If payday falls on Wednesday, Thursday, or Friday for semi-weekly depositors, by when must federal payroll taxes be deposited?

The correct answer is that federal payroll taxes for semi-weekly depositors must be deposited by Wednesday if payday falls on Wednesday, Thursday, or Friday. This is based on the IRS guidelines governing payroll tax deposits.

When a business operates on a semi-weekly deposit schedule, the relevant tax deposit dates are determined based on the day of the week that paydays occur. If the payday occurs on a Wednesday, Thursday, or Friday, the employer is required to make those payroll tax deposits by the following Wednesday. This ensures that the federal government receives the necessary funding in a timely manner and is fundamental for compliance with federal tax regulations.

Understanding this timeline is crucial for contractors and businesses to manage their payroll processes effectively and avoid potential penalties for late tax deposits. Compliance with these specific deadlines contributes to maintaining good standing with tax authorities.