A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Next-Day-Deposit Rule

Under this rule, once accrued payroll tax liability exceeds $100,000, a company must submit withheld federal taxes to the IRS on the following business day. Otherwise, an employer's tax-deposit schedule is typically monthly or semi-weekly, depending on the average amount of employment tax paid during a particular period. In general, employment tax liability is triggered on the date when compensation is paid to an employee.

See related FAQs on the application of the next-day-deposit rule to income withheld at stock option exercise and restricted stock/RSU vesting.

Return to list Register Now

Try the new myStockOptions.com Glossary App! Now available for Android and iOS.

Get it on Google Play
The content is provided as an educational resource.
myStockOptions.com shall not be liable for any errors or delays in the content, or any actions taken in reliance thereon.
Copyright © 2000-2023 myStockPlan.com, Inc. U.S. Patent 7,353,200.
Contact editors@mystockoptions.com for licensing information