b'MIDWESTM I D W E S TROOFING CONTRACTORS ASSOCIATIONR O O F E R1000 Power &Light Bldg.,KansasCity, Missouri64105 July,1975 SMALLEMPLOYEREMPLOYMENTTAXDEPOSITS TheInternalRevenueServicehasjustpublishedproposedregulations designedtohelpsmallemployersbyeasingFederaldepositrequirements forincomeandSocialSecuritytaxesonemployeewages. Presentregulationswithrespecttodepositofincometaxwithheld andFICAtaxesprovidethat: 1.Employerswithlessthan$200liability attheendofa calendarquarterneedmakenodeposit. 2.Employerswithover$200liability percalendarquarter butlessthan$200inanycalendarmonthmustmakeadepositbythe15thdayofthemonthfollowingthemonth in whichcumulativeliabilityis$200or more.Ifthe cumulativeliabilitydoesnotexceed$200untilthethird monthofthequarter,thetotalliability mustbedeposited bythelastdayofthemonthfollowingthecloseofthe quarter. 3.Employerswithover$200butunder$2,000liabilityper monthmust,foreachofthefirsttwocalendarmonthsin thequarter,makedepositsonorbeforethe15thdayof thesucceedingmonthandforthelastmonthinthequarter, makeadepositbythelastdayofthemonthfollowingthe closeofthequarter. 4.Employerswith$2,000ormoreliabilitypermonthmustmake quarter-monthlydeposits.If onthe7th,15th,22nd,or _ __las__t__day0the eaJ.-en-ctarmon"t:h ,cumulativeliatriti-tyis _$2,000or more,adepositisrequiredwithinthreebanking daysfollowingthecloseofsuchquarter-monthlyperiod. Employersinthiscategorywillbedeemedtohavemetthe depositrequirementsif atleast90%ofactualtaxliability foradepositperiodisdeposited. Undertheproposedregulations,employerswhoseaggregateamountof SocialSecuritypaymentsandincometaxeswithheldislessthan$25,000 inthecalendarquarterprecedingthecurrentquarterwouldonlyberequiredtodepositemploymenttaxeswithin7calendardaysafteranyday duringthecurreptquarteronwhichtheamountofundepositedtaxeshas accumulatedto$2,000ormore.Thus,theemployerwouldnotberequired tomakequarter-monthlydepositsbutrathercouldwaituntilhisundepositedtaxliability accumulatesto$2,000.Employerswhoseemployment taxesduringtheprecedingcalendarquarter were$25,000ormorewould continuetoremainsubjecttoquarter-monthlydepositrequirements;'