A CP136 is not a bill. It is an informational notice for employers that says your Form 941 deposit requirements for next year may differ from last year's. It matters because depositing on the wrong schedule is a common reason employers end up with a failure-to-deposit penalty even when the tax itself was paid.
What the notice says
The IRS looks at the tax shown on your original Forms 941 for the lookback period and tells you which schedule it expects you to follow. The notice's figures reflect original returns only, so do not include amended returns when you compare. The reference for the rules is Publication 15 (Circular E), Form 941 instructions and Notice 931.
| Schedule | Lookback-period tax | When deposits are due |
|---|---|---|
| Monthly | $50,000 or less | By the 15th of the following month, for wages paid during a month |
| Semiweekly | More than $50,000 | Wages paid Saturday through Tuesday: the following Friday. Wages paid Wednesday through Friday: the following Wednesday |
Other thresholds the IRS highlights
- $2,500. Deposits must generally be made electronically unless your tax liability is under $2,500 for the quarter, or the prior period's tax was under $2,500 and you did not have a $100,000 liability due the next day. If your quarterly tax is under $2,500, you can pay with the voucher attached to Form 941.
- $100,000. If your accumulated liability reaches $100,000 in any month, you must deposit by the next business day. You then become a semiweekly depositor for the rest of the current year and the next year.
- Reporting. On Form 941, show only tax liabilities, not payments. Monthly depositors report on Part 2 of Form 941. Semiweekly depositors complete Schedule B (Form 941).
These are the figures the IRS publishes on its CP136 page; the rules are applied to a specific situation, so confirm them against the current Form 941 instructions and Publication 15 for your tax year.
What to do
- Compare the notice's tax amounts with your records. Check each of the four quarters in the lookback period.
- Determine your correct schedule. If the notice and your records differ, the IRS tells you to determine the correct deposit schedule yourself.
- Look for zero periods. A zero means the IRS has no record of a Form 941 for that quarter. File any missing return as soon as possible, and check whether a CP259 follows.
- Tell your payroll provider or software which schedule applies.
- Calendar the deposit due dates for the year. See our payroll deadlines calendar.
Penalties
The CP136 page does not describe penalty amounts. But depositing late, short or on the wrong schedule can lead to a failure-to-deposit penalty. See failure-to-deposit penalty and payroll tax penalties and relief. You can authorize a representative on Form 2848 or call the number at the top of your notice with questions.
Related notice: CP250A
A CP250A tells you that your annual federal employment tax filing requirement changed because your annual employment tax liability was more than $1,000, so you can no longer file Form 944 and must file Form 941 each quarter. The IRS says to contact it within 30 days of the notice date if you disagree. See Form 941.
Common mistakes
- Using last year's schedule without checking the new lookback.
- Including amended returns in the comparison.
- Forgetting the $100,000 next-day rule in a big payroll month.
- Missing a Form 941 for a quarter, which also affects the lookback.
When to involve a CPA
Payroll deposit rules are unforgiving, and mistakes carry penalties. A CPA can check the lookback period, confirm your schedule and review prior deposits. If you outsource payroll, we can help you verify the provider is following the right schedule. See federal payroll tax deposits.
How we can help
Our payroll services include deposit calendars and filing. If a CP136 leaves you unsure which schedule applies, we can review it with you. Contact us.
Frequently asked questions
Is a CP136 a bill?
No. It informs you of your deposit schedule. It does not show a balance.
What if I disagree with the lookback figures?
Compare with your original Forms 941 and decide the correct schedule yourself, as the IRS advises. Keep documentation.
What if a period shows zero tax?
The IRS has no record of that Form 941. File it as soon as possible.
How do I change from monthly to semiweekly?
The schedule follows the lookback figures and the $100,000 rule. You do not choose it freely.
Official sources
This page is a plain-language summary. The official source controls if there is any difference.
General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.