What is Form 941?
Form 941 is an IRS tax form used by employers to report federal income taxes, Social Security tax, or Medicare tax withheld from each employee's paychecks. This form also reports the employer’s share of Social Security and Medicare tax contributions for the employees.
As an employer, you must file Form 941 each quarter even if you don’t have any tax liability or employees for the quarter. To do so, you must indicate this on the 941 Form by checking the box on line 18. See how TaxBandits simplifies
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What’s reported on Form 941?
Generally, the IRS requires the following information on your 941 form.
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Wages you’ve paid to the employees
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Tips your employees reported to you
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Federal income tax you withheld from your employees' paychecks
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Both your (employer) and your employees' share of Social Security and Medicare taxes
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Additional Medicare Tax withheld from employees if any
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Attach Form 941 schedule b if you are a semi-weekly schedule depositor
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Current quarter's adjustments to Social Security and Medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance
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Qualified small business payroll tax credit for increasing research activities (using Form 8974)
Need help calculating your taxes to be reported on Form 941?
Use our Free Payroll Tax Calculator to calculate federal income tax (based on Employee’s W-4), Social Security, and Medicare taxes that are to be reported on Form 941.
Are there any changes in 941 for 2025?
The IRS has released Form 941 for the 2025 tax year. As a result, the following changes have been made.
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The Social Security wage base limit is increased.
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The Social Security and Medicare tax withholding thresholds are updated for wages paid to household
and election workers.
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The IRS has introduced an electronic filing option for making corrections to previously filed 941.
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COVID-19 credits for qualified sick and family leave wages can no longer be claimed on Form 941.
Click here to learn more about the changes you need to be aware of to ensure Form 941 compliance.
What information is required to file your Form 941?
To fill out IRS Form 941, you must have accurate payroll records and business information. Here’s the checklist that will ease out your 941 filing. Ensure you have this information available so you can complete your filing without any delays.
- Employer Identification Number (EIN)
- Business name, address
- Number of employees
- Total wages paid for the quarter
- Federal income tax withheld
- Medicare and Social Security tax withheld
- Deposits Made to the IRS
- Balance due if any
- Deposit schedule and tax liability
Click here to view the step-by-step instructions to complete the 941 form.
Who is exempt from filing Form 941?
Special rules apply if you fall under any of the following categories of employers.
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Form 941 is not required for seasonal employers who do not pay employee wages during one or more quarters. To notify the IRS, simply check the box on Line 18 of Form 941 for each quarter you file, indicating that you won't
file a 941 form for any quarters in which no wages are paid.
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Businesses that hire farmworkers or household employees, are exempt from filing Form 941. Instead, employers of agricultural employees typically file Form 943.
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Additionally, businesses with total employment tax liabilities of less than $1,000 annually are required to
file Form 944 rather than Form 941.
For more information on this, refer to IRS Publication 15.
When is the deadline to file Form 941?
Form 941 is generally due by the last day of the month that follows the end of the quarter. Please note that this deadline is only to file your 941 return and you must deposit your taxes beforehand.
For the first quarter of 2025, Form 941 is due by April 30, 2025. Check out your 941 filing and deposit deadline for the other quarters of the 2025 tax year.
What happens if you file Form 941 late?
If you fail to file a Form 941 on or before due, it may result in 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 for
detailed information.
How do you file a 941 for your business?
Form 941 can be filed either electronically or by paper. However, the IRS recommends that you choose to e-file Form 941 for quicker processing.
Moreover, e-filing 941 helps you save time and effort and eliminates additional costs for printing, envelopes, and postal mailing. In order to e-file Form 941 securely and accurately, you must get started with an IRS-authorized e-file provider, and TaxBandits has got you covered!
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When the deadline looms, trust TaxBandits to handle your filing with ease. TaxBandits offers automatic tax calculations, built-in error checks, and all required forms (941 Schedule B
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How to correct errors made on IRS Form 941?
If there is any error on your previously filed Form 941, it must be corrected using Form 941-X, Adjusted Employer's Quarterly Federal Tax Return, or Claim for Refund. You must use a separate Form 941-X for each quarter that needs correction or each Form 941 for which the correction is to be made.
Until 2023, Form 941-X can only be filed on paper. However, starting in 2024, the IRS supports the e-filing of 941-X.
Click here to learn more about the information you can correct using Form 941-X.
