What must happen if an employer accumulates $100,000 or more in undeposited employment taxes?

If an employer accumulates $100,000 or more in undeposited employment taxes, those taxes must be deposited on the next banking day. This requirement is part of the IRS regulations that emphasize timely payment of employment taxes to ensure that funds are available for Social Security and Medicare programs. The urgency in the deposit requirement helps maintain the integrity of the nation's tax system and avoids potential penalties for late deposits.

With this threshold amount, the IRS puts in place stricter rules to manage how employers handle significant sums of tax liabilities, ensuring they do not risk incurring further penalties or interest that would arise from delays. Meeting this deposit obligation prevents complications and facilitates smooth operations both for the employer and the government. Other options do not align with the IRS rules regarding the timing of deposits for larger amounts.