When must employers report and pay FICA taxes?

The requirement for employers to report and pay FICA taxes is driven by the size of the employer's payroll and the overall tax liability. Employers with larger payrolls generally have to make payments semi-weekly, meaning they must deposit FICA taxes on wages paid on certain days of the week, specifically if their tax liability exceeds a certain threshold during a look-back period. For employers with smaller payrolls, the Federal Government allows for monthly deposits, making the process more manageable for those with lower tax liabilities. This tiered approach allows the system to be responsive to the varying sizes and capacities of different employers, ensuring both compliance and efficiency in managing social security contributions and Medicare taxes.

In contrast, weekly reporting based on payroll frequency is typically for payroll processing rather than specifically tied to FICA tax payments. Quarterly reporting aligns more closely with income taxes for reporting periods but is not applicable to the requirement for FICA taxes, which demand more frequent deposits based on real-time liabilities. Annual reporting does not meet the obligation for FICA taxes, as the payment must occur within the tax year after wages are paid to maintain compliance with IRS regulations.