Form 941: Employer’s Quarterly Federal Tax Return Explained

Who is required to file tax Form 941?

• If you’re an employer who pays wages subject to federal income tax withholding, Social Security tax, or Medicare tax, you’re required to
  file Form 941.
• If you did not pay any employees during the quarter and have
  no taxes to report, you’re still required to file Form 941, unless you’ve filed a final return or qualify for an exception.

Who is Exempt from Filing the 941 Form?

You may not need to file a 941 form if:

• You're a seasonal employer and didn’t pay wages during
  the quarter
• You employ farm workers (file Form 943 instead)
• You employ household workers (report using Schedule H with your Form 1040)
• Your total annual tax liability is less than $1,000, and the IRS has notified you to file Form 944 annually instead

What Information is Reported on the
941 Form?

Here’s a quick walkthrough of what you’ll need to report on the 941 form (refer to the image for visual guidance):

• 1. Employer Information

  Provide your EIN, business name, and address (See label 1
  in the image).

• 2. Employee & Wage Details

  Report the number of employees, total wages paid, and federal income tax withheld for the quarter (See Lines 1–3 under label 2).

• 3. Social Security & Medicare Taxes

  Include the amount of Social Security and Medicare taxes withheld from wages (See Lines 5a–5e under label 3).

• 4. Tax Liability & Deposit Information

  Indicate whether you’re a monthly or semiweekly depositor and provide a breakdown of your tax liability by month (See label 4
  in the image).

Check out our article for step-by-step instructions to complete your
941 Form.

IRS Form 941 Updates for 2025: What You Need to Know

The IRS has released Form 941 for the 2025 tax year, bringing a few important updates. These include an increase in the Social Security wage base limit and updated tax thresholds for household and
election workers.

Additionally, the IRS now allows electronic filing of corrections for previously filed 941 forms. Also, COVID-19 credits for qualified sick and family leave wages can no longer be claimed.

Learn more about the detailed changes to Form 941

How to file your 941
Quarterly Report?

You can either file Form 941 electronically or by mailing a paper return to the IRS. However, the IRS recommends e-filing 941, as it is generally faster, more secure, and provides instant confirmation.

If you still choose to file 941 on paper, you can complete the form and mail it to the IRS. The mailing address depends on your business’s location and whether payment is included.

If you need to send a payment, mail a check made out to the U.S. Treasury along with the form, or pay online via the Electronic Federal Tax Payment System.

What happens if you file Form 941 late?

If you fail to file a Form 941 on or before the due date, you may be subject to a penalty of 5% of the unpaid tax amount for each month the return is late. The penalty will be up to a maximum of 25%.

Check out our article about Form 941 penalties.

How can you correct a mistake made on
Form 941?

If there is any error on your previously filed Form 941, it must be corrected using Form 941-X. You must use a separate Form 941-X for each quarter or Form 941 that needs correction.

Until 2023, Form 941-X can only be filed on paper. However, starting in 2024, the IRS supports the e-filing of 941-X.