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It’s time to file Form 941 for Q2, 2025! Click here to explore how we can simplify your filing.
Form 941 Instructions
IRS Form 941 consists of two pages divided into five parts. You need to complete all two pages and sign on Page 2. Here are step-by-step instructions on how to fill out Form 941.
If you are an employer, you need to fill out and file Form 941 for each quarter. To avoid major mistakes, learn the Form 941 instructions for 2025 and know how to fill out IRS Form 941.
In box 1, enter the EIN, name, business name, and address.
Box 2: Choosing Quarter
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 the 2025 tax year, put an “X” in the box next to “January, February, March.”
Part 1 - Questions for the quarter
Part 1 reports the Number of employees, their wages, and the federal income taxes withheld from their paychecks.
Part 1 consists of 15 lines where each line is explained in detail with the information that must be entered.
Line 1
Enter the number of employees, who got wages, tips, or other pay in the particular quarter
Line 2
Enter the complete wages, tips, paid and other pay to your employees
Line 3
Enter the federal income tax withheld from the employee’s paycheck
Line 4
Check this box if wages are not subject to social security and medicare tax. And if it doesn't apply, please skip this line
Line 5a : Taxable Social Security Wages
(*Include qualified sick and family leave wages taken after March 31, 2021)
Line 5a = Column 1 x 0.124 = Column 2
Enter the tax due that you have received from the Section 3121(q) Notice and Demand
Line 5b : Taxable social security tips
Enter the tips reported for all your employees during the quarter
Line 5b = Column 1 x 0.124 = Column 2
Line 5c : Taxable Medicare wages & tips
Enter the wages, tips, that are subject to medicare tax
Line 5c = Column 1 x 0.029 = Column 2
Line 5d : Taxable wages & tips subject to Additional Medicare Tax withholding
Enter all the taxable wages & tips subject to Additional Medicare Tax withholding
Line 5d = Column 1 x 0.009 = Column 2
Line 5e : Total social security and Medicare taxes
Sum of Column 2 from Lines 5a, 5a(i), 5a(ii), 5b, 5c and 5d.
Looking to Calculate Taxes to be reported on Form 941?
Use our Free Payroll Tax Calculator to compute Federal Income tax, Social Security, and Medicare taxes that is to be withheld from each employees paycheck.
Line 5f : Section 3121(q) Notice and Demand—Tax due on unreported tips
Enter the tax due that you have received from the Section 3121(q) Notice and Demand
The IRS issues Section 3121(q) Notice and Demand to employers advising them to report tips that their employees have failed to report. Employers aren’t liable for their share of social security and medicare taxes unless the employer receives this notice.
Enter the Adjustment for a fraction of cents (Line 7), sick pay (Line 8), tips and group life insurance (Line 9)
Line 10 : Total taxes after adjustments
Enter the sum of line 6 to line 9
Line 11 : Qualified small business payroll tax credit for increasing research activities
Enter the amount calculated in Form 8974 and attach.
Form 8974 is used to determine the amount of credit that can be claimed for the increasing research activities.
Line 12 : Total taxes after adjustments and nonrefundable credits
To get this amount, Subtract line 11 from line 10 as the amount on line 12 can’t be less than zero.
Line 13 : Total deposits for this quarter, including overpayment applied from a prior quarter and overpayments applied from Form 941-X, 941-X (PR), or 944-X filed in the current quarter.
Line 14 : Balance due
If the amount you entered in line 12 is more than the amount entered in line 13. Enter the difference and refer to the instructions below:
You can make federal tax deposits for the amount shown on line 14 using EFW.
If you are a monthly schedule depositor and making a payment for the amount shown on Line 14, you can pay by EFW, EFTPS, Credit or debit card, check, money order.
File Form 941-V, if you prefer to pay the balance due using check or money order.
If you were unable to pay the balance due in full you can apply for an installment agreement online. To apply using the Online Payment Agreement Application, please visit IRS.gov/OPA.
Note: TaxBandits supports EFTPS Payments, where you can pay your federal taxes in a easy and secure way.
Line 15 : Overpayment
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.
If you deposited more than the correct amount for the quarter, you can either choose to get the refund for the overpayment or apply it to your next 941 return.
Form 941 Part 2 - Deposit schedule and tax liability for the quarter
On your previous quarterly return was less than $2,500
You didn’t incur a $100,000 next-day deposit obligation during the current quarter
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 tax 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 3 - About your business
The third portion of the 2025 IRS Form 941 collects information that will not be relevant to every business, for example, if the business is closing or is a seasonal employer. If the question does not apply to the business you are filing for, leave the field blank.
Line 17 : If your business has closed or you stopped paying wages
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.
Line 18 : If you are a seasonal employer and you don’t have to file a return for every quarter of the year
If you are a seasonal employer and don’t have to file Form 941 every quarter, then check the box under line 18.
If lines 17 and 18 don’t apply to your business, then just leave Part 3 blank and move on to Part 4.
Form 941 Part 4 - Third-party designee
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 5 - Signature
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.
Sole proprietorship: Individual who owns the company
Corporation or an LLC treated as a corporation: President, vice president, or other principal officer
Partnership or an LLC treated as a partnership: Partner, member, or officer
Single-member LLC: Owner of the LLC or a principal officer
Trust or estate: The fiduciary
Paid Preparers Using Only Form 941 must be
941 Form must be signed by a duly authorized agent of the taxpayer if a valid power of attorney has been filed.
If the form is prepared by the paid preparer, enter their information such as name, signature, address, PTIN, and contact number.
A paid preparer is someone who completes your Form 941 filing and is responsible for preparing payroll tax forms on your behalf.
If your Form 941 is filed by a paid preparer, they have to enter their information
on part 5.
How to file Form 941 for a business?
Form 941 can be filed either on paper or electronically. However, the IRS recommends you choose e-filing for a better, quicker, and more efficient filing process.
If you opt for paper filing, you must complete all the necessary information, print it, and send it to the appropriate mailing address to the IRS via email.
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