IRS Form 941 series is a critical component of tax filing process for employers in the United States. It serves as a quarterly return for reporting income taxes, social security tax, and Medicare tax withheld from employees’ paychecks. As complex as the reports may sound, they are incredibly important to understand and fill out correctly. This article aims to demystify the series of forms encompassed in the IRS Form 941 series.

Understanding IRS Form 941

IRS Form 941 is used by employers to report income taxes, social security tax, or Medicare tax from the paychecks of their employees. employers also use this form to calculate and pay their portion of social security or Medicare tax.

When to File Form 941

Generally, employers are required to file Form 941 on a quarterly basis. Deadlines often fall in the month following the end of a quarter. However, if the due dates fall on a weekend or a public holiday, then the next business day becomes the due date.

First Quarter

For the January to March quarter, Form 941 should be filed by April 30.

Second Quarter

For the April to June quarter, Form 941 should be filed by July 31.

Third Quarter

For the July to September quarter, Form 941 should be filed by October 31.

Fourth Quarter

For the October to December quarter, Form 941 should be filed by January 31.

Components of IRS Form 941

This form comprises several parts. Each part specifically aims to collect information on a different aspect of the employer’s financials.

Part 1

  • Number of employees who received wages, tips, or other payments.
  • Total wages, tips, and other payments.
  • Total income tax withheld from wages, tips, and other payments.
  • Tax adjustments for tips reported by employees to their employer and group-term life insurance.

Part 2

Work out the tax on taxable social security wages and/or taxable Medicare wages and tips.

Part 3

Calculate the total taxes after adjustments. The figure from this part is used in comparing with the total amount deposited for the quarter.

Part 4

Answer questions about the tax liability and the business.

Part 5

Provide information about a third-party designee and paid preparers use only.

Frequently Asked Questions

What is Schedule B of Form 941

Schedule B of Form 941 is also known as Report of Tax Liability for Semiweekly Schedule Depositors. Employers use it to provide a detailed breakdown of their tax liability for particular dates within a quarter.

Do all employers need to file Form 941?

No, filing Form 941 is generally applicable to small businesses and entrepreneurs. Large employers may need to file Form 941, but often use Form 945 instead.