Updated on April 24, 2020 - 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:
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.
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:
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.
You have 2 different options when filling this form:
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)
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.