Summer’s in full swing, but don’t let your HR deadlines get in the way of your vacation time. Stay on top of your work with our calendar of benefits, payroll, and tax due dates for the month of July.
July 4, 2022: Independence Day
Since Independence Day is a federal holiday, banks will be closed on July 4. Take the opportunity to sign off and enjoy a summer day!
Tax and payroll compliance deadlines
Federal payroll tax deposits (for semi-weekly depositors)
The Internal Revenue Service (IRS) mandates that employers must deposit payroll taxes according to your schedule—but the schedule you follow depends on factors like your business tax returns and past filing history.
Start by calculating how much you withheld in federal income and FICA taxes (otherwise known as Medicare and Social Security taxes) between the lookback period, which is between July 1, 2020 and June 30, 2021 for this year.
Employers with a tax liability of over $50,000 during the lookback period follow the deposit schedule below:
|If payday for your employees is on…||Deposit employment taxes by…|
|Wednesday||The following Wednesday|
|Thursday||The following Wednesday|
|Friday||The following Wednesday|
|Saturday||The following Friday|
|Sunday||The following Friday|
|Monday||The following Friday|
|Tuesday||The following Friday|
If your tax liability doesn’t meet the $50,000 threshold, you’d follow the monthly payroll deposit schedule outlined below.
Regardless of your schedule, deposit your payments through the Electronic Federal Tax Payment System (EFTPS). Ensure these payments are made on time—or you may face penalties of up to 15%.
Review Publication 15 for more details about your payroll tax deposit schedule.
State and local payroll taxes
Unemployment insurance taxes
Unemployment insurance tax and returns for states are generally due at the end of the month following the end of the calendar quarter (i.e. July 31 for second quarter returns).
Check with the unemployment insurance tax collectors for your specific state(s) to confirm that unemployment taxes are due for the second quarter of 2022. Unemployment taxes are generally owed on all employees in all states in the US.
Income tax withholding
Most states also assess income taxes that most likely must be withheld from your employees’ paychecks and then paid to the state agencies at specific intervals, depending on the amount of tax you pay to the state annually. Many of these states have quarter returns that are due at the end of each calendar quarter to reconcile the payments made during the quarter.
The states without income tax are:
- New Hampshire
- South Carolina
If you have employees outside of the states listed above, chances are you owe payroll taxes to these state agencies.
Several states also impose local payroll taxes that are collected by local taxing authorities. You may owe local taxes and file quarterly tax returns this month if you have employees working in the following states:
- Indiana (collected by the state)
- Maryland (collected by the state)
- New Jersey
- West Virginia
For more information on unemployment insurance tax, state income tax, and local tax deadlines for your business, check with the appropriate tax authorities.
July 1, 2022
Start of Q3 for the calendar year
If your company follows a calendar year cycle, then the third quarter of the year begins on July 1, 2022.
July 11, 2022
Form 4070 due
Employees who received more than $20 in tip income in June must use Form 4070 to report the amount to their employer by July 11, 2022.
July 15, 2022
Federal payroll tax deposits (for monthly depositors)
Monthly depositors are employers who either:
- Owed less than $50,000 in payroll taxes during the lookback period
- Are a new employer with no employees during the lookback period
If you meet one of the above qualifications, your payroll tax deposit for June is due on July 15, 2022. Use the EFTPS to make your payment.
July 31, 2022
Form 720 due
Companies that sell goods or services subject to excise taxes may be required to submit Form 720, along with any required payments, to the IRS on a quarterly basis. These taxes are imposed on goods and services such as gasoline, indoor tanning services, air transportation, tires, vaccines, and alcohol. Check out Form 720 for the full list. If your company manufactures or sells any of the items listed on the form, your second quarterly payment must be submitted by mail or electronically by July 31. 2022.
You’ll need to work with a tax professional in the IRS e-filing program if you want to file your excise taxes electronically. You will also be able to submit your tax payment through the EFTPS—but do it at least one day before the deadline to ensure timely receipt.
If you opt for the paper route, send the completed document, payment for any taxes owed, and the Form 720-V payment voucher to this address:
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0009
Keep a copy of your completed tax form and transaction records for at least four years after submission.
Form 941 due
Employers use Form 941 to pay their payroll taxes and report the total amount of federal income, Social Security, and Medicare taxes withheld from their employees during the previous quarter.
If your company has employees, you’ll need to submit this form on a quarterly basis, even if you don’t have any employees for part of the year. Exceptions to this rule include:
- Seasonal employers without employees for one quarter or more
- Companies with household employees
- Companies with agricultural employees
If your company has at least one employee and doesn’t meet any of the qualifications above, file Form 941 with the IRS by July 31, 2022.
To submit your return and payment by mail, check the tax form’s instructions for the correct mailing address. Those who plan to e-file can do so with their tax professional or tax preparation software, and submit their payment through the EFTPS.
HR compliance deadlines
July 15, 2022
Second quarterly contribution for defined benefit pension plans due
Employers that don’t meet the funding minimum requirements for their defined benefit pension plans by the end of the plan year must make their annual contributions for the following year in quarterly installments.
For these businesses, the deadline for their second quarterly payment lands on July 15, 2022. Make all electronic payments and mail out all checks by this date to avoid late penalties.
July 29, 2022
Summary of Material Modification due to plan participants
If your company made any changes to your retirement plan in 2021, you must furnish a Summary of Material Modification (SMM) to all plan participants and beneficiaries by July 29, 2022 (210 days after the end of the plan year that the changes were made).
However, if the change was already published in a revised summary plan description and distributed to participants, you are not required to send an SMM notice.
July 31, 2022
Form 5500 due (for calendar year plans)
According to the Employee Retirement Income Security Act (ERISA), certain employers must file an annual report with the Department of Labor (DOL) that provides information about certain sponsored health and welfare plans from the company. These plans include:
- Plans covering 100 or more participants on the first day of the ERISA plan year
- Plans sponsored by a Multiple Employer Welfare Arrangement (MEWA)
- Plans funded through a trust or other means
The report, called Form 5500, requests information on a company’s employee benefit plans to ensure that they remain compliant with government regulations. Employers that are required to submit this annual return for the 2021 plan year must do so electronically (either with EFAST2-approved software or through IFILE) by July 31, 2022.
For more information on the form and its filing instructions, visit the official DOL webpage.
Form 5558 due (for calendar year plans)
Employers who need additional time to file Form 5500 may submit Form 5558 by July 31, 2022 to extend the deadline to October 15. However, any taxes that are due must still be paid by July 31st.
Each company has its own set of benefits notices and federal regulations to keep track of. Now’s a good time to review your benefits notice requirements and issue any documents as needed, so you’re not caught off guard by (and penalized for) any essential deadlines.