October Payroll Deposit: What US Small Businesses Must Know

For US small businesses, managing payroll tax deposits accurately and on time is a critical responsibility. October payroll deposits are no exception. Understanding how to calculate your payroll tax liability, determine the correct deposit schedule, and submit payments properly ensures compliance with IRS regulations and helps you avoid penalties and interest.

This guide breaks down the October 2025 payroll deposit process, offers tips to avoid mistakes, and explains how services like Counto can help small businesses stay on track.

1. Understanding October Payroll Tax Liability

1.1 What Is Payroll Tax?

Payroll tax includes the federal taxes employers withhold from employee wages and the employer’s portion of Social Security and Medicare taxes. For US small businesses, accurate payroll tax calculations are required for both compliance and proper reporting.

Payroll taxes typically include:

• Social Security Tax: 6.2% of wages up to the wage base limit ($160,200 for 2025).

• Medicare Tax: 1.45% on all wages; an additional 0.9% on wages exceeding $200,000.

• Federal Income Tax Withholding: Based on employee W-4 forms and IRS withholding tables.

1.2 Step-by-Step Calculation for October

To calculate October payroll tax liability:

• Calculate total wages paid to employees during October.
• Compute Social Security tax: 6.2% of wages up to the wage base.
• Compute Medicare tax: 1.45% of wages, plus 0.9% for high earners.
• Determine federal income tax withheld using employee W-4 information.
• Sum all taxes to determine the total payroll tax liability for October.

2. Making Payroll Tax Deposits

2.1 Deposit Methods

All payroll tax deposits must be made electronically through EFTPS (Electronic Federal Tax Payment System). Small businesses can also use payroll service providers or tax professionals to make deposits on their behalf.

2.2 Deposit Deadlines

• Monthly Depositors: October payroll tax deposits are due November 17, 2025.

• Semiweekly Depositors: Deposit deadlines vary based on payroll dates; early-week payrolls are due the following Wednesday, and mid-week payrolls are due the following Friday.

It’s important to confirm your deposit schedule with the IRS to avoid late payments.

2.3 Common Mistakes to Avoid

• Missing the November 17 deposit deadline.

• Underpaying or miscalculating the deposit amount.

• Using incorrect payment methods instead of EFTPS.

• Confusing monthly vs. semiweekly deposit schedules.

• Not including the additional Medicare surtax for high earners.

✅ Don’t risk costly payroll penalties. Let our experts manage your payroll compliance end-to-end. Learn about our service here.

3. Penalties for Late or Incorrect Deposits

Late or inaccurate deposits can result in substantial penalties and interest:

• Initial Penalty: 2% of unpaid tax if late by 1-5 days.

• Escalating Penalties: Up to 15% if overdue beyond 10 days.

• Interest Accrual: Interest continues to accrue until full payment is made.

• Repeated Late Payments: May trigger IRS audits or enforcement actions.

Adhering to deadlines and double-checking calculations is essential for maintaining compliance.

4. Tips for Staying Compliant

• Use Payroll Software or Accounting Services: Automate calculations and deposits to minimize human error.
• Set Calendar Alerts: Schedule reminders before deposit deadlines.
• Maintain Accurate Records: Keep payroll reports, W-4 forms, and deposit confirmations.
• Double-Check Deposit Schedules: Ensure you are following monthly or semiweekly requirements.
• Review High Earner Wages: Confirm proper additional Medicare surtax calculation.
• Consider Professional Assistance: Hiring a CPA or accounting service can ensure compliance and save time.

5. How Counto Can Help US Small Businesses

Counto Accounting Services specializes in assisting US small businesses with payroll management, tax calculations, and timely deposits. With Counto:

• Payroll calculations for Social Security, Medicare, and income tax are automated and accurate.

• Deposits can be scheduled to ensure deadlines are never missed.

• Compliance with IRS rules is maintained, reducing the risk of penalties.

• Businesses gain peace of mind while focusing on growth instead of paperwork.

Counto’s tools and expert guidance make managing monthly and semiweekly payroll deposits simple and stress-free for small business owners.

Summary

For US small businesses, timely and accurate October payroll deposits are essential to remain compliant with federal tax requirements. Employers must calculate Social Security, Medicare, and federal income taxes correctly, choose the proper deposit schedule, and submit payments via EFTPS. Avoiding common mistakes and adhering to deadlines like November 17, 2025, helps prevent penalties and interest. Using tools like Counto Accounting Services simplifies payroll processes, ensures compliance, and allows business owners to focus on growing their business rather than navigating complex payroll rules.

Expert Payroll Services, Zero Hassle

Running payroll shouldn’t keep you up at night. Our in-house payroll team handles all the complexities—from withholding calculations to tax deposits. We ensure compliance, manage deadlines, and keep your books updated automatically.

Get comprehensive payroll support without the need for multiple providers. Your dedicated Customer Success Manager is just a message away for any questions.

Ready to get started? Chat with us now, email [email protected], or use our contact form.

Here are some articles you might find helpful:

Connecticut vape excise tax

Colorado vape tax guide

California vape tax essentials

Non-nicotine e-liquid business taxes

Open vs. closed vape tax guide