Form 941, Employer's Quarterly Federal Tax Return is used by employers to:

• Report federal income taxes, Social Security tax, or Medicare tax withheld from employee's paychecks.
• Report the employer’s portion of Social Security or Medicare taxes to the IRS.

Get detailed information about Form 941.

The IRS has made some significant changes to Form 941 for 2025 that employers must be aware of before they file 941 for their business.

• The Social Security wage base limit is increased from $168,600 to $176,100.
• In 2025, Social Security and Medicare taxes apply to the wages of household workers who earn $2,800 or more and election workers who receive $2,400 or more in cash.
• The COVID-19-related credit for qualified sick and family leave wages can no longer be claimed on Form 941.
• Employers can now file Form 941-X electronically to make corrections to previously filed 941.

Check out our latest article to know more about the changes to Form 941.

If you're an employer who pays wages subject to federal income tax withholding or Social Security and Medicare taxes, you must file Form 941 quarterly to report the below-mentioned amounts:

• Wages paid to employees.
• Tips reported by your employees.
• Federal income tax withheld.
• Both the employer and the employee share of FICA (Social Security and Medicare) taxes.
• Additional Medicare Tax withheld from employees (if applicable).
• The current quarter's adjustments to FICA taxes include fractions of cents, sick pay, tips, and group-term life insurance.
• Qualified small business payroll tax credit for increasing research activities (using Form 8974).

Employers need to file Form 941 even if no wages were paid for the quarter.

In such cases, the tax amount will automatically be zero. The IRS expects you to file Form 941 even when the tax amount is zero. Learn more about how to report zero taxes on Form 941.

No wages to report?

TaxBandits simplifies zero reporting on Form 941 with our ‘File Zero Wage Return’ button. Simply click it and choose the condition for zero reporting.

If you are a semiweekly schedule depositor, you should attach 941 Schedule B along with Form 941. You are a semiweekly depositor if you:

• Reported taxes exceeding $50,000 during the lookback period
• Accrued a tax liability of $100,000 or more on any day during the current or previous calendar year.

Quick Note: For example, the lookback period for the year 2025 is from July 1, 2023, to June 30, 2024.

Small businesses are able to claim qualifying research expenses and activity against their payroll tax liability. To do this, employers must complete and attach Form 8974. Employers have the option to fill this form out while filing their 2025 941 Form with TaxBandits.

TaxBandits will help you claim the R&D tax credit for your research expenses in a few simple steps. We will auto-populate the required information for
Form 8974 when you e-file Form 941 through TaxBandits. Once you review both forms, you can transmit the return directly to the IRS.

If you file Form 941 late, the IRS will impose a penalty of 5% per month or partial month you are late, the penalty goes up to a maximum of 25%.

The IRS will also penalize you for late payment or not paying the full amount owed. You will be charged 2-15% of the unpaid tax determined by the number of days it remains unpaid.

Get more detailed information about Form 941 penalties for not filing or not paying the taxes.

The balance due is the amount owed to the IRS after reconciling your tax liabilities and deposits for the quarter. You can pay the 941 balance due through TaxBandits using the following methods:

• Electronic Funds Withdrawal (EFW)
• Electronic Federal Tax Payment System (EFTPS)
• Credit/Debit Card
• Check or Money Order

For more information about payment methods for the balance due, click here.

To correct errors on a previously filed Form 941, you need to use Form 941-X. This form allows you to amend details such as wages, tax amounts (whether underreported or overreported), and other relevant information.

Can I amend 941 online?

Starting in 2024, the IRS has begun accepting e-filing of the 941-X form. Click here to know how to e-file 941-X using TaxBandits.