Employers with a deposit liability of $100,000 or more must make their deposits within how many business days?

Employers with a deposit liability of $100,000 or more are required to make their payroll tax deposits within one business day. This requirement is part of the federal tax deposit regulations outlined by the IRS, which aims to ensure that large payroll tax deposits are remitted in a timely manner to maintain compliance and avoid penalties.

The rationale behind this stringent timeline is to ensure that significant tax liabilities are handled promptly, helping to prevent accumulation of unpaid taxes that could result in interest and penalties. By mandating a one-business-day timeframe for these larger deposits, the IRS promotes efficient cash flow management for both the employers and the government.

Understanding this timeline is crucial for payroll managers, as timing can significantly impact compliance and financial planning within an organization.