The IRS may also impose a separate penalty for making late tax payments or paying less than you owe. Dana Ronald, president of the Tax Crisis Institute, emphasized the importance of filing Form 941 promptly each quarter, even if you’ve had no wages or taxes to report for that period. Some exceptions allow businesses to file annually instead of quarterly. For example, if your annual payroll tax and withholding liabilities total less than $1,000, you may request approval from the IRS to instead file Form 944, the annual version of Form 941.

File By the Due Date to Avoid Penalties

The payroll tax credit may not be taken as a credit against income tax withholding, the employee share of social security tax, or the employee share of Medicare tax. Also, the remaining payroll tax credit may not be carried back and taken as a credit against wages paid from preceding quarters. If an employer paid wages subject to federal income tax withholding, Social Security, and Medicare taxes, it’s almost certain the employer must file a Form 941. An exception to this would be if the employer received a notification to file Form 944, Employer’s Annual Federal Tax Return.

. Section 3121(q) Notice and Demand—Tax Due on Unreported Tips

Many forms and instructions discussed in these instructions have Spanish-language versions available for employers and employees. Some examples include Form 941 (sp), Form 944 (sp), Form SS-4 (sp), Form W-4 (sp), and Form W-9 (sp). Although these instructions don’t reference Spanish-language forms and instructions in each instance that one is available, you can see Pub.

Understanding FUTA Taxes

We ask for the information on these forms to carry out the Internal Revenue laws of the United States. We need it to ensure that you’re complying with these laws and to allow us to figure and collect the right amount of tax. Section 6011 requires you to provide the requested information if the tax is applicable to you. Section 6109 requires you to provide your identification number. You’re not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law.

Reporting adjustments from lines 7–9 on line 16.

• If you use a paid preparer to complete Form 941, the paid preparer must complete and sign the paid preparer’s section of the form.
• By checking “Yes,” you authorize the IRS to talk to the person you named (your designee) about any questions we may have while we process your return.
• Social security and Medicare taxes apply to election workers who are paid $2,300 or more in cash or an equivalent form of compensation in 2024.
• Rose Co. is an employer with a calendar tax year that filed its timely 2023 income tax return on April 15, 2024.
• If you reported more than that, you need to make deposits twice a week.
• See Employer identification number (EIN), later, for information about applying for an EIN.

A unique nine-digit EIN is assigned to all corporations, partnerships, and some sole proprietors. Businesses needing an EIN must apply for a number and use it throughout the life of the business on all tax returns, payments, and reports. If you file Form 941 electronically, you can e-file and use EFW to pay the balance due in a single step using tax preparation software or through a tax professional. For more information on paying your taxes using EFW, go to IRS.gov/EFW. Generally, an EFT is made using the Electronic Federal Tax Payment System (EFTPS). If you don’t want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf.

In Part Five, the employer signs, dates and provides a daytime phone number. The following persons are authorized to sign the return for each type of business entity. In Part 3, answer only those questions that apply to your business. If the questions don’t apply, leave them blank and go to Part 4. If line 15 is under $1, we will send a refund or apply it to your next return only if you ask us in writing to do so. Taxable wages & tips subject to Additional Medicare Tax withholding.

• Further, certain federal taxes which are withheld from the employee’s paycheck, such as the Medicare tax, social security tax, income tax, and more are reported on this return.
• If you use a tax preparer to fill out Form 941, make sure the preparer shows your business name exactly as it appeared when you applied for your EIN.
• The top of the form asks for your EIN, business name and other basic business information.
• Businesses that do not report their quarterly tax returns are subject to scrutiny and unannounced audits from the IRS.
• Notify the IRS immediately if you change your business name, business address, or responsible party.
• If you pay wages subject to federal income tax withholding or social security and Medicare taxes, you must file Form 941 quarterly to report the following amounts.

An employer’s agent bears no insurance risk and is reimbursed on a cost-plus-fee basis for payment of sick pay and similar amounts. You may have to deposit the federal income taxes you withheld and both what is form 941 the employer and employee social security taxes and Medicare taxes. File your initial Form 941 for the quarter in which you first paid wages that are subject to social security and Medicare taxes or subject to federal income tax withholding.

Enter the federal income tax you withheld (or were required to withhold) from your employees on this quarter’s wages, tips, taxable fringe benefits, and supplemental unemployment compensation benefits. Don’t include any income tax withheld by a third-party payer of sick pay even if you reported it on Forms W-2. Also include here any excise taxes you were required to withhold on golden parachute payments (section 4999).