You’ll need key information, which we’ll review below, so having it all in one place is a good spot to start. The IRS website includes a page explaining where to file your taxes for Form 941, along with mailing addresses. A private delivery service (PDS) will help ensure your return gets to the IRS on time. PDS deliveries should only be sent to one of these IRS addresses. Returns via mail must be addressed correctly, have enough postage and be postmarked by the U.S.

Are there any Penalties if I Don’t File Form 941 on Time?

An exception to this would be if the employer received a notification to file Form 944, Employer’s Annual Federal Tax Return. This form is typically used for small employers with a minimal tax liability. Seasonal employers do not have to file a Form 941 for the quarters in which they have no tax liability. Employers of household employees usually don’t file a Form 941, and employers of farm employees file Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees, instead.

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If you work with an accountant or a certified public accountant, they can send the form on your behalf along with your payment. Most businesses are required to file Form 941 quarterly, with a few exceptions. Seasonal businesses only need to file for the quarters in which they are operating.

You’ll fill out the next section if your employees’ wages are subject to Social Security or Medicare taxes. You’ll use the equations listed for each to determine the amount in column 2. The IRS doesn’t require seasonal businesses to file a Form 941 during quarters with no seasonal employees.

Tax tools

The top of Form 941 requests your company details, including your EIN, business name, trade name (if applicable), and address. Check the box on the right-hand side of the form that corresponds to the quarter you are reporting. If you’re including a payment, you can pay by money order or check — just be sure to also complete and enclose Form 941-V, or Payment Voucher, along with your submission. Make your check payable to the “United States Treasury” and be sure to include your Employer Identification Number (EIN), “Form 941,” and the applicable tax period in the memo line. You can submit Form 941 electronically using Federal E-file, and you can pay any tax balance due electronically by using tax preparation software or through your tax professional. Don’t forget to sign the form in Part 5, and include the other information asked for in this section before you submit the form.

Form 941 is a Internal Revenue Service (IRS) tax form for employers in the U.S. Employers use this form to report income taxes, social security tax or Medicare tax deducted from employee paychecks. Form 941 is also used to pay an employer’s part of Medicare tax or social security, according to the form 941 definition IRS.

• You must fill out Form 941’s top section with some essential firm data.
• We’ve outlined the filing deadlines and requirements in this guide.
• If depositing monthly, a breakdown of tax liability by month is entered here.
• While the IRS encourages e-filing for its speed, security, and convenience, your choice of filing method depends on your preferences and business situation.
• If you have employees, you’ll likely need to file Form 941.

About Form 941, Employer’s Quarterly Federal Tax Return

You must still file a zero return to inform the IRS that you had no tax liability for that quarter. When it comes to tax forms, the IRS anticipates the needs of different types of businesses. Make sure to enable the automatic filing feature when you set up your payroll software. And fill out Form 8655 to give your software provider permission to file on your behalf. If you need to send a payment, mail a check made out to the U.S. Treasury along with the form or pay online via the Electronic Federal Tax Payment System.

• If the due date falls on a weekend or legal holiday, you can file it on the next business day.
• For semiweekly depositors—those with more than $50,000 for tax liability for the quarter—it’s time to fill out Form 941 Schedule B and attach it with this form.
• Employers of household employees usually don’t file a Form 941, and employers of farm employees file Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees, instead.
• You’ll enter corrections under Part 3 and explain each correction you made in Part 4.
• Small business owners get access to unlimited, year-round advice and answers at no extra cost and a 100% Accurate, Expert Approved guarantee.
• If you want the IRS to contact and discuss the filed Form 941 with a third party on your behalf, this is where you enter their contact information.
• Most businesses are required to file Form 941 quarterly, with a few exceptions.

Taxes Reported on Form 941

Filling out Form 940 may seem daunting at first, but by carefully reviewing the process, line by line, the process can be easily navigated. Here’s a breakdown to guide you through each section and ensure you stay on track. By submitting your information, you agree to Lattice’s Terms of Service and Privacy Policy. If none of these scenarios apply to your business, move on to Part 4. To ensure things go right, follow the instructions before filling out the form.

When are employment tax deposits due?

The total on of these three boxes has to equal Line 12 on Part 1. The IRS is allowing businesses to defer payment of certain employment taxes as part of two tax credits introduced during the 2020 COVID-19 pandemic. You can pay any amount due with Form 941, or you can deposit the payment if the total tax amount on line 12 is less than $2,500. You can also deposit if line 12 on last quarter’s form 941 was less than $2,500 and you didn’t have a $100,000 next-day deposit obligation during the current quarter. Otherwise, you must make deposits according to your deposit schedule, monthly or semi-weekly.

This section lists 15 questions surrounding the tax remitted during the quarter being reported. Before we dive into the details of Form 941, let’s review the basics. Form 941, also called the “Employer’s Quarterly Federal Tax Return,” is used by employers to report income taxes, Social Security tax, and Medicare tax withheld from their employees’ paychecks.