If accumulated employment taxes during a quarter are less than $2,500, what is required?

When accumulated employment taxes during a quarter are less than $2,500, the employer is not required to make any tax deposits for that quarter. This is due to the fact that the IRS allows employers with lower tax liabilities to have more flexible deposit requirements.

In this situation, the relevant threshold is set at $2,500, meaning that if the taxes accumulated fall below this amount, the employer can forgo the traditional monthly or semi-weekly deposit schedule. Essentially, the employer can pay the tax with their quarterly tax return instead, simplifying the process for those with smaller payrolls.

This provision is designed to ease the administrative burden on small businesses that may not have enough tax liability to warrant frequent deposits. Therefore, if the accumulated taxes are under $2,500, the correct course of action is to not make any deposits, aligning with the IRS guidelines for smaller tax liabilities.