Form 941 Schedule B for 2021

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IRS Schedule B (Form 941) - Definition, Instructions, and Tips

Updated on April 19, 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 Schedule B 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 a Schedule B (Form 941)?

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.

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 Form 941, line 12, equally throughout the tax period.

7. What are the changes in Schedule B (Form 941) for the 1st quarter of 2021?

For the first quarter of 2021, there are some changes in Schedule B (Form 941).

  • The deferral of the deposit and the payment of the employer share of social security tax for deposits and payments due on or after March 27, 2020, and before January 1, 2021, as well as the deferral of the withholding, deposit, and payment of the employee share of social security tax on wages paid September 1, 2020, through December 31, 2020 have been removed.
  • Form 5884-D is now used to claim the payroll tax credit for certain tax-exempt organizations affected by qualified disasters.

Click here to know more about Revised Form 941 for 1st Quarter, 2021.

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