Federal tax form 941 is called the Employer’s Quarterly Federal Tax Return. Employers must use this form to report wages paid, tips employees received, federal income taxi withheld, employer and employee share of Social Security and Medicare taxes, adjustments to Social Security and medical care taxes that were made this quarter and credit for COBRA premium assistance payments.
Keep in mind that once you file form 941 you must continue to file quarterly returns even if there are no new taxes to report. You must continue to file quarterly unless you file a final return. There are some exemptions to this rule which would you’ll find on the IRS.gov website.
Completing Form 941
Download form 941 and insert the company demographic information at the top of the form. This includes the employer identification number, company name, trade name if any and address. Make sure to indicate by checking the appropriate box which quarter this federal tax return is for.
Complete Part 1 of form 941 by inserting the number of employees who received wages in line 1 then the wages tips and other compensation line 2. Online 3 insert the income tax withheld.
If no wages tips or compensation were subject Social Security or Medicare tax, put a check in the box online 4 and skip to line 6. If however wages and tips and compensation were subject to Medicare or Social Security insert the appropriate information in lines 5a 5b, 5c, 5d and 5e.
Online 6 total the taxes before adjustment, which means adding lines 3, 5d and 5e. Next insert the current quarter’s adjustments for things such as fractions of cents, sick pay and group term life insurance on lines 7 through 9.
Total the sum of current quarter adjustments and insert them online 10. On lines 11 through 12b insert deposits for this quarter’s COBRA premium assistance payments and the number of individuals for which you provided COBRA premium assistance. The total of those lines should be inserted online 13.
Lines 14 and 15 will determine whether you owe additional taxes or your company is due a refund. If line 10 is more than line 13 the difference is what you owe. If line 13 is more than line 10, then you’re due a refund that you can either request payment or apply the overpayment the next quarter’s return.
Complete Parts 2 through 4
The second section asks questions about your deposit schedule and tax liability for the quarter.
Part 3 of form 941 asks questions about your business and if they do not apply leave it blank. You only have to complete section 4 is you appoint a third party designee. If so, insert the person’s name number and select a five-digit personal identification number.
Part 5, which is the most important part of the application, is where you sign and date the form. If you do not sign the form it will be returned. Make sure to print your name and title next in the appropriate boxes. Insert the best daytime phone number in the event the IRS has to contact you.
If the form is completed by a professional tax preparer, complete the information beneath the signature box.
Completing Form 941V
If in Part 1 of form 941 (line 14) you indicated you owe additional funds, you must complete Form 941V, Payment Voucher (it’s found on the next to last page of Form 941). This is a simple form that requires you to insert your employer identification number, the amount of payment, the quarter for which the payment applies and the demographic information for the business such as the name, address and zip code.
For complete instructions and mailing address information, download Form i941 from the IRS website.