The IRS Form 941 is a quarterly tax form that employers use to report income taxes, Social Security tax, and Medicare tax withheld from employees' paychecks. This form is essential for ensuring compliance with federal tax regulations. Timely submission of Form 941 is crucial for maintaining accurate tax records and avoiding potential penalties.
The IRS Form 941 plays a crucial role for employers in the United States, serving as a quarterly report that details payroll taxes withheld from employees’ wages. This form is essential for reporting income taxes, Social Security, and Medicare taxes, which are withheld from employee paychecks. Employers must file Form 941 four times a year, providing the IRS with an overview of their payroll tax liabilities and any adjustments made during the quarter. Additionally, this form helps employers reconcile the amounts they have withheld and paid to the IRS. Completing Form 941 accurately is vital, as it not only ensures compliance with federal tax laws but also helps avoid potential penalties. Understanding the nuances of this form, including how to report employee wages, tax credits, and adjustments, is key for any business owner aiming to maintain good standing with the IRS.
What is the IRS Form 941?
The IRS Form 941, also known as the Employer's Quarterly Federal Tax Return, is used by employers to report income taxes, Social Security tax, and Medicare tax withheld from employee paychecks. This form must be filed quarterly and is essential for keeping track of payroll taxes.
Who needs to file Form 941?
Any business that pays wages to employees must file Form 941. This includes corporations, partnerships, and sole proprietorships. If you have employees and withhold taxes from their pay, you are required to submit this form.
When is Form 941 due?
Form 941 is due four times a year. The deadlines are usually the last day of the month following the end of each quarter. For example, for the first quarter (January to March), the form is due by April 30. The other due dates are July 31 for the second quarter, October 31 for the third quarter, and January 31 for the fourth quarter.
How do I file Form 941?
You can file Form 941 electronically or by mail. The IRS encourages electronic filing for faster processing and fewer errors. If you choose to file by mail, make sure to send it to the appropriate address based on your location, which can be found on the IRS website.
What information do I need to complete Form 941?
To complete Form 941, you will need your business's name, address, and Employer Identification Number (EIN). You will also need information about the total wages paid, the number of employees, and the amounts withheld for federal income tax, Social Security tax, and Medicare tax.
What if I make a mistake on Form 941?
If you discover an error after submitting Form 941, you can correct it by filing Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund. This form allows you to make adjustments to previously reported amounts and claim any refunds due.
Can I amend a previously filed Form 941?
Yes, you can amend a previously filed Form 941 using Form 941-X. This form is specifically designed for correcting errors or making adjustments to your original filing. Be sure to follow the instructions carefully when completing the amended form.
What happens if I don’t file Form 941 on time?
Failing to file Form 941 on time can result in penalties and interest on any unpaid taxes. The IRS may impose a failure-to-file penalty, which can increase over time. It’s important to file on time to avoid these additional costs.
Where can I find more information about Form 941?
You can find more information about Form 941 on the IRS website. The site provides detailed instructions, FAQs, and resources to help you understand the filing process and requirements.
Is there a penalty for underreporting taxes on Form 941?
Yes, there are penalties for underreporting taxes on Form 941. If the IRS finds that you have underreported your payroll taxes, you may face penalties and interest on the unpaid amount. It’s crucial to ensure that all information reported is accurate and complete.
Understanding the IRS 941 form is essential for employers. This form is used to report income taxes, Social Security tax, and Medicare tax withheld from employee wages.
Misconception 1: The IRS 941 form is only for large businesses.
This is not true. Any employer who pays wages to employees must file Form 941, regardless of the size of the business. Even small businesses need to report their payroll taxes using this form.
Misconception 2: The 941 form is only filed once a year.
In reality, Form 941 is filed quarterly. Employers must submit it four times a year to report wages paid and taxes withheld. Missing a deadline can lead to penalties.
Misconception 3: Only full-time employees' wages need to be reported.
This is incorrect. Employers must report all wages paid to employees, including part-time workers and even seasonal employees. Every dollar counts when it comes to payroll taxes.
Misconception 4: Filing Form 941 guarantees no audits.
Filing the form does not mean you are immune to audits. The IRS can audit any employer at any time. Keeping accurate records is crucial, regardless of whether you file Form 941.
Form 941 for 2023:
Employer’s QUARTERLY Federal Tax Return
950122
(Rev. March 2023)
Department of the Treasury — Internal Revenue Service
OMB No. 1545-0029
Employer identification number (EIN)
—
Name (not your trade name)
Trade name (if any)
Address
Number
Street
Suite or room number
City
State
ZIP code
Foreign country name
Foreign province/county
Foreign postal code
Report for this Quarter of 2023
(Check one.)
1: January, February, March
2: April, May, June
3: July, August, September
4: October, November, December
Go to www.irs.gov/Form941 for instructions and the latest information.
Read the separate instructions before you complete Form 941. Type or print within the boxes.
Part 1: Answer these questions for this quarter.
1
Number of employees who received wages, tips, or other compensation for the pay period
including: Mar. 12 (Quarter 1), June 12 (Quarter 2), Sept. 12 (Quarter 3), or Dec. 12 (Quarter 4) 1
2
Wages, tips, and other compensation
.
3
Federal income tax withheld from wages, tips, and other compensation
4
If no wages, tips, and other compensation are subject to social security or Medicare tax
Column 1
Column 2.
5a
Taxable social security wages* . .
× 0.124 =
(i)
Qualified sick leave wages* .
× 0.062 =
(ii)
Qualified family leave wages* .
5b
Taxable social security tips . . .
5c
Taxable Medicare wages & tips. .
× 0.029 =
5d
Taxable wages & tips subject to
× 0.009 =
Additional Medicare Tax withholding
5e
Total social security and Medicare taxes. Add Column 2 from lines 5a, 5a(i), 5a(ii), 5b, 5c, and 5d
5f
Section 3121(q) Notice and Demand—Tax due on unreported tips (see instructions) .
6
Total taxes before adjustments. Add lines 3, 5e, and 5f
7
Current quarter’s adjustment for fractions of cents
8
Current quarter’s adjustment for sick pay
9
Current quarter’s adjustments for tips and group-term life insurance
10
Total taxes after adjustments. Combine lines 6 through 9
11a
Qualified small business payroll tax credit for increasing research activities. Attach Form 8974
11b
Nonrefundable portion of credit for qualified sick and family leave wages for leave taken
before April 1, 2021
. . . . . . . . . . . . . . . . . . . . . .
Check and go to line 6.
*Include taxable qualified sick and family leave wages paid in this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021, on line 5a. Use lines 5a(i) and 5a(ii) only for taxable qualified sick and family leave wages paid in this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021.
11c Reserved for future use . . . . . . . . . . . . . . . . . . . . . . 11c
You MUST complete all three pages of Form 941 and SIGN it.
For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher.
Cat. No. 17001Z
Form 941 (Rev. 3-2023)
951222
–
Part 1:
Answer these questions for this quarter. (continued)
11d Nonrefundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021 . . . . . . . . . . . . . 11d
11e
Reserved for future use
. . . . . . . . . 11e
11f
11g
Total nonrefundable credits. Add lines 11a, 11b, and 11d
12
Total taxes after adjustments and nonrefundable credits. Subtract line 11g from line 10 .
13a
Total deposits for this quarter, including overpayment applied from a prior quarter and
overpayments applied from Form 941-X, 941-X (PR), 944-X, or 944-X (SP) filed in the current quarter
13b
13c Refundable portion of credit for qualified sick and family leave wages for leave taken
13c
13d Reserved for future use
13d
13e Refundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021 . . . . . . . . . . . . . . 13e
13f
13g
Total deposits and refundable credits. Add lines 13a, 13c, and 13e
13h
13i
14Balance due. If line 12 is more than line 13g, enter the difference and see instructions . . . 14
15
Overpayment. If line 13g is more than line 12, enter the difference
Check one:
Apply to next return.
Send a refund.
Part 2: Tell us about your deposit schedule and tax liability for this quarter.
If you’re unsure about whether you’re a monthly schedule depositor or a semiweekly schedule depositor, see section 11 of Pub. 15.
16 Check one:
Line 12 on this return is less than $2,500 or line 12 on the return for the prior quarter was less than $2,500, and you didn’t incur a $100,000 next-day deposit obligation during the current quarter. If line 12 for the prior quarter was less than $2,500 but line 12 on this return is $100,000 or more, you must provide a record of your federal tax liability. If you’re a monthly schedule depositor, complete the deposit schedule below; if you’re a semiweekly schedule depositor, attach Schedule B (Form 941). Go to Part 3.
You were a monthly schedule depositor for the entire quarter. Enter your tax liability for each month and total
liability for the quarter, then go to Part 3.
Tax liability: Month 1
Month 2
Month 3
Total liability for quarter
Total must equal line 12.
You were a semiweekly schedule depositor for any part of this quarter. Complete Schedule B (Form 941),
Report of Tax Liability for Semiweekly Schedule Depositors, and attach it to Form 941. Go to Part 3.
Page 2
950922
Part 3: Tell us about your business. If a question does NOT apply to your business, leave it blank.
17 If your business has closed or you stopped paying wages . . . . . . . . . . . . . . .
Check here, and
enter the final date you paid wages
/ /
; also attach a statement to your return. See instructions.
18 If you’re a seasonal employer and you don’t have to file a return for every quarter of the year . . .
Check here.
19Qualified health plan expenses allocable to qualified sick leave wages for leave taken before April 1, 2021
20Qualified health plan expenses allocable to qualified family leave wages for leave taken before April 1, 2021
21
22
23Qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 2021
24Qualified health plan expenses allocable to qualified sick leave wages reported on line 23
25Amounts under certain collectively bargained agreements allocable to qualified sick
leave wages reported on line 23 . . . . . . . . . . . . . . . . . . .
26Qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021
27Qualified health plan expenses allocable to qualified family leave wages reported on line 26
28Amounts under certain collectively bargained agreements allocable to qualified family leave wages reported on line 26 . . . . . . . . . . . . . . . . . . .
19
20
23
24
25
26
27
28
Part 4: May we speak with your third-party designee?
Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? See the instructions
for details.
Yes. Designee’s name and phone number
Select a 5-digit personal identification number (PIN) to use when talking to the IRS.
No.
Part 5: Sign here. You MUST complete all three pages of Form 941 and SIGN it.
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Sign your name here
Date
Print your name here
Print your title here
Best daytime phone
Paid Preparer Use Only
Preparer’s name
Preparer’s signature
Firm’s name (or yours if self-employed)
Check if you’re self-employed . . .
PTIN
/
EIN
Phone
Page 3
951020
This page intentionally left blank
Form 941-V, Payment Voucher
Purpose of Form
Complete Form 941-V if you’re making a payment with Form 941. We will use the completed voucher to credit your payment more promptly and accurately, and to improve our service to you.
Making Payments With Form 941
To avoid a penalty, make your payment with Form 941 only if:
•Your total taxes after adjustments and nonrefundable credits (Form 941, line 12) for either the current quarter or the preceding quarter are less than $2,500, you didn’t incur a $100,000 next-day deposit obligation during the current quarter, and you’re paying in full with a timely filed return; or
•You’re a monthly schedule depositor making a payment in accordance with the Accuracy of Deposits Rule. See section 11 of Pub. 15 for details. In this case, the amount of your payment may be $2,500 or more.
Otherwise, you must make deposits by electronic funds transfer. See section 11 of Pub. 15 for deposit instructions. Don’t use Form 941-V to make federal tax deposits.
▲! Use Form 941-V when making any payment with Form 941. However, if you pay an amount with
CAUTION Form 941 that should’ve been deposited, you may be subject to a penalty. See Deposit Penalties in section 11 of Pub. 15.
Specific Instructions
Box 1—Employer identification number (EIN). If you don’t have an EIN, you may apply for one online by visiting the IRS website at www.irs.gov/EIN. You may also apply for an EIN by faxing or mailing Form SS-4 to the IRS. If you haven’t received your EIN by the due date of Form 941, write “Applied For” and the date you applied in this entry space.
Box 2—Amount paid. Enter the amount paid with Form 941.
Box 3—Tax period. Darken the circle identifying the quarter for which the payment is made. Darken only one circle.
Box 4—Name and address. Enter your name and address as shown on Form 941.
•Enclose your check or money order made payable to “United States Treasury.” Be sure to enter your
EIN, “Form 941,” and the tax period (“1st Quarter 2023,” “2nd Quarter 2023,” “3rd Quarter 2023,” or “4th Quarter 2023”) on your check or money order. Don’t send cash.
Don’t staple Form 941-V or your payment to Form 941 (or to each other).
•Detach Form 941-V and send it with your payment
and Form 941 to the address in the Instructions for Form 941.
Note: You must also complete the entity information above Part 1 on Form 941.
Detach Here and Mail With Your Payment and Form 941.
Form
941-V
Payment Voucher
Department of the Treasury
Don’t staple this voucher or your payment to Form 941.
2023
Internal Revenue Service
1 Enter your employer identification
Dollars
Cents
number (EIN).
Enter the amount of your payment.
Make your check or money order payable to “United States Treasury.”
Tax Period
4 Enter your business name (individual name if sole proprietor).
1st
3rd
Quarter
Enter your address.
2nd
4th
Enter your city, state, and ZIP code; or your city, foreign country name, foreign province/county, and foreign postal code.
Privacy Act and Paperwork Reduction Act Notice. We ask for the information on Form 941 to carry out the Internal Revenue laws of the United States. We need it to figure and collect the right amount of tax. Subtitle C, Employment Taxes, of the Internal Revenue Code imposes employment taxes on wages and provides for income tax withholding. Form 941 is used to determine the amount of taxes that you owe. 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. If you fail to provide this information in a timely manner, or provide false or fraudulent information, you may be subject to penalties.
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 and 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.
Generally, tax returns and return information are confidential, as required by section 6103. However, section 6103 allows or requires the IRS to disclose or give the information shown on your tax return to others as described in the Code. For example, we may disclose your tax information to the Department of
Justice for civil and criminal litigation, and to cities, states, the District of Columbia, and U.S. commonwealths and possessions for use in administering their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.
The time needed to complete and file Form 941 will vary depending on individual circumstances. The estimated average time is:
Recordkeeping . . . . . . . . . . 22 hr., 28 min.
Learning about the law or the form . .
. . 53 min.
Preparing, copying, assembling, and
sending the form to the IRS
1 hr., 18 min.
If you have comments concerning the accuracy of these time estimates or suggestions for making Form 941 simpler, we would be happy to hear from you. You can send us comments from www.irs.gov/FormComments. Or you can send your comments to Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Don’t send Form 941 to this address. Instead, see Where Should You File? in the Instructions for Form 941.
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Failing to sign and date the form. It is essential to provide a signature and date to validate the submission.
Incorrectly reporting employee wages. Ensure that the total wages paid during the quarter are accurately reflected.
Omitting or miscalculating tax credits. Tax credits can significantly reduce tax liability, and missing them can lead to overpayment.
Using the wrong tax period. Each form must correspond to the correct quarter; using an incorrect period can result in penalties.
Not including all employees. Every employee who received wages during the quarter should be accounted for on the form.
Incorrectly calculating the total taxes owed. Double-check all calculations to ensure accuracy in reporting.
Failing to provide the correct Employer Identification Number (EIN). The EIN must match the one on file with the IRS.
Neglecting to check for updates to the form. The IRS occasionally updates forms, so using an outdated version can lead to errors.
Submitting the form late. Timely submission is crucial to avoid penalties and interest on unpaid taxes.
Not keeping copies of submitted forms. Retaining copies of all submitted forms is important for record-keeping and future reference.
When filling out the IRS 941 form, it's important to follow best practices to ensure accuracy and compliance. Here are some key dos and don'ts:
The IRS Form 944 is similar to Form 941 in that both are used by employers to report payroll taxes. However, while Form 941 is filed quarterly, Form 944 is an annual return designed for smaller businesses with a lower tax liability. Employers who qualify for Form 944 can simplify their reporting process by submitting one comprehensive form each year, rather than four separate ones. This can ease the administrative burden and help ensure compliance with tax obligations.
Another document that shares similarities with Form 941 is Form 945. This form is used to report federal income tax withheld from nonpayroll payments, such as payments to independent contractors. Like Form 941, Form 945 is filed annually, but it focuses specifically on nonpayroll withholding. Both forms require accurate reporting of tax liabilities, and both are crucial for maintaining compliance with federal tax laws.
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Form 1099-MISC also has a connection to Form 941, as it is used to report payments made to non-employees, such as freelancers or independent contractors. While Form 941 reports wages and taxes withheld from employee paychecks, Form 1099-MISC details payments made outside of traditional employment relationships. Both forms are essential for ensuring that the IRS receives accurate information about payments and tax liabilities, though they serve different purposes.
Form W-2 is another document that relates to Form 941. Employers use Form W-2 to report wages paid to employees and the taxes withheld from those wages. Like Form 941, it is important for accurately reporting payroll information to the IRS. Both forms help ensure that employees receive the correct tax documentation and that employers fulfill their reporting obligations, thereby maintaining transparency in the payroll process.
Lastly, Form 940 is similar to Form 941 in that it pertains to employer taxes, specifically the Federal Unemployment Tax Act (FUTA). While Form 941 is focused on income and payroll taxes, Form 940 is concerned with unemployment taxes. Both forms are required for employers and help the IRS track compliance with tax obligations. Filing these forms accurately is crucial for avoiding penalties and ensuring that employees are covered under unemployment insurance programs.