IRS Form 941, the Employer’s Quarterly Federal Tax Return, is how you tell the IRS how much you withheld from your team’s paychecks each quarter. Specifically, it allows you to report the withholding amount in income taxes, Social Security, and Medicare, along with your portion of Social Security and Medicare tax.
Do I need to file Form 941?
If you’re an employer, yes indeed. Late 941s can lead to penalties and interest, so make sure you file the form by the last day of the month every April, July, October, and January.
You’ll use the form to report the following things:
- Wages you’ve paid your team
- Tips your employees reported to you
- Federal income tax withheld
- Group term life insurance
- Sick pay
- Tips earned
- Your employee’s share of Social Security and Medicare taxes (and yours)
- The current quarter’s adjustments to Social Security and Medicare taxes
- Additional Medicare Tax withheld from employees
What you need on hand when you’re ready to file
You’ll need your Employer ID number (EIN), legal name you used to apply for the EIN, and company address. Your business name and EIN will be on on every page of the form and any attachments you include. If you’re typing out the form, be sure to use 10-point Courier font.
For the full story on how to complete your 941, check out the IRS instructions here.
This article provides general information and shouldn’t be construed as tax advice. Since tax rules may change over time and can vary by location and industry, please consult a CPA or tax advisor for advice specific to your business.