Which tax is required to be deposited quarterly unless the amount owed is less than $500?

The Federal Unemployment Tax Act (FUTA) tax is the correct answer because it specifically requires employers to pay this tax on a quarterly basis if the amount owed is $500 or more. If the cumulative FUTA tax liability for the year is less than $500, no quarterly deposits are required, and the employer can pay the FUTA tax with their annual tax return.

Understanding the requirement for quarterly deposits underscores the nature of FUTA as a tax primarily assessed to fund unemployment compensation for workers who have lost their jobs. It is essential for employers to stay compliant with these tax deposit requirements to avoid penalties.

In contrast, Social Security Tax, Federal Income Tax, and Medicare Tax have different rules regarding deposits. Social Security and Medicare taxes are often deposited based on different thresholds or based on payroll frequency rather than a fixed quarterly requirement of $500. Federal Income Tax withholding can also vary widely among employees and does not have a set threshold for deposits like FUTA does. This specificity is what makes FUTA notable in this context.