Employers with an accumulated 941 liability of more than what amount during the Lookback period are classified as semi-weekly depositors for the next calendar year?

Employers are classified as semi-weekly depositors for the next calendar year if their accumulated 941 liability exceeds $50,000 during the Lookback period, which is typically the 12-month period that ends on June 30 of the prior year. This classification affects how frequently they must deposit payroll taxes withheld from employees, with semi-weekly depositors required to make deposits more frequently than monthly depositors.

The $50,000 threshold is important because it helps determine the deposit schedule that minimizes penalties and interest for late payments. If an employer’s tax liability is beneath this amount, they would generally be categorized as monthly depositors, which offers a less frequent requirement for tax payments. This framework helps ensure that larger employers, who have more significant tax liabilities, contribute timely and more regularly to federal tax revenues.