Your schedule is assigned, not chosen
Deposit frequency is determined by your tax liability during a lookback period. Businesses are generally either monthly or semi-weekly depositors, and the classification can change between years without anyone noticing.
The penalty escalates by lateness
Penalties step up the longer a deposit is outstanding, and rise again once a notice has been issued. Because the steps are tied to days, a deposit a few days late and one a few weeks late are materially different amounts.
The large-liability rule
Accumulating a liability above a threshold triggers an accelerated deposit requirement regardless of your normal schedule. Businesses that run an unusually large payroll, often a bonus run, can breach this without realising the normal timetable no longer applies.
Trust fund liability is personal
Withheld employee taxes are trust funds. Responsible individuals can be held personally liable for unpaid amounts, and that liability survives the business entity. This is the part that makes payroll tax different from other payables.
Practical safeguards
- Confirm your deposit schedule each year rather than assuming it carried over.
- Reconcile payroll liabilities to filings quarterly, not annually.
- Check bonus runs against the accelerated threshold before processing.
TallyWise provides this as part of our payroll services. Book a call to talk through your situation.
