IRS Form 941 Employer's Quarterly Federal Tax Return

IRS Form 941, Employer's Quarterly Federal Tax Return, is used by employers in the United States to report employment taxes. These taxes include federal income tax withholdings from employees' wages, employee and employer portions of Social Security and Medicare taxes, as well as any additional Medicare Tax withheld. Filing this form on a quarterly basis allows the Internal Revenue Service (IRS) to keep track of these employment taxes, which the employer is responsible for depositing. If these taxes are not deposited as they should, this form can also calculate any outstanding liabilities.

IRS Form 941, Employer's Quarterly Federal Tax Return, is filed by employers in the United States who withhold income taxes from employees' paychecks, pay Social Security tax or Medicare tax. This form is used to report these taxes and is typically filed on a quarterly basis. Businesses, nonprofit organizations, and government entities may all need to file this form if they have employees. Moreover, seasonal employers or those who have received notification from the IRS to file Form 941, must also abide. It's worth noting the rules can vary for agricultural employers or household employers.

FAQ

Q: What is IRS Form 941?
A: IRS Form 941 is Employer's Quarterly Federal Tax Return. It is used by employers who withhold income taxes, social security tax, or Medicare tax from employee's paychecks or who must pay the employer's portion of social security or Medicare tax.

Q: Who needs to file Form 941?
A: Businesses that have employees need to file IRS Form 941. The exception is for seasonal businesses, and they do not have to file a Form 941 for quarters they have paid no wages.

Q: When is Form 941 due?
A: Form 941 is due four times each year, on the last day of the month following the end of a quarter. For example, for the first quarter (January, February, March), Form 941 is due by April 30.

Q: What are the penalties for not filing Form 941?
A: If you fail to file Form 941, the IRS may impose penalties of up to 5% per month on any unpaid tax, with a maximum penalty of 25%. For late filings, the penalty is 5% per month, up to five months. If both penalties apply in any month, the maximum penalty that month is 5%.

Q: What is the purpose of IRS Form 941?
A: The purpose of IRS Form 941 is to report wages you have paid, tips your employees have received, to calculate the employer's portion of social security or Medicare tax, and to calculate the amount of both employer and employee social security and Medicare tax to be deposited by the employer.

Q: What if I make a mistake on Form 941?
A: If you make a mistake on Form 941, you can correct it using Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund. You must file the correction form within three years of the filing date of the original return.