Effective January 1, 2019, and in order to simplify the rules for the deposit of withholdings of salaries as well as comply with the recent amendment to the Code while staying aligned with the Federal Government, we summarize these new rules.
Monthly Depositor
Monthly Depositors are those new employers and those whose added amount for retained and informed taxes on the Employer’s Quarterly Income Tax Withholding Return for the period covered in the quarters comprised from July 1 of the year before the last and June 30 of last year (Base Period) is of $50,000. Retained taxes must be deposited no later than the fifteenth (15th) day of the month following the withholding.
Biweekly Depositors
Employers, whose added amount for retained and informed taxes on the Employer’s Quarterly Income Tax Withholding Return corresponding to the Base Period is more than $50,000, are considered Biweekly Depositors. The withholdings must be made as follow:
|
Payment Day |
Deposit Day |
| Wednesday, Thursday, or Friday | No later than the following Wednesday |
| Saturday, Sunday, Monday, or Tuesday | No later than the following Friday |
Exceptions to the Rules for Monthly and Biweekly Depositors
- Employers whose withholdings for a quarter are less than $2,500 can send the withholding along with the Quarterly Tax Return.
- Employers whose withholdings for any day within a period are more than $100,000 must deposit the withholdings no later than the closing hour of the following labor day.
The Department yearly determines whether an employer is either a Monthly or Biweekly Depositor based on the added amount of withholdings for the twelve-month period of the year that ends on June 30. However, a Monthly Depositor ceases to be considered as such starting on the first day on which he accrues $100,000 or more in withholdings.
Any employer, taxpayer, or withholding agent that fails to comply with the deposit rules for withholdings on salaries will be subject to the penalties stated in the Code.
