters. In this scenario, with a liability of $64,000, the business falls into the semiweekly deposit schedule category.

A semiweekly deposit schedule is typically required for businesses that have an average tax liability of $50,000 or more during the previous four quarters. Since this business's total payroll tax liability exceeds that threshold, it must follow the semiweekly deposit schedule, which means deposits must be made on specific days, depending on when the payroll is processed.

The monthly deposit schedule is for businesses with a liability of less than $50,000, while a yearly schedule is for the smallest businesses, which typically have very low payroll liabilities. The next business day option is not applicable here, as it is typically used for businesses that have an immediate tax obligation or for certain penalties, but does not replace the structured schedules based on tax liability. Therefore, the correct deposit schedule is the semiweekly one.