Form 941: What to Know as an Employer

IRS Form 941, also known as the Employer’s Quarterly Federal Tax Return, is used when businesses report the income taxes, payroll taxes, Social Security and Medicare taxes withheld from their employees’ wages. Many businesses are required to file IRS Form 941 on a quarterly basis, and the form ultimately determines the company’s total payroll tax liability for Navigating Financial Growth: Leveraging Bookkeeping and Accounting Services for Startups the quarter. Any remaining credit, after reducing the employer share of social security tax and the employer share of Medicare tax, is then carried forward to the next quarter. Form 8974 is used to determine the amount of the credit that can be used in the current quarter. The amount from Form 8974, line 12 or, if applicable, line 17, is reported on line 11.

Key Changes to IRS Form 941 for the 2024 Tax Year

The following persons are authorized to sign the return for each type of business entity. If your installment agreement is accepted, you will be charged a fee and you will https://theseattledigest.com/navigating-financial-growth-leveraging-bookkeeping-and-accounting-services-for-startups/ be subject to penalties and interest on the amount of tax not paid by the due date of the return. Taxable wages & tips subject to Additional Medicare Tax withholding.

IRS Form 941 for 2024 & 2023: Employer’s Quarterly Federal Tax Return

You must also select a five-digit PIN to use when talking to the IRS (e.g., 12345). Mark if you want the amount applied to your next return or if you want the IRS to send you a refund. If line 15 is under one dollar, the IRS will send a refund. Or, the IRS can apply it to your next return if you ask them to do so in writing. If line 12 is more than line 13, enter the difference on line 14. You do not have to pay if your line 14 total is less than one dollar.

Part 5: Signature

• The integration allows them to add value for their clients and expand monetization efforts.
• If you permanently go out of business or stop paying wages to your employees, you must file a final return.
• For more information about applying for a PTIN online, go to IRS.gov/PTIN.
• Don’t use a credit or debit card to make federal tax deposits.
• You’re not authorizing your designee to bind you to anything (including additional tax liability) or to otherwise represent you before the IRS.
• While the IRS encourages e-filing for its speed, security, and convenience, your choice of filing method depends on your preferences and business situation.

Your preparer must also check off whether they’re self-employed. The deadlines for filing Form 941 are strict, and fall on the last day of the month following the end of a quarter (April 30, July 31, October 31, and January 31). You can view, download, or print most of the forms, instructions, and publications you may need at IRS.gov/Forms. Otherwise, you can go to IRS.gov/OrderForms to place an order and have them mailed to you. The IRS will process your order for forms and publications as soon as possible.

Sign and complete Form 941 (Part .

Business owners love Patriot’s award-winning payroll software. Patriot’s Basic Payroll software customers will get a prefilled version of Form 941 with all of the information we have available from them. It is the customer’s responsibility to review and file Form 941 with the IRS.

If you reported less than $50,000, then you must make monthly deposits. If you reported more than that, you need to make deposits twice a week. The new owners and you must both file Form 941 for the quarter when the transfer happened. A Form 1040 return with limited credits is one that’s filed using IRS Form 1040 only (with the exception of the specific covered situations described below).

Media Services