What is Form 941?
The IRS Form 941, or Employer's Quarterly Federal Tax Return, is a three-page form by the Internal Revenue Service. Businesses file it quarterly to report income taxes, Social Security taxes, and Medicare taxes deducted from their employees' paycheck.
Form 941 reports the following:
- Paid wages
- Number of employees
- Tips and wages reported by employees
- Federal income taxes withheld from your employees
- Social Security and Medicare taxes of the employers and the employee
- Quarterly adjustments to Social Security and Medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance
After providing these items, Form 941 will inform you how much money you should pay to fulfill your employer tax liabilities for the quarter. The quarterly deadlines for filing this form are the following:
- January 31
- April 30
- July 31
- October 31
Failure to report tax liabilities can result in penalties.
Who must file Form 941?
Not every taxpayer needs to fill out Form 941. Only businesses with employees are obliged to file it quarterly. While it is for the reporting and calculations of the taxes of their employees, there are types of businesses that do not have to file it.
Exempted from filing Form 941 are the following:
- Seasonal businesses are not obliged to file this form quarterly, particularly when they haven't hired anyone.
- Employers that employ only agricultural workers.
- Employers that hire employees for household labors such as maids.
Where to get Form 941?
A copy of Form 941 that you can download and fill out manually is available on the Internal Revenue Service’s website. For your convenience, you may electronically fill out Form 941 on PDFRun.
How to fill out Form 941?
Form 941 consists of five parts and a payment voucher. Make sure to accomplish all parts of the form.
Here is a guide in completing your Form 941.
To begin with, provide the following information:
- Your Employee Identification Number (EIN)
- Your legal name, and not your trade name
- Your trade name, if applicable
- Your address
On the upper right side, check the box to determine the quarter you are reporting.
Line 1: Enter the number of employees on your payroll for the quarter.
Line 2: Provide the total wages, tips, and other compensation such as sick pay, commissions, and bonuses paid to all employees during the filing period.
Line 3: Provide the total federal income tax deducted from employees' paycheck.
Line 4: In this portion, check the box if no employee compensation was subject to Social Security or Medicare tax.
Lines 5a—5d: Calculate your tax obligations according to their classifications. Make sure to double-check what you input.
Line 5e: Add Column 2 from Line 5a to Line 5d.
Line 5f: Enter the tax due from your Portion 3121(q) Notice and Demand, if applicable.
Line 6: Add Lines 3, 5e, and 5f.
Line 7: Enter the total fractions-of-cents adjustment.
Line 8: Enter the amount of the employees' portion of Social Security and Medicare taxes that a third-party sick-pay pay deposited and paid.
Line 9: Enter the total adjustments for tips and group-term life insurance.
Line 10: Add Lines 6 to 9.
Line 11a: Enter the amount of the credit from Form 8974.
Line 11b: Indicate the non-refundable portion of the credit for qualified sick and family leave wages.
Line 11c: Indicate the non-refundable portion of employee retention credit.
Line 11d: Add Lines 11a to 11c.
Line 12: Subtract Line 11d from Line 10.
Line 13a: Enter the total deposits for the quarter.
Line13b: Enter the deferred amount of the employer share of social security tax.
Line13c: Enter the refundable portion of the credit for qualified sick and family leave wages.
Line13d: Enter the refundable portion of employee retention credit.
Line13e: Add lines 13a to 13d.
Line13f: Enter the total advances received from Forms 7200 for the quarter.
Line13g: Subtract Line 13f from Line 13e.
Line 14: In this portion, you will enter the total balance due.
Line 15: Enter the overpayment amount and mark the appropriate box on what to do with it — apply to the next return or send a refund.
Line 16: Indicate whether you are a monthly or semiweekly schedule depositor. If you are a monthly depositor, provide the applicable information on Month 1, Month 2, and Month 3 boxes and compute the total liability for the quarter. If you are a semiweekly depositor, complete Form 941 Schedule B and attach it to this form.
Line 17: Mark the checkbox if your business has closed or stopped paying wages and provide the final date you paid wages.
Line 18: Mark the checkbox if you are a seasonal employer and do not have to file a return for every quarter of the year.
Line 19: Enter the qualified health plan expenses allocable to qualified sick leave wages.
Line 20: Enter the qualified health plan expenses allocable to qualified family leave wages.
Line 21: Enter the qualified wages for the employee retention credit.
Line 22: Enter the qualified health plan expenses allocable to wages reported on Line 21.
Line 23: Enter the credit from Form 5884-C, Line 11, for this quarter.
Line 24: Enter the qualified wage paid March 13 through March 31, 2020, for the employee Retention credit. Only use this section for the second quarter filing of this form.
Line 25: Enter the qualified health plan expenses allocable to wages reported on Line 24. Only use this section for the second quarter filing of this form.
After providing details about your business in the third part of the form, you can now proceed to the fourth part of the form. That section asks for consent to talk with your third-party designee.
Use this section to permit a third party, including an accountant, lawyer, or tax professional who can discuss this form with the IRS on your behalf. Check the box if you allow them or not. Provide the name, contact number, and a five-digit personal identification number upon granting authorization.
Review your form. Check for missing items and possible errors.
Sign and date the form to validate all the provided information. If you paid someone to complete this form on your behalf, you may use the Paid Preparer Use Only section.
Where to Submit Form 941?
Once you’re all done accomplishing the form, you may now submit it. To know where to submit Form 941, visit the official IRS website to see the appropriate addresses.
When to Submit Form 941?
Take note that Form 941 is filed each quarter. These are the deadlines for filing Form 941:
- April 30
- July 31
- October 31
- January 31