Annually during the month of November, the Department runs a payment/deposit frequency change program for all active employer withholding tax accounts. The payment/deposit frequency for the next calendar year may or may not be changed based upon the amount of withheld income tax reported to the Department.
For all active accounts, the payment/deposit frequency for the next calendar year is determined by the quarterly average amount of reported personal income tax withheld during the last two quarters of the previous calendar tax year and the first two quarters of the current calendar tax year.
Employer Withholding Reports and Remittances-An employer that can reasonably anticipate that its employer withholding will be $20,000 or more in a calendar year will be required to report and remit the tax on a semi-weekly schedule. This change requires the largest employers to submit withheld taxes to the department on a schedule similar to the one used by the IRS.
If the quarterly average amount is $1000.00 or greater, the account will be required to make payments/deposits on a semi-monthly basis in the upcoming tax year.
If the quarterly average amount is less than $1000.00, but greater than $299.99, the account will be required to make payments/deposits on a monthly basis in the upcoming tax year.
If the quarterly average amount is less than $300.00, the account will be required to make payments/deposits on a quarterly basis in the upcoming tax year.
Please watch your mail for 2021 Deposit Frequency Change notifications. If your deposit frequency is changing, the notice is sent only to employers and should be forwarded to PayDay upon receipt so we can update our system.