Under the de minimis deposit safe harbor rule, employers that accumulate less than $2,500 in payroll taxes during the current calendar quarter can pay those taxes with their Form 941, rather than deposit them. Final regulations, which reiterate temporary regs, allow quarterly filers to use the safe harbor rule if their accumulated taxes for the current or preceding quarter are less than $2,500.
The regs also confirm that participation in the Form 944 program is voluntary. The regs apply to deposit periods beginning on or after Jan. 1, 2010. (76 F.R. 77672, 12-14-11)
Pick consecutive quarters
Expanding the de minimis safe harbor deposit rule should benefit employers with unexpected increases in their payroll deposits for a quarterly return period. However, to take full advantage of it, you’ll have to keep a closer eye on your quarterly taxes.
Example: AnyCompanyUSA’s payroll taxes for the first and second quarters of 2012 are...(register to read more)