No Deposit, Big Return

And that's good news from the IRS.
Magazine Contributor
1 min read

This story appears in the March 2001 issue of Entrepreneurs Start-Ups magazine. Subscribe »

In an effort to make life easier for small businesses, the IRS recently scrapped monthly employment tax deposit requirements for about 1 million small-business owners. Under the new rules, the IRS will allow businesses to make payments every three months if they have less than $2,500 in quarterly employment taxes. Previously, payments were permitted every three months only if businesses had less than $1,000 in quarterly employment taxes.

The IRS says the new rule is advantageous-it reduces the frequency of deposits, small businesses will encounter fewer mistakes and penalties, and quarterly payments will allow better cash flow. Small businesses that qualify under the new rule may pay their employment taxes when they file Form 941, "Employers Quarterly Federal Tax Return."


Joan Szabo is a writer in Great Falls, Virginia, who has reported on tax issues for more than 14 years.

More from Entrepreneur

Learn to be a better leader and develop successful marketing and branding strategies with Dr. Patti Fletcher's help.
Book Your Session

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.