After a jam-packed April, you can breathe a sigh of relief—tax season is (mostly) over! Now onto May. Here are some important tax, payroll, and HR compliance deadlines to take note of this month.
Federal holidays
May 29, 2023
Memorial Day
Memorial Day is a bank holiday, so you can close your business and take the day off.
Tax and payroll compliance deadlines
Payroll tax deposits (for semi-weekly depositors)
The Internal Revenue Service (IRS) requires employers who file Forms 940 and 941 to deposit payroll taxes at different frequencies throughout the year.
If you report more than $50,000 in payroll taxes during the lookback period of July 1, 2021 to June 30, 2022, you’re considered a semi-weekly depositor and must follow the 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 |
However, if you accumulate $100,000 or more of tax liability in a single day, the IRS says you must deposit the amount by the following business day, regardless of whether you normally deposit on a semi-weekly or monthly basis (more on monthly deposits below).
To learn more about federal payroll tax deposits, read Publication 15.
Keep in mind that some state and local governments that collect payroll taxes will also expect their own deposits, and those deadlines may be different from the federal ones. For more information, contact your state and local tax agencies directly.
May 1, 2023
Form 730 filing deadline for March wagers
You have to file Form 730, the monthly tax return for wagers, if you meet the following criteria and accepted wagers during March 2023:
- are in the business of accepting wagers
- conduct a wagering pool or lottery
- are required to be registered and received wagers for or on behalf of another person, but did not report that person’s name and address
Learn more about Form 730 here.
FUTA quarterly tax payment due
The Federal Unemployment Tax Act (FUTA) says that you’re subject to FUTA tax on the wages you paid employees who aren’t household or agricultural employees if:
- You paid wages of $1,500 or more to employees in any calendar quarter during 2021 or 2022, or
- You had one or more employees for at least some part of a day in any 20 or more different weeks in 2021 or 20 or more different weeks in 2022. Count all full-time, part-time, and temporary employees.
If the above applies to you, you have to file Form 940 by January 31. However, you also have to deposit your FUTA tax before you file your return. If your FUTA tax liability is more than $500 for the calendar year, you must deposit at least one quarterly payment. If your FUTA tax liability is $500 or less in a quarter, you can carry it forward to the next quarter.
That means if your FUTA tax liability through March is more than $500, you need to make your first quarterly payment by May 1.
If you owe $500 or more, you must make electronic fund transfers using the Electronic Federal Tax Payment System (EFTPS). Refer to Publication 966 for electronic federal tax payment system information, and Publication 15 for more information on deposit rules.
Form 720 filing deadline for the first quarter
You must file Form 720, the Quarterly Federal Excise Tax Return, if:
- You were liable for, or responsible for collecting, any of the federal excise taxes listed on Form 720, Parts I and II, for a prior quarter and you haven’t filed a final return; or
- You are liable for, or responsible for collecting, any of the federal excise taxes listed on Form 720, Parts I and II, for the current quarter.
You need to file your return for the first quarter of the year by April 30. However, since that day falls on a weekend, the deadline is May 1.
Form 2290 filing deadline for vehicles first used in March
If you’ve registered a heavy highway motor vehicle (with a taxable gross weight of 55,000 pounds or more) that was first used in March 2023, you have to file Form 2290 by May 1.
Per the IRS, you must file the form by the last day of the month following the month in which you first used the vehicle on a public highway. Since that day is April 30, a Sunday, you have until Monday, May 1.
To learn more about Form 2290, review the IRS’ instructions and information.
State income taxes due for Iowa and Virginia businesses
Most states that require income taxes have filing deadlines of April 18. However, Iowa and Virginia both have deadlines of May 1. Check out the respective state departments of revenue for Iowa and Virginia for more information.
May 2, 2023
State income taxes due for Delaware businesses
Delaware’s state income tax deadline for businesses is May 2. Check out Delaware’s state department of revenue for more information.
May 10, 2023
Employee tip reporting deadline for April 2023
Your employees are required to report to you any tips of $20 or more that they earned during the month of April 2023. You can learn more about tip withholding and reporting requirements here.
Form 941 extended filing deadline for people who made timely deposits
If you have at least one employee, you must file Form 941 to report any income taxes, Social Security taxes, or Medicare taxes withheld from your staff’s paychecks and pay their share of payroll taxes every quarter.
The first Form 941 for 2023 and the accompanying payroll tax payment were due on April 28. However, if you made the full deposit for the quarter on time, you automatically get additional time to file the form. Your Form 941 is due May 10 if you made the full quarterly deposit on time. You can e-file through the EFTPS.
Keep in mind that if your business is in one of the FEMA-designated disaster areas in California, Alabama, or Georgia, you have until October 16, 2023 to make these payments.
May 15, 2023
Payroll tax deposits for monthly depositors
If your company follows the monthly payroll tax deposit schedule (meaning that you reported less than $50,000 in payroll taxes during the lookback period), then your tax deposit for April payrolls is due on May 15.
State income taxes due for Louisiana businesses and some California businesses
Louisiana’s state income tax deadline for businesses is May 15. Check out Louisiana’s state department of revenue for more information. California has also extended its state tax filing deadline to May 15 for businesses located in disaster areas.
Form 8038 filing deadline
If your business issues tax-exempt private activity bonds, you have to file Form 8038 for bonds issued in the first quarter of 2023 by May 15. You need to file a separate form for each issue of the following tax-exempt private activity bonds issued after 1986:
- Exempt facility bonds
- Qualified mortgage bonds
- Qualified veterans’ mortgage bonds
- Qualified small issue bonds
- Qualified student loan bonds
- Qualified redevelopment bonds
- Qualified hospital bonds
- Qualified 501(c)(3) bonds
- Nongovernmental output property bonds
- All other tax-exempt private activity bonds
For more information on what constitutes a bond and which other forms you may need to file, see the IRS instructions here.
Nonprofit tax returns due
If you run a nonprofit organization, you’re required to submit an annual tax return to the IRS. This form reports your organization’s activities and finances for the year, and is available to the public to view. If you operate on a calendar year, you need to file your tax return for the 2022 tax year by submitting Form 990 by May 15.
For more information on how to fill out Form 990, along with 990-EZ, 990-PF, 990-N, 990-BL, 990-T 4720, and 8868, review the official instructions on the IRS website.
May 31, 2023
Form 730 filing deadline for April wagers
You have to file Form 730, the monthly tax return for wagers, if you meet the following criteria and accepted wagers during April 2023:
- are in the business of accepting wagers
- conduct a wagering pool or lottery
- are required to be registered and received wagers for or on behalf of another person, but did not report that person’s name and address
Learn more about Form 730 here.
Form 2290 filing deadline for vehicles first used in April
If you’ve registered a heavy highway motor vehicle (with a taxable gross weight of 55,000 pounds or more) that was first used in April 2023, you have to file Form 2290 by May 31.
Per the IRS, you must file the form by the last day of the month following the month in which you first used the vehicle on a public highway. To learn more about Form 2290, review the IRS’ instructions and information.
HR compliance deadlines
May 1, 2023
Annual funding notice due to plan participants
Sponsors of single and multi-employer direct benefit pension plans are required to send annual funding notices outlining the plan’s funding status to plan participants, beneficiaries, and labor organizations that represent their participants. You have to do this no later than 120 days after the end of the plan year.
This would typically make April 30 the deadline for these forms, but because the date falls on a Sunday this year, annual funding notices are due to plan participants by May 1 instead.
You can send the notice online through the Pension Benefit Guaranty Corporation (PBGC) e-Filing portal, via email, or by mail.
For more information, including how to set up and manage your e-Filing portal account, visit the PBGC webpage on multiemployer plan notices.
May 15, 2023
Quarterly plan statements due to plan participants
If you offer retirement plans to your employees, you’re required to send plan statements to participants with an account balance on a quarterly basis. You must send out these documents no later than 45 days after the end of the quarter, which means the first statements are due May 15.
Make sure to include the following information in your company’s plan statements:
- The total and vested account balance, as of the last day of the statement period
- The value of each investment in the account
- The dollar amount in fees that have been deducted from the account
- Any limitations or restrictions on the participant’s ability to direct an investment
- An explanation (in layman’s terms) of the importance of a well-balanced and diversified investment portfolio to the participant’s long-term financial security
It’s also a good idea to include a note directing the participant to the Department of Labor’s website for more information on personal investing and diversification.
