What is a federal deposit schedule?

A federal deposit schedule, also known as a Federal Tax Deposit Schedule, is like a timetable set up by the IRS to help businesses pay their federal taxes. These taxes include things like income tax, Social Security tax, and Medicare tax taken from employees' paychecks, as well as the employer's share of Social Security and Medicare taxes.

The schedule you follow depends on your business's size and how much you owe in taxes. There are two main schedules:

1. Monthly Schedule: If you don't owe a lot in federal taxes, you usually make payments once a month, due by the 15th of the following month.

2. Semi-Weekly Schedule: If your tax bill is bigger, you might need to pay more often. The IRS gives specific dates for these payments based on when you pay your employees.

The IRS usually tells you which schedule you should follow when you get your Employer Identification Number (EIN) or in other messages about taxes. It's really important to stick to this schedule, so you don't get into trouble with penalties. You can also make these payments electronically, which is a safer and more efficient way to do it.