An employer who has a history of collecting less than $50,000 during a quarter must deposit the tax withholdings by when?

The correct timeframe for an employer who has a history of collecting less than $50,000 during a quarter is to make tax withholding deposits by the 15th of the following month. This guideline is established under the IRS rules regarding federal tax deposits and is applicable to employers classified as monthly depositors.

When an employer's liabilities are consistently low—specifically less than $50,000 in a quarter—they are classified in the monthly deposit schedule rather than a more frequent deposit requirement, like semi-weekly. This means they will accumulate the tax withheld from their employees over the month and are required to make their payment by the 15th of the following month. By adhering to this schedule, employers remain compliant with federal tax requirements and avoid potential penalties associated with late payments.

Other options, like depositing at the end of the quarter or on the last day of the month, do not align with the IRS deposit regulations for employers in this category, as these would either miss the required deadlines or not follow the prescribed schedules.