Form 941

Understand your IRS tax forms

Form 941 Instructions, Form 941 schedule b

Form 941What is Form 941?

IRS Form 941 is a quarterly tax return form that employers must file. All American employers have to withhold federal taxes from their workers’ paychecks, including Social Security taxes, Medicare and federal income taxes. All employer withholdings are credited toward the worker’s tax liability, and are reported on the yearly W-2 form. Employers also have to pay a portion of Medicare and Social Security taxes which are not deducted from their workers’ paychecks.

Any employer who withholds taxes has to fill out and file Form 941, and the amounts on the form must include all wages paid, federal income tax withheld, yours and your workers’ share of Medicare and Social Security taxes, and any adjustments due to sick pay, term life insurance and advance earned income credit. Form 941 shouldn’t be used for reporting backup withholding, or for pensions, lottery winnings or annuities. Form 941 is not used for seasonal employees, and those who employ in their own home are not usually required to file it.

If you sell a business, both the new owner and you must file Form 941 for the quarter when the sale happened. The new owner should only report their share of taxes and wages paid. If you close a business, you must file a final return, indicating it on the form’s Line 18. The form is due at the end of the month following the end of the quarter; for instance, if the first quarter ends on March 31, Form 941 is due by April 30.

Download Form 941 at:

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