IRS 941 Form, the Employer’s Quarterly Federal Tax Return, is the form through which you tell the IRS (Internal Revenue Service) how much amount was withheld from the paychecks of employees each quarter. The quarterly report enables the organizations to analyze the withholding amount in income taxes, along with the portion of Medicare tax and Social Security. 

Who Needs to File Form 941?

Most of the organizations who pay wages to the worker must file Form 941 every quarter. The business entity does not affect the filing requirements and claims. Whether you are a sole proprietor or own a corporation, you need to file Form 941 if you have workers. If you do not have workers for a particular quarter, you still need to file Form 941 and state that you did not have any tax withholdings. 

In short, organizations with workers need to file Form 941 each quarter, but there are some exceptions.

• Organizations with seasonal workers: If the organization only hires workers seasonally, then they do not need to fill out Form 941 every fourth month. Instead of that, they have to complete Form 941 for the quarter they hired seasonal workers and then report to the IRS that they won’t be filing Form 941 for many quarters. 
• People with household workers: If you have a household worker, you do not require to File 941. Instead of that, you need to report the tax withholding yearly on Schedule H of Form 1040. 
• Organizations with farmworkers: Wages paid for agricultural workers are not reported on Form 941. Instead of that, use Form 943. 

When to file Form 941?

If the first quarter ends on March 31, then the form is due by April 30. If the deadline for filing the form falls on a holiday or weekend, then the return is expected on the next business day. If you have made the payroll tax deposits on time and in full during the period, then you have an extra ten days to complete the form. It changes the deadline of the form filling to the 10th of the next month following the end of the quarter. 

Information to File Form 941?

Organizations need the EIN (Employer Identification Number), the legal name used to apply for the EIN, and the address of the organization. The company name and EIN will be on each page of the form and on any attachments included. 

Form 941 is used to report the following details:

• Wages paid the team
• Federal income tax withheld
• Tips the workers reported to the organization
• Sick pay paid to workers
• Group term life insurance premiums paid for workers 
• Tips earned
• The adjustments of the current quarter to Medicare and Social Security taxes 
• The worker’s share of Medicare and Social Security taxes 
• Extra Medicare tax withheld from workers

Information Not to be Reported on Form 941?

Form 941 is only used for reporting tax withholdings on worker wages. It means the organization should not report nonpayroll withholding on Form 941. It includes income tax withholding and employee backup withholding for:

• Annuities
• Pensions
• Gambling wins

To know more about Form 941 and who needs to file it, attend the Compliance Prime Webinar.