Why You May Receive IRS Notice CP136 About Your Payroll Tax Deposit Requirements
Each year, typically in mid-November, the IRS sends out Notice CP136 to let employers know what their payroll tax deposit schedule will be for the upcoming year. If you receive this notice, it doesn’t mean something is wrong, it is an informational letter to help you stay compliant with payroll tax rules.
What the Notice is Telling You
It is not a bill! The CP136 notice explains how often you must deposit federal payroll taxes (the taxes reported on Form 941 or 943) during the next calendar year. The IRS classifies each employer as either a monthly depositor or semi-weekly depositor. This schedule determines when your federal payroll tax payments must be made.
How the IRS Decides Your Deposit Frequency
The IRS reviews your payroll tax filings from the lookback period, which includes the third and fourth quarter of the prior year plus the first and second quarter of the current year. Based on the total taxes you reported, if your lookback liability was:
- $50,000 or less, you will be a monthly depositor.
- More than $50,000, you will be a semi-weekly depositor.
This deposit schedule applies for the upcoming calendar year.
Why This Matters
Following the correct deposit schedule is important because the IRS charges penalties if payroll taxes are deposited late.
What You Should Do
When you receive a CP136 notice, please share it with our Tax Department at taxdepartment@checkwriters.com so we can confirm the deposit schedule is accurate in our system for the upcoming year.
Sample CP136 Notices
Below are two samples of Notice CP136.
