If an employer's accumulated liability is less than $1000 for a quarter, when may the taxes be deposited?

When an employer's accumulated liability for payroll taxes is less than $1,000 for a quarter, they are permitted to deposit those taxes with their quarterly Form 941 return. This option aligns with the IRS guidelines that allow smaller employers to combine their tax liabilities and report them on a less frequent basis without needing to make more frequent deposits.

Choosing to deposit taxes with the quarterly 941 return provides an efficient method for managing payroll taxes, allowing employers to handle their reporting and tax responsibilities simultaneously. This approach can help streamline administrative processes and reduce the frequency of cash flow management associated with tax deposits.

Other options, such as depositing at the end of the fiscal year or immediately upon assessment, may not be permissible under IRS regulations for smaller employers with lower tax liabilities. While it might seem logical to wait until the end of the year or assess taxes immediately, the structured approach of quarterly deposits is specifically designed to accommodate the needs of businesses with minor tax obligations. Additionally, reporting taxes with the annual return would delay the payment process and is not designed for quarterly liabilities.