Updated on April 24, 2020 - 10:30 AM by Admin, TaxBandits
If you are an employer, you likely need to fill out and file Form 941 each quarter. To avoid major mistakes, learn how to fill out Form 941 line by line.
In this article, we cover the following topics:
Just follow the below instructions to complete and File your form 941 to the IRS.
First, complete your basic details in
In box 1, enter the EIN, name, business name, and address.
In box 2, choose a quarter for which Form 941 is being filed.
For example, if you are filing the Form for the first quarter of 2020 tax year, put an “X” in the box next to “January, February, March.”
Form 941 for 2020
Part 1 reports the employees, their wages, and the federal income taxes withheld from their paycheck.
Part 1 consists of 15 lines where each line is explained in detail with the information that must be entered.
Enter the number of employees, who got wages, tips, or other pay in the particular quarter
Enter the complete wages, tips, paid and other pay to your employees
Enter the federal income tax withheld from the employee’s paycheck
Check this box if wages are not subject to social security and medicare tax. And if it doesn't apply, please skip this line
Form 941 - Part 1 Instructions
Enter the total wages paid to employees that are subject to social security for the quarter.
Line 5a = Column 1 x 0.124 = Column 2
Enter the tips reported for all your employees during the quarter
Line 5b = Column 1 x 0.124 = Column 2
Enter the wages, tips, that are subject to medicare tax
Line 5c = Column 1 x 0.029 = Column 2
Enter all the taxable wages & tips subject to Additional Medicare Tax withholding
Enter the tax due that you have received from the Section 3121(q) Notice and Demand
Form 941 - 5a-5f Instructions
Enter the sum of line 3, 5e, and 5f
Enter the Adjustment for a fraction of cents (Line 7), sick pay (Line 8), tips and group life insurance (Line 9)
Enter the sum of line 6 to line 9
Enter the amount on Line 11 requires the attachment of Form 8974
Enter the difference between line 11 and 10
Enter the deposits for the quarter including the overpayment applied for the previous quarter and the overpayment applied from Form 941-X for the current quarter
Enter the difference, If line 12 is more than the line 13
Enter the difference, if line 13 is more than line 12. Choose either box, Apply to next return or send a refund as you prefer
Form 941 Part 1 Instructions
Part 2 requires information about tax liability for the quarter, whether you are a semiweekly or monthly depositor.
Line 16, you have options to check any one of the boxes based on your tax liability.
Check box 1, If Line 12
Check box 2, If you were
A monthly schedule depositor for the entire quarter, and enter your tax liability for each month of the quarter (Month 1, Month 2, and Month 3).
Your total liability for the quarter must be equal to line 12 on your form 941.
Check box 3, If you were
A semiweekly depositor during any part of the quarter.
You must also enter the tax liability on Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors, and attach it along the Form 941 if you were a semiweekly depositor.
Form 941 Part 2 Instructions
Part 3 will be mostly used by the businesses closed for the year or by the seasonal employer.
If your business was closed or you stopped paying wages in the quarter, check on line 17 and enter the final date when you paid wages.
If you are a seasonal employer and don’t have to file Form 941 every quarter, then check the box under line 18.
Form 941 Line 17 & 18 Instructions
Part 4 requires information about the third party designee that the employer authorizes to discuss with the IRS.
Check “Yes”, If you wish to discuss this return with the IRS and provide the designee name and phone number. Also, enter the 5 digit pin to use while talking with the IRS.
Check “No”, if you don’t wish to discuss.
Form 941 Part 4 Instructions
Once each and every part is completed, you are required to sign Form 941.
The following persons are authorized to sign the return for each type of business entity.
Paid Preparers Using Only Form 941 must be
Form 941 Part 5 Instructions