IRS Form 941, Employer’s Quarterly Federal Tax Return
Federal tax Form 941, Employer’s Quarterly Federal Tax Return, is the form employers use to report employee wages and payroll taxes. Form 941 contains information about the withholding made from employee wages, as well as the employer contributions made for Social Security and Medicare taxes. Employers must mail or e-file IRS Form 941 to the IRS every quarter.
Who Needs to File Form 941
Federal law requires employers to withhold certain taxes from their employees’ pay. Each time employers pay wages, they must withhold certain amounts for federal income tax, social security tax, and Medicare tax. Employers must also withhold additional Medicare tax from wages paid to employees in excess of $200,000 in the calendar year. Under the withholding system, taxes withheld from employees are credited to the employees in payment of their tax liabilities.
Federal law also requires employers to pay any liability for the employer’s portion of social security and Medicare taxes, which isn’t withheld from employees. Employers who pay salaries and withhold these taxes must file Form 941 online or on paper to report doing so.
Exemption to File or E-file IRS Form 941
Employers that aren’t required to file federal tax Form 941 are:
- Seasonal employers during quarters when they have no tax liability (they are still required to file in order to tell the IRS they won’t be filing a return for one or more quarters)
- Employers of household employees
- Employers of farm employees
Information Needed to File Federal Tax Form 941
The following is required to e-file IRS Form 941:-
- Wages paid to employees
- Reported tips employees earned
- Federal income taxes withheld
- Social Security and Medicare taxes withheld and contributed to
- Additional Medicare taxes withheld
- Adjustments to Social Security and Medicare taxes, sick pay, tips, and group-life insurance
When is Form 941 Due?
Federal tax Form 941 must be filed each quarter.
The following is policy for submitting 941 tax forms:
- First quarter (January-March) forms are due April 30.
- Second quarter (April-June) forms are due July 31.
- Third quarter (July-September) forms are due October 31.
- Fourth quarter (October-December) forms are due January 31.
If the deadline falls on a Saturday, Sunday, or legal holiday, 941 tax forms are due by the next business day.
If you fail to file or e-file IRS Form 941 on time, you may have to pay a penalty. You may also face penalties if you make late tax payments.
Completing Form 941
Every time you prepare a 941 tax form for the quarter, you must report the number of employees you have, the total wages paid, and the amount of taxes withheld to arrive at the amount you must send to the IRS. Before starting your return, you’ll need your payroll records plus documentation for any taxable tips your employees report.
To file Form 941 online or on paper, you’ll need to include totals for:
- Number of employees
- Pay for the period being reported
- Amounts withheld from employees’ pay for the period
- Taxable Social Security and MEdicare wages for the period
- Calculations of totals of Social Security and Medicare wages
- Adjustments for sick pay, tips, group-term life insurance, etc.
When you calculate your amounts sent to the IRS, in addition to federal income tax, the payment must reflect 6.2% of each employee’s wages for Social Security insurance. It must also include 1.45% of all taxable wages for Medicare tax. As the employer, you’re responsible for making any additional payments to the IRS equal to all Medicare and Social Security taxes withheld. Employers must also withhold from wages any additional Medicare Tax, along with any other taxes withheld, if those wages exceed $200,000.
How to E-file IRS Form 941
The IRS requires that all businesses file Form 941 online through an approved e-file provider or on IRS-authorized paper forms. You can e-file IRS Form 941, Employer’s Quarterly Federal Tax Return, online to the IRS with ExpressIRSForms.
To e-file IRS Form 941, simply:
- Create an ExpressIRSForms account.
- Answer questions in our step-by-step, interview-style program to file Form 941 online without any extra help.
- Provide the following information:
- Wages paid
- Employee tips
- Federal income tax withheld
- Employer/employee shares of Medicare and Social Security taxes
- Current and quarter adjustments
- Review your forms and proceed.
- E-file the pre-populated 941 Form directly with the IRS.
- Online signature PIN & form 8453-EMP e-signing options
- New online signature PIN requests available
- Form 941 schedules B & R supported
- Aggregate e-filing supported
- Current & most recent tax year e-filing
- Easy-sccess, step-by-step interview process
- Built-in audits
- Tax balance payment options
Penalty Calculator: Determine the Cost of Not Paying
Here’s what you could end up paying if you don’t file a 941 tax form:
- 2% of the amount due if your payment is 1-5 days late.
- 5% of the amount due if your payment is 6-15 days late.
- 10% of the amount due if your payment is 16 or more days late.
- 15% of the amount due if you’re notified of your delinquency and pay within 10 days of notice.
You can avoid paying penalties if you do all of the following:
- Pay your taxes when they’re due.
- Fully complete and file Form 941 online or on paper on time.
- Report any and all tax liability as accurately as possible.
- Send valid checks to make tax payments.
- Send completed W-2 Forms to employees.
- File Copy A of W-2 Forms and Form W-3 (if paper filing) with the SSA on time and accurately.
Correction Form 941-X
Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, is used to correct errors on a paper filed or e-filed IRS Form 941.
The following information can be corrected using Form 941-X:
- Wages, tips, and other compensation
- Income tax withheld from wages, tips, and other compensation
- Social Security wages and tips that are taxed
- Medicare wages and tips that are taxed
- Wages and tips that are subject to Additional Medicare Tax that are taxed
- Credits for COBRA premium assistance payments
Form 941 Pricing
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