IRS Form 941 Q4 Deadline is January 31, 2022

Form 941 Schedule B for 2021

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IRS Form 941 Schedule B for 2021 - Definition, Instructions, and Tips

Updated on September 20, 2021 - 10:30 AM by Admin, TaxBandits

If you are an employer, you are responsible for withholding federal income taxes, social security taxes, and Medicare taxes from each of your employee’s wages. The IRS Form 941 Schedule B for 2021 is used by semiweekly schedule depositors that report more than $50,000 in employment taxes. Businesses that acquire more than $100,000 in liabilities during a single day in the tax year are also required to begin filing this Schedule. Continue reading to learn more information about Schedule B (Form 941).

In this article, we cover the following topics:

1. What is IRS Form 941 Schedule B?

Schedule B accompanies Form 941, it’s a daily report of the employer's tax liability for federal income tax withheld from employees. It also reports the employer's share of Social Security and Medicare taxes withheld during the period. For each quarter, this withholding information has to be reported with the IRS using Schedule B Form 941.

Don’t use Schedule B to show federal tax deposits.

With TaxBandits, e-file Form 941 along with Schedule B for 2021 in minutes at $4.95/form. Also get an instant filing status.

2. How do I know if I need Schedule B in Form 941?

Not every employer needs to file Schedule B with their quarterly form 941. It’s specifically for employers who fall under these tax liability categories:

  • Reported more than $50,000 of employment taxes in the lookback period
  • Accumulated a tax liability of $100,000 or more on any given day in the current or prior calendar year

3. Why should you File Schedule B (Form 941)?

If you are a semiweekly schedule depositor, you must complete Schedule B (Form 941) so that the IRS is able to reconcile your business’ wages and withholdings and process your tax payments.

4. How to file Schedule B with Form 941?

You have 2 different options when filling this form:

  • Filing both your Schedule B and Form 941 quarter is most easily done electronically.
  • When paper filing by mail, you will need to file both Form 941 and Schedule B.

5. What is the Deadline to file Schedule B (Form 941)?

There is no special deadline for Schedule B. It must be filed with your Form 941 by the quarterly deadline, which is the last day of the month that follows the end of the quarter.

April 30th - First quarter Deadline (January, February, and March)

July 31st - Second quarter Deadline (April, May, and June)

October 31st - Third quarter Deadline (July, August, and September)

January 31st - Fourth quarter Deadline (October, November, and December)

6. Are there any penalties for not filing Schedule B (Form 941)?

With failure to provide a Schedule B, it may be impossible for the IRS to know exactly which penalty rates apply. Then the IRS will generally split the difference by assessing the average penalties. These are determined by distributing your total tax liability shown on IRS Form 941, line 12, equally throughout the tax period.

7. What are the changes in Schedule B (Form 941) for the 2nd quarter of 2021?

For the Second quarter of 2021, adjusting tax liability for nonrefundable credits claimed on the following lines in Form 941 is introduced.

  • Qualified small business payroll tax credit for increasing research activities
  • Non Refundable portion of credit for qualified sick and family leave wages for leave before
    April 1, 2021
  • Non Refundable portion of employee retention credit
  • Non Refundable portion of credit for qualified sick and family leave wages for leave after
    March 31, 2021
  • Non Refundable portion of COBRA premium assistance credit

Visit to know more about the 2nd quarter Form 941.