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Denver Business Tax Preparation: Monthly vs. Semi-Weekly Depositor

August 2, 2018

When operating a business, there are a number of factors to consider and one of the most important is a handling of the finances. Whether you are operating a multi-million dollar company or opening a specialty boutique in a local town, ensuring the operating costs aren’t exceeding the income and making sure the entity is stable enough to sustain producing a profit are all critical factors. If not given appropriate consideration, each has the potential to sink any new opportunity quicker than almost anything else associated with the operations of an organization. However, once any money begins to be made there is another factor to consider which is due their share of the wealth - the Internal Revenue Service (IRS).

Operating as the nation’s tax collection agency and often in the interest of the federal government, the IRS has a litany of regulations and applications which can make a highly trained professional tax attorney second guess themselves, let alone a small town, small company business owner. For these reasons alone, seeking professional assistance with any monetarily related issues, especially those involving the IRS, is recommended.

One of the most prevalent factors to determine when starting the business is whether you will be required to contribute federal income tax withholdings and both employee and employer social security and Medicare taxes monthly or semi-weekly.

Monthly Depositor

All new businesses are considered to be monthly depositors until it is determined they meet the requirements to move into a semi-weekly deposit schedule. Monthly deposits must be made by the 15th of the following month for the due period. For example, all submissions necessary for the month of July must be submitted to the IRS by August 15, August by September 15, September by October 15, continuing annually.

Semi-Weekly Depositor

For those businesses which have reported in excess of $50,000 during their lookback period, a semi-weekly deposit is required. The employment tax due date is reflected based on when the entity determines that pay day is scheduled. Pay days of Wednesday, Thursday, and Friday are due prior the following Wednesday and all other days are due before Friday.

A special $100,000 next-day deposit rule applies should a business incur such a tax amount due and will push any new company immediately to a semi-weekly for the remainder of the year in which the special submission occurs.
If you need assistance in deciding which method of tax submission should be utilized for your business then the accounting experts at Bloch, Rothman, and Associates will be pleased to assist you. Our associates can help ensure your tax requirements are met appropriately and in a timely manner. Known for also providing payroll assistance, they can help with a variety of accounting, bookkeeping and essentially any aspect on either the individual or business level. Whether you need an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in potentially a variety of other various services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.