Updated on April 24, 2020 - 10:30 AM by Admin, TaxBandits
If you are an employer, you are responsible for withholding federal income tax, social security tax, and Medicare tax from each employee’s wages.
For each quarter, this withholding information has to be reported with the IRS using Form 941.
In this article, we cover the following topics:
The IRS Form 941, Employer’s Quarterly Federal Tax Return, used by businesses to report employee wages and payroll taxes.
Usually, Form 941 reports:
Employers or business owners who pay wages to an employee must file IRS Form 941 every quarter.
There are a few exceptions. If you are
then you don’t have to file Form 941.
As an employer, you need to report the following information when you are filing form 941 with the IRS:
Use Form 941 for reporting tax withholdings from employee wages. You shouldn’t report nonpayroll withholding information on Form 941. This includes employee backup withholding and income tax withholding for:
Use Form 945 to report the withholdings from pensions, annuities and gambling wins.
Your IRS Form 941 is due by the last day of the month that follows the end of the quarter:
If the due date falls on any federal holiday, then the next business day will be the filing deadline.
The tax rates for both Social Security and Medicare have remained the same.
E-filing of Form 941 is the easiest method and it is actually preferred by the IRS. Employers will be able to get their IRS filing status instantly and the total filing process will take less than 5 minutes. This method saves employers time and allows them to easily pay their balance due as well.
The traditional paper filing Form 941 involves more time and effort. Many hidden costs like printing, envelopes, and postal mailing charges are included. Tracking the filing status of your Form 941 can be stressful for employers, as they might not know whether or not the return is accepted by the IRS.