For a nonagricultural employer with $125,000 in taxes accumulated, when must the taxes be deposited?

The correct option indicates that taxes must be deposited by the close of the next banking day. This aligns with federal regulations that require nonagricultural employers to deposit accumulated payroll taxes based on specific thresholds. When an employer accumulates $100,000 or more in payroll taxes at any point during the deposit period, they become a "next-day deposit" schedule taxpayer.

In this scenario, with the nonagricultural employer having $125,000 in taxes accumulated, they fall into this category. Therefore, they are required to deposit these taxes by the close of the next banking day following the accumulation of that amount. This is designed to ensure timely compliance with tax obligations and to minimize the risk of penalties.

The other options do not reflect this immediate requirement for depositing taxes based on the accumulated amount. For example, delaying the deposit until the following Tuesday or carrying over to September would be contrary to the urgency established by tax regulations when a minimum threshold is met, which in this case is $100,000. By adhering to the next-day deposit rule, the employer fulfills their tax responsibilities promptly.