How frequently a contractor must deposit withheld federal payroll taxes with the IRS is determined primarily by:
Explanation
26 CFR §31.6302-1 puts an employer on a monthly or semiweekly deposit schedule according to the total employment tax reported during a lookback period, so the bigger the payroll liability, the more often the deposits fall due. Licensing tells the IRS nothing about payroll. The trade performed and the county of the office affect other obligations — classification, local business tax — but not the federal deposit rhythm, which is keyed to dollars of liability alone.
Law Reference: 26 CFR §31.6302-1This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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