While workers are required to file their taxes annually, their employers must file and pay federal taxes quarterly via a Form 941. Failure to file and pay on time incurs a penalty fee. Read on to learn all about 941 tax forms, including who needs to file, what to report, and filing deadlines.
What is IRS Form 941?
Form 941, also known as the employer’s quarterly federal tax return, is a tax form employers use to report income taxes, Social Security tax, or Medicare tax withheld from employees’ paychecks. It also helps calculate the employer’s tax liability for the quarter, which includes the employer’s share of Social Security and Medicare taxes.
What’s Reported in 941 Forms?
Items that must be reported on Form 941 include:
- Number of employees who received wages, tips, or other compensation for the pay period
- Total wages, tips, and other compensation
- Federal income tax withheld
- Social Security and Medicare tax amounts
- Adjustments for tips, sick pay, and group-term life insurance
- Relevant tax credits
Who Needs to File 941 Forms?
Any employer that pays wages subject to federal income tax withholding or Social Security and Medicare taxes is required to file Form 941 quarterly. Seasonal businesses that don’t pay wages in a given quarter and some small employers who file annually using Form 944 may be exempt.
What You Need to File 941 Forms
To streamline the Form 941 filing process, ensure you have the following information and documentation readily available:
- Employer Identification Number (EIN)
- Business name and address
- Number of employees compensated during the quarter
- Total wages paid during the quarter
- Federal income tax withheld
- Social Security and Medicare tax amounts
- Any tax deposits made during the quarter
- Adjustments for sick pay, tips, life insurance, and other credits
How to Fill Out 941 Forms Step-By-Step
Follow these steps for filling out Form 941:
- Fill out business information at the top of the form, including EIN, business name, and address.
- Check the appropriate box to mark the quarter in which you’re filing.
- Answer the questions asked about your business, including number of employees who received wages in the quarter, total compensation paid during the quarter, and total amount of federal income tax withheld.
- Either note no compensation is subject to Social Security and Medicare tax, or use lines 5a through 5e to calculate Medicare and Social Security withholdings.
- If applicable, fill out tax due on unreported tips. The IRS offers clear instruction on whether this applies.
- For line 6, add the lines 3, 5e, and 5f to calculate total taxes before adjustment.
- Note adjustments in lines 7 through 9, then calculate the total taxes after adjustments on line 10.
- Use lines 11 or 12 to note and adjust for any small business credit.
- In lines 13-15, compare the total tax liability to payments already made during the quarter to determine any balance due or overpayment.
- Use Part 2 of Form 941 to determine your tax deposit schedule.
- Fill out Part 3 only if the questions are applicable to your business.
- In Part 4, indicate whether the IRS can speak to a designated party about your return, such as a tax preparer.
- Sign and date the form in Part 5.
- If mailing the form, detach and fill out the payment voucher to mail along with the form and payment.
How to File 941 Forms Online
Tax filers have the option of mailing their forms and payments or filing online. Filing online is the faster option. To e-file Form 941, you need to use IRS-approved software. The IRS provides a list of e-filing providers based on tax year. You can also use the Authorized IRS e-file Provider Locator Service to find a tax professional who can submit the forms online for you.
941 Form Filing Deadlines
Form 941 is due on the last day of the month following the end of each quarter. The quarterly deadlines for Form 941 are:
- Q1: April 30
- Q2: July 31
- Q3: October 31
- Q4: January 31
Resources for Filing 941 Forms
For assistance filing Form 941, check out the IRS instructions, consult an accountant, utilize tax preparation software online, or implement payroll software that makes tax compliance easier. For example, Paycor Payroll Software includes a tax compliance dashboard for accuracy, offers tax recommendations, and handles the details of tax processing.
Federal IRS Form 941 FAQs
Still have questions regarding quarterly 941 forms? Read on.
What Is a Corrected 941 Form?
A corrected 941form, Form 941-X, is used to amend mistakes on previously filed 941 forms.
How Long Do You Have to Correct a 941 Form?
You may correct overreported taxes on a previously filed form within three years of the date the federal 941 form was filed or two years from the date you paid the tax, whichever is later. You may correct underreported taxes on a previously filed Form 941 within three years of the filing date.
Where Do I Mail 941 Forms?
The mailing address for Form 941 depends on what state you’re in and whether you owe taxes. You can find 941 form mailing addresses on the IRS website.
Can I File a 941 Form Online?
Yes! You can file Form 941 online with IRS-approved software or through an e-filing provider.
What Happens if I File My Form Incorrectly?
If you file Form 941 incorrectly, you can file a correction with Form 941-X.
How Paycor Helps
Streamline tax filings with Paycor. We offer Payroll software that’s intuitive, flexible, and backed by tax compliance expertise. From accurate withholdings and autoruns of payroll on a scheduled day to payroll reports, Paycor offers tools to simplify workforce management. Take a guided tour to see Paycor’s solutions in action.