Employers with an accumulated 941 liability of less than what amount during the Lookback period are classified as monthly depositors for the next calendar year?

Employers are classified as monthly depositors for the next calendar year if their accumulated Form 941 liability during the Lookback period is less than $50,000. This classification is important because it determines the frequency with which an employer must deposit federal payroll taxes. Monthly depositors are required to make their deposits once a month, which provides a more manageable cash flow for smaller businesses with lower payroll liabilities. By knowing that the threshold is set at $50,000, employers can accurately assess their deposit schedule and ensure compliance with federal regulations. This classification helps the IRS manage cash flow from payroll taxes more effectively, while also accommodating employers based on the scale of their payroll obligations.