The Pear Corporation pays its employees every 2 weeks. During the look-back period, in each pay period the total withholding and FICA tax (employees' and employer's share) amounted to $750. How often must the Pear Corporation deposit payroll taxes?

Question

Quizplus · Accepted Answer

The IRS requires that if the total payroll tax liability is less than $2,500 in a quarter, the employer can deposit monthly. Since $750 every 2 weeks amounts to $1,500 per month, Pear Corporation must deposit monthly.

The Pear Corporation Pays Its Employees Every 2 Weeks