2024 Payroll Taxes & Form 941: How to File and Important Due Dates

Business owners, employers, and HR professionals across the United States know how unpleasant it can be to deposit and file payroll taxes. And newer businesses may be wondering, “What even are payroll taxes?”

Put simply, payroll taxes are incurred by an organization whenever it processes payroll to pay its employees. These funds are used for governmental programs, such as Medicare or unemployment aid. Unlike income tax, which is paid solely by the employee, unemployment taxes are either paid by the organization or by both the organization and the employee.

The following overview will walk through these different types of federal payroll taxes, when and how to pay them, how to file returns for them, and the upcoming payroll tax deadlines for 2024. Incorrect payroll tax reporting and filing are some of the most common payroll errors, so having a firm grasp on these basics can help avoid the consequences and alleviate the stress that comes with this subject.
 

What are Federal Payroll Taxes?

At the federal level, the main payroll taxes employers must pay are Social Security, Medicare, and Unemployment. However, employers also withhold and deposit federal income taxes for each of their employees, as well as file returns for those deposits every quarter or year.

Social Security and Medicare Taxes

Social Security and Medicare payroll taxes were created by the Federal insurance Contributions Act (FICA), which itself was originally a provision of the 1935 Social Security Act (SSA).

• The 2024 FICA rate is 15.3% of an employee’s paycheck, with half (7.65%) being paid by the employee and the other being paid by the employer when it matches the employee’s payment.
• 6.20% of each half (or 12.4% of the total 15.3%) goes to Social Security, while the remaining 1.45% of each half (or 2.9% of the total 15.3%) goes to Medicare.

• Social Security taxes have a wage base limit, which is the maximum wage subject to Social Security taxes for the year.
  • For 2023 the wage base limit was $160,200, so if an employee earned $170,000 in 2023, only $160,200 of that salary is eligible for social security taxes.
  • This wage base limit increased to $168,600 for 2024.

• Medicare taxes don’t have a wage base limit, but they do have an Additional Medicare Tax for wages above certain amounts.
  • Employees earning over $200,000 annually that file their tax returns as an individual owe an additional 0.9% in Medicare taxes on top of the 1.45% described above.
  • Married employees who file jointly while earning over $250,000 annually or file separately while earning over $125,000 annually are also eligible for this additional tax.

When are Payroll Taxes Due?

Payroll tax deposit due dates vary depending on which type of tax is being paid. Deposits for social security, Medicare, and income taxes may be made at the same time, but deposits for unemployment taxes use a different cadence.

Due Dates for Social Security, Medicare, and Income Tax Deposit

Note, if any of the following dates fall on a weekend or a federal holiday, the deposit may instead be made on the next business day.

• Deposit must be made on either a monthly or semiweekly schedule.
  • The IRS chooses which schedule an organization uses. This depends on how often the organization files its federal tax returns (quarterly or annually) and the amounts reported on said returns during a specific timeframe, also known as a lookback period.
  • The lookback period for a quarterly filing organization is July 1 from two years ago to June 30 of the prior year. For example, the lookback period for a quarterly filing organization in 2024 would be July 1, 2022, to June 30, 2023.
  • For annual filing organizations, the lookback period is the second preceding year to the current one. For example, the lookback period for an annually filing organization in 2024 would be the calendar year 2022. 
• Monthly deposit schedules require employers to deposit their taxes on the 15th day of the month following the month in which the employees were paid. For example:
  • If an organization pays its employees on April 30 for hours worked that month, that organization must deposit the taxes from that payroll on May 15.
  • If, however, an employer pays its employees on May 1 for hours worked in April, the organization must instead deposit those taxes on June 15.
• Semiweekly deposit schedules require organizations to deposit their federal taxes depending on the day of the week on which employees were paid.
  • If an organization pays its employees on a Wednesday, Thursday, or Friday, taxes must be deposited by the following Wednesday.
  • If an organization pays its employees on a Saturday, Sunday, Monday, or Tuesday, taxes must be deposited by the following Friday.

Due Dates for Unemployment Tax Deposit

Unemployment taxes are deposited quarterly, unless the total collected tax for a quarter is $500 or less, in which case an organization may wait to deposit the funds the following quarter. As with payroll tax deposits, if any of the following deadlines fall on a weekend or holiday, the deposit may instead be made on the next business day.

How to Deposit Payroll Taxes

Organizations need to first confirm (or apply for) their Federal Employer Identification Number (FEIN). With this in hand, the IRS requires payroll tax deposits be made in the form of an Electronic Fund Transfer (EFT)

EFTs can be made using the Electronic Federal Tax Payment System (EFTPS), which is a free service provided by the Department of Treasury.

How to File Payroll Tax Returns

Like the deposits themselves, the schedules for filing these returns vary based on the type of tax being reported.

Should I File Form 940, Form 944, or Form 941?

• Form 940 reports federal unemployment taxes and is filed on an annual basis, despite the fact that deposits for unemployment taxes are made on a quarterly basis. Organizations have until January 31 to submit this form, so the due date for reporting 2023 unemployment taxes, is January 31, 2024.

• Form 941 is used by organizations that wish to file their payroll and income tax returns quarterly. Form 941 is due by the final day of the month after a quarter ends:

• Form 944 is used by organizations to file their payroll and income tax returns annually as well. This is best suited for very small organizations whose annual payroll and income taxes are less than $1,000. The IRS will notify you if you're eligible to file a Form 944.

Electronic vs. Paper Filing

The IRS encourages organizations to file these forms electronically, but paper filings are allowed too.

Paper filings carry the added complication of where to send the return, which depends on which state the organization is located in and whether the return includes any payments. The instructions for each form linked above contain a list of the addresses for each scenario under “Where Do You File?”

Automatic Payroll Tax Filings

The right payroll software solution with tax filing services can alleviate time and stress by automating your filing. See how one payroll admin got her weekends back by turning to Paylocity to handle the payroll taxes.
 

2023 Payroll Year End Due Dates

Monthly deposits for payroll and income taxes are due on November 15 and December 15, 2023, but employers can use the remaining calendar year to get their information ready for the busy tax season in January 2024. This can include organizing their employees’ personnel information, such as Social Security Numbers (SSNs), mailing addresses, etc., and compiling any charitable donations or entertainment expenditures the organization made in 2023.

Check out our Year End Payroll Checklist for more information on everything your organization needs to prepare for year end.

Moreover, employers would be smart to obtain electronic or paper copies of the returns they'll need to file and confirm certain information with the government, such as the 2024 Social Security wage base limit and the organization’s FEIN and deposit schedule for payroll and income taxes.
 

2024 Payroll Tax Deposit and Form 941 Due Dates

This quick reference guide will help track the dates covered above for 2024. For more information and details on the semiweekly tax deposit dates, refer to the IRS’ online tax calendar.