Form 941 Employer’s Quarterly Federal Tax Return

What forms do employers file?

Generally, you must file Form 941, Employer’s Quarterly Federal Tax Return (QUARTERLY Federal Tax Return, employer) or Form 944 ANNUAL Federal Tax Return Employer’s ) to report all wages that you have paid and tips your employees have reported to you, as well as payroll taxes (withholding of federal income tax, withholding taxes on Social Security and Medicare , and the part that applies to you in taxes on Social Security and Medicare ). Employers who withhold income taxes, social security tax, or Medicare tax from employee’s paychecks or who must pay the employer’s portion of social security or Medicare tax, use Form 941 to report those taxes.

 

Who may use Form 944?

Only small employers who have been notified by the IRS may use Form 944 and submit the form. To report wages and taxes for agricultural employees, you must file Form 943, Employer’s Annual Tax Return for Agricultural Employees (Annual Federal Tax Return for Agricultural Employees employer).

 

When do you File Form 941?

In each quarter are required to file a Form 941 separately. The first quarter is January through March. The second, from April to June. The third quarter from July to September. The fourth, from October to December. The Form 941 must be filed, usually the last day of the month following the end of the quarter. For example, the wages paid during the first quarter, January to March, is reported on Form 941 and is required to be submitted by 30 April.

If the date on which the statement is a Saturday, Sunday, or legal holiday, you may file the return on the next business day. The term “legal holiday” means any public holiday in the District of Columbia. For a list of public holidays, see Publication 15 , (Circular E), Employer’s Tax Guide (Chapter 11) ((Circular E), Tax Guide for Employers (Chapter 11)), or visit IRS. gov and enter the words ” legal holidays ” in the search window.

 

How to File Form 944?

Some employers with small payrolls, employers including government agencies may submit the Form 944 annual, rather than file Form 941 each quarter. Generally, you must file Form 944  by January 31st of the following year. The purpose of Form 944 is to reduce the burden on small employers, allowing them to file a return for the year and in most cases pay payroll taxes with the return. Form 944 is designed for employers with an annual tax liability of payroll taxes of $ 1,000 or less.

Employers may be eligible to file Form 944 because their estimated payroll tax annual tax liability is $ 1,000 or less, and they want to submit this form must contact the IRS to request to file Form 944.  Employers cannot file a Form 944 unless the IRS notifies them to do so.

 

Form 941 Employer’s Quarterly Federal Tax Return

Every time you prepare a Form 941 for the quarter, you must report the number of employees you have, the total wages you paid and the amount of taxes you withheld to arrive at the amount you must send to the IRS. Before starting the return, you need your payroll records plus documentation for any taxable tips your employees report to you.

 

Employers Required to File Form 941

Those employers who are required to file Form 944 who prefer to file Forms 941 must notify the IRS to request to file Forms 941 quarterly. For more information, see Revenue Procedure 2009-51 (Revenue Procedure 2009-51).

Employers that must file Form 944 and whose businesses grow during the year and whose tax liability payroll tax exceed $ 1,000, just have to file Form 944 for the year. Employers who exceed this limit may not file Form 941 to the IRS notifies them that the requirements to file have been changed to Form 941. Generally, employers are required to deposit their payroll taxes instead of paying taxes when the Form 941 or Form 944 is filed. If you deposited all taxes on time, you have 10 days after the deadline to file your return.

In some cases, amounts reported as Social Security taxes and Medicare must be adjusted to arrive at the correct amount of tax liability that applies to you. For example, the total taxes to Social Security and Medicare on the Form 941 or Form 944 can vary by a small amount of the total shown on your payroll records, because fractions of pennies that has gained or lost to rounding ever did calculate payroll for each employee individually.

You can add or subtract the difference in the adjustment path to fractions of cents. You can also use a line adjustments to state taxes and Social Security Medicare could not raise the tips of their employees, or pay compensation for illness, but for which a third party has withheld taxes to Social Security and Medicare , for example, an insurance company.

 

How to Amend Form 941 and Form 944?

If you want to correct an error on a Form 941 or Form 944 has been above, use the Form 941-X , Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund (Set to the federal return QUARTERLY Federal Tax Employer or claim for refund)  or Form 944-X , Adjusted Employer’s ANNUAL Federal Tax Return or Claim for Refund Employer respectively.

If you file Form 941 and is semiweekly depositor, report your tax liability on Schedule B (Form 941) , Report of Tax Liability for semiweekly Schedule Depositors (Declaration of the tax liability of a semiweekly schedule depositors). If you file Form 944 and are a semiweekly depositor, report your tax liability on Form 945-A, Annual Record of Federal Tax Liability (Annual Register of the federal tax liability). This shows the IRS when an employer paid his employees and the tax liability for that pay. The IRS uses this information to determine if you deposited your payroll taxes on time.

In Part 2 of Form 941 or Part 2 of Form 944, monthly depositors must indicate the combined amount of Social Security taxes, Medicare and federal income tax withheld owed ​​each month. The bi-weekly depositors must indicate on Schedule B of Form 941 or Form 945-A, the combined amount of Social Security taxes, Medicare and withheld federal income tax owed ​​each day.

 

Amending Form 941

You incur the tax liability on the payroll when the wages are paid to employees, not when the payroll period ends. For example, if your payroll period ending 24 September, but does not pay its employees until 1 October, the salaries of these would be declared in the fourth quarter, when you really paid the employees their wages and took the tax liability, not in the third quarter, when the payroll period ended.

 

What are the Penalties Related to Form 941 and Form 944?

It is very important that you complete Part 2 of Form 941, Part 2 of Form 944, Schedule B of Form 941 or Form 945-A properly, or might appear to not deposit their taxes on time. There is a penalty for late deposit between 2% and 15%, depending on the length of time it took to make the deposit.

Usually, unless you qualify to pay taxes with your return, you must have deposited their taxes and should not have balance payable on Forms 941 and 944. If you pay taxes with your tax return and they should have been deposited, you could apply a fine. See the Tax Topic 757 and Publication 15 containing the rules for deposits and payment of taxes with your return. Be sure to sign and date the Form 941 or Form 944 before mailing.

See Publication 15 , ( Circular E ), Employer’s Tax Guide ((Circular E) tax for the employer’s Guide) for more information about requirements for filing Form 941 and Form 944.