What is the consequence if a monthly depositor fails to deposit taxes by the required deadline?

When a monthly depositor fails to deposit taxes by the required deadline, the correct consequence is that a penalty is incurred for late deposit. This is an essential aspect of the compliance system for payroll taxes, including Social Security taxes. The government imposes penalties to encourage timely payments and ensure that funds are available for social insurance programs.

The penalty structure generally includes a percentage of the unpaid tax amount for each month the deposit is late, with a minimum charge for failure to deposit. This serves as a deterrent against late payments and helps maintain the integrity of the tax system. Prompt payment of payroll taxes is vital for funding Social Security and other government programs, so the consequences for failing to meet deposit deadlines are intentionally designed to enforce compliance.