Contractor License Practice Exam

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Prepare for the Contractor License Exam with comprehensive quizzes. Study with multiple choice questions, flashcards, and detailed explanations to ensure you're ready for success on exam day!

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When must payroll taxes be deposited by new employers during their first calendar year of business?

The 5th day of the month
The 10th day of the month
The 15th day of the month
The 20th day of the month

The correct answer is: The 15th day of the month

In the context of new employers during their first calendar year of business, payroll taxes must be deposited on the 15th day of the month following the pay period in which the wages were paid. This schedule is generally applicable to new businesses that may be subject to different deposit requirements than established employers. Understanding the timeline for payroll tax deposits is crucial for compliance and avoiding penalties. By aligning with this schedule, new employers can ensure that they fulfill their tax obligations in a timely manner. It’s also important to note that, while established employers might have different deposit schedules based on their tax liabilities, new employers typically are required to adhere to this specific timeline to facilitate an easier adjustment to payroll tax responsibilities.