Form 941

You need to complete it only if you make a payment with the IRS forms 941. If you are looking for a printable form 941 in PDF format, you found the right service. With PDFLiner you can easily fill out the form and click “Print” in the “Done” menu if you need a paper version. Just remember that the filing deadline always falls on the last day of the month following the end of the quarter. This gives you one month to prepare the form before submitting it to the IRS. Failure to file a Form 941 in time may result in a penalty of 5 percent of the tax due with that return, and can increase up to 25 percent.

It is used to detail money for which taxes are not withheld, including freelance income, prizes and awards, rental income, and more. Determine whether your business is a monthly or semi-weekly depositor. Semi-weekly depositors are typically businesses with more than $50,000 in tax liability for the quarter and must fill out Form 941 Schedule B.

Form 941

The IRS may request copies of electronic accounting software records, so be sure that have them handy if you choose to file online. If you don’t use digital accounting services, there may be certain documents and proof of filing details that the IRS will require you to mail (even if you file online). If your employment tax liability is less than the deposits you’ve made, the overpayment gets noted on line 15. You can choose to receive a refund check or have the overpayment applied as a credit on your next tax return by checking one of the boxes next to line 15.


Form 941 is used to report business income and payroll taxes on a quarterly basis. You must report the total amount your business paid in wages and tips as well as the amount your business withheld from employees’ paychecks for their income taxes. You must also report the employer and employee portions of Medicare and Social Security taxes.

Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page. Get the most out of your Thomson Reuters Tax & Accounting products. Our continued learning packages will teach you how to better use the tools you already own, while earning CPE credit. Includes any payroll items set up as special type Reported Tips and Indirect Tips. Here’s a step-by-step guide and instructions for filing IRS Form 941. Many or all of the products featured here are from our partners who compensate us.

While filing through the mail is free, there is no way to file for free online. This is why so many businesses turn to tax professionals like those at Indinero to file this important form. A calculation of the total taxes and deposits for the period is required. If you’re filing online, you can use EFTPS to pay your tax bill.

How Do I Submit a Quarterly 941 form?

If you’re a monthly depositor, fill in the three boxes labeled Month 1, Month 2 and Month 3 — this total must equal the number on line 12 on Part 1. On top of facing penalties for failing to file your tax return, you will also be charged an initial penalty of 0.5% of the unpaid tax amount if you also did not pay the taxes owed. After receiving a notice of intent to levy from the IRS, the penalty will increase to 1% after ten days. This penalty will continue to increase every month until the payment is made. At the end of the payroll Form 941, you’ll be asked if you want to grant a third party, like a tax preparer or payroll provider, permission to discuss your form with the IRS. You need to complete this if you end up owing the IRS additional taxes.

Now that we’ve covered what Form 941 is, let’s discuss how to file the quarterly tax form. You can find the current version of the form and complete instructions on the IRS website2. Before starting the return, you need your payroll records plus documentation for any taxable tips your employees report to you. Accounting for these items will result in a total amount of money you will need to pay to cover your payroll tax responsibilities for the quarter.

Some states have analogs to Form 941 that you may also have to file to report income withholdings and employer taxes at the state level. Enter the number of employees your business had last quarter, the total your business paid in wages and tips, and the total amount withheld from employees for federal income tax. In box 11d, enter any nonrefundable credits for qualified sick and family leave taken between March 31 and October 1. Now subtract line 11g from line 10 and enter that amount in line 12 to get your total taxes after adjustments and credits. In box 1, you’ll provide the number of employees at your organization who received wages, tips, or other compensation for the quarter.

If you have more questions about form 941 or anything else regarding your business’s financials, book a call with one of our experts. As you’re likely aware, the IRS doesn’t mess around when it comes to due dates. They charge both flat fees as well as annual interest for late payments.

How Do I Complete the Form?

Failure to timely file a Form 941 may result in a penalty of 5% of the tax due with that return for each month or part of a month the return is late. A separate penalty applies for making tax payments late or paying less than you owe. The IRS will charge you 2 to 15% of your underpayment, depending on how many days you are late paying the correct amount. As the employer, you are responsible for making an additional payment to the IRS equal to all Medicare and Social Security taxes withheld. Also, beginning in 2015, an employer must withhold Additional Medicare Tax from wages paid in excess of $200,000 during the year in addition to any other taxes withheld. When filing Form 941, companies are also expected to pay the employer portion of social security or Medicare tax.

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In box 2, you’ll provide the total wages, tips, and other compensation for all of your employees for the quarter. In box 3, you’ll add the federal income tax you withheld from wages for the quarter. IRS Form 941, also known as the Employer’s Quarterly Tax Return, is a form employers use to report any federal income tax, Social Security tax, and Medicare tax withheld from their employees. This information is then used to calculate your employment taxes. In an effort to cut back on the amount of paper used to file taxes and forms, the IRS will allow you to file your 941 tax forms online.

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Remember when we mentioned that most employers deposit their payroll taxes on a monthly or semiweekly basis? In this section of the form, you’ll need to identify your deposit schedule and how much you deposited each time. If you use a monthly schedule, you’ll be able to go ahead and enter this information on the Form 941. If your company makes deposits on a semiweekly basis, you’ll need to attach a completed Schedule B. Filers who need to complete the Schedule B should reference this helpful IRS how-to guide. Regardless of whether you own and operate a small business or a multibillion-dollar corporation, if you pay employees a wage, you have to file Form 941. The IRS is diligent in the way it keeps track of employee wages and how much needs to be taken out of those wages in the form of taxes.

Don’t leave tax compliance to chance—working with a payroll provider or third party helps streamline IRS reporting. Among companies with 500 or fewer employees, 60 percent administer payroll with help from an outside vendor. Whether you’re a brick-and-mortar small business or a multinational corporation, if you have employees on payroll you’ll likely need to to file a payroll Form 941 every quarter.

Is it necessary to file a 941 if you don’t have payroll?

Additionally, employers must report each employee’s wages and taxes annually, on Form W-2, to the Social Security Administration. Form 941 is a quarterly report of wages paid to employees and withholdings made by employers. It also includes information on the employer’s share of Medicare and Social Security taxes during the period reported.

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The form includes information about the employer’s tax liability, as well as the amount of taxes that have been withheld from employees’ paychecks. 941 fillable form is submitted by employers to report the taxes that were withheld from employees’ wages. It can be income taxes, Medicare tax, social security tax, etc. The employer is also responsible for making an additional payment to the IRS that matches the amount of money withheld for Medicare and Social Security taxes for all of their employees. As of 2015, the employer portion of payroll taxes must withhold additional Medicare tax from wages paid in the excess of $200,000 during each fiscal year as well as any other taxes withheld. Most businesses are required to file Form 941 quarterly, with a few exceptions.

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If it isn’t already, a reminder to complete the four-page form should be on your HR calendar. Calculate the total amount owed for Social Security and Medicare taxes—including both employee and employer portions—and the amount owed for additional Medicare tax. Add any adjustments for sick pay and group life insurance policies, then calculate your total tax. Your organization might be a semiweekly schedule depositor if the total taxes owed on line 12 during the previous four quarters was more than $50,000.

The IRS deadlines for the quarterly forms are April 30, July 31, October 31, and January 31 of each year. Most businesses that pay wages to one or more employees at any point during a calendar year need to file Form 941. This includes S-corporations that only have a single employee. Businesses typically need to file Form 941 every quarter, even if there are quarters in which they have no employees. The withholdings you report on each quarter’s Form 941 should add up to the totals you report on all of your employees’ W-2 forms at the end of the year.

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