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IRS CP136 Notice Explained: Your Payroll Tax Deposit Schedule
By Andrew Nocera, Tax Preparer & Small-Business Finance Consultant, Enhance Finance LLC (serving all of Connecticut from Shelton). Updated November 2026.
If you run payroll, a CP136 tells you how often you must deposit federal payroll taxes next year. It isn't a bill. It's the IRS telling you whether you're a monthly or a semiweekly depositor, based on what you reported on Form 941.
IRSWe can help with this| What it is | Your Form 941 deposit schedule for next year (monthly or semiweekly). Not a bill. |
|---|---|
| Deadline | No reply needed. File any missing Form 941 "as soon as possible." |
| Official page | IRS: Understanding your CP136 notice |
What the CP136 is
The IRS says your deposit requirements for Form 941 (Employer's Quarterly Federal Tax Return) "for next year may be different from your requirements for last year." The CP136 tells you which schedule applies. The IRS bases it on the total tax you reported on Forms 941 for the four previous consecutive quarters, called the lookback period.
| Lookback-period tax | Your schedule | When deposits are due |
|---|---|---|
| $50,000 or less | Monthly depositor | Taxes on wages paid during a month are due by the 15th of the following month. |
| Over $50,000 | Semiweekly depositor | Wages paid Saturday, Sunday, Monday or Tuesday: due the following Friday. Wages paid Wednesday, Thursday or Friday: due the following Wednesday. |
Why you got it
You file Form 941, so the IRS reviewed your lookback period and is telling you your deposit schedule for the coming year. It doesn't mean anything is wrong.
One thing to watch: the IRS says if the tax amount it used is zero for any tax period, "then we have no record of receiving Form 941 for that period."
Is there a deadline?
There's no reply form or response date. Two things do have timing:
- If a quarter shows zero, the IRS says: "Please file any missing Form 941 as soon as possible."
- Your deposits follow the schedule above for next year. See IRS Notice 931, Deposit Requirements for Employment Taxes and Publication 15 for the full rules.
What to do, step by step
- Find your schedule on the notice: monthly or semiweekly.
- Compare the liability amounts on the notice with your Forms 941 for the lookback quarters. The IRS says the notice uses only the tax on your original Forms 941, not amended returns.
- Check for any quarter showing zero. If you did file that quarter, gather your filing proof. If you didn't, file the missing Form 941.
- Update your payroll calendar or payroll provider so next year's deposits follow the right schedule.
- Deposit electronically. The IRS says deposits must be paid electronically unless an exception applies (for example, tax for the quarter under $2,500, which can be paid with the Form 941 payment voucher).
- Report liabilities the right way on Form 941: monthly depositors enter each month's tax in Part 2; semiweekly depositors use Schedule B (Form 941). The IRS says to show only the liabilities, not your payments.
Common mistakes
- Ignoring it because it isn't a bill. Depositing on the wrong schedule can lead to failure-to-deposit penalties later.
- Using amended 941 figures to decide your schedule. The IRS says to base it on the original liability.
- Missing a "zero" quarter, which the IRS reads as no Form 941 on record.
- Assuming your payroll app already switched schedules. Confirm it.
- Forgetting the $100,000 next-day rule after a big payroll.
When to get help
Get help if the amounts on the notice don't match your records, a quarter shows zero, or you're moving from monthly to semiweekly and aren't sure your payroll setup can keep up. Connecticut withholding has its own filing and payment rules, so check those at the same time.
General information, not advice for your situation. Not tax, legal, investment, or insurance advice. Agency rules and procedures change; always follow the instructions and dates on your own notice and check the official sources below.
Frequently asked questions
Is a CP136 a bill?
No. It tells you whether you will be a monthly or semiweekly depositor for Form 941 payroll taxes next year, based on the tax you reported in the lookback period.
What is the lookback period for Form 941?
The IRS bases the deposit schedule on the total tax you reported on Forms 941 for the four previous consecutive quarters.
When are monthly payroll tax deposits due?
Monthly depositors must deposit taxes on wages paid during a month by the 15th of the following month.
The tax on my CP136 looks wrong. What do I do?
The IRS says the notice includes only the tax on your original Forms 941 in the lookback period, not amended returns, so compare it to the originals. If the amounts still differ from your records, the IRS says you should determine the appropriate deposit schedule.
What does a zero amount on my CP136 mean?
The IRS says a zero for any period means it has no record of receiving Form 941 for that quarter. File any missing Form 941 as soon as possible.
Sources (checked November 10, 2026)
- IRS, Understanding your CP136 notice (lookback period, $50,000 test, deposit timing, $100,000 rule, $2,500 exception, Schedule B): www.irs.gov
- IRS, Notice 931, Deposit Requirements for Employment Taxes: www.irs.gov
- IRS, Internal Revenue Manual 21.3.1 (CP 136 and CP 136B, Annual Notification of FTD Deposit Requirements, Form 941): www.irs.gov
Running payroll for the first time? Get your deposit schedule, Form 941 and Connecticut withholding lined up with a Connecticut tax preparer.