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IRS 941 Template

The IRS 941 form is a quarterly tax return that employers use to report income taxes, Social Security tax, and Medicare tax withheld from employee wages. This form is essential for businesses to ensure compliance with federal tax obligations. Understanding its requirements can help employers avoid penalties and maintain accurate payroll records.

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The IRS Form 941 is a crucial document for employers in the United States, serving as a quarterly tax return that reports income taxes, Social Security tax, and Medicare tax withheld from employee paychecks. This form not only helps employers fulfill their tax obligations but also plays a vital role in ensuring that the government receives the necessary funding for essential programs. Each quarter, businesses must accurately complete and submit Form 941, detailing the wages paid, the taxes withheld, and any adjustments that may be necessary from previous filings. Additionally, the form provides information on the employer's share of Social Security and Medicare taxes, contributing to the overall tax liability for the quarter. Understanding the ins and outs of Form 941 is essential for maintaining compliance with federal tax laws and avoiding potential penalties. With deadlines approaching every three months, timely and accurate filing is key to smooth operations for businesses of all sizes.

Key takeaways

The IRS Form 941 is an important document for employers in the United States. It serves as a quarterly report of employment taxes withheld from employees' paychecks. Understanding how to fill out and use this form can help ensure compliance with federal tax regulations.

Purpose: Form 941 is used to report income taxes, Social Security tax, and Medicare tax withheld from employee wages.
Filing Frequency: Employers must file this form quarterly, with deadlines typically falling on the last day of the month following the end of each quarter.
Eligibility: All employers who pay wages subject to federal income tax withholding must file Form 941.
Employee Count: The form requires employers to report the number of employees who received wages during the quarter.
Tax Liability: Employers must calculate and report the total tax liability for the quarter, including both the employee and employer portions of Social Security and Medicare taxes.
Adjustments: If there are any adjustments to the reported amounts from previous quarters, these must be accurately reflected on the form.
Signature Requirement: The form must be signed by an authorized person, affirming that the information provided is accurate and complete.
Electronic Filing: Employers have the option to file Form 941 electronically, which can streamline the process and ensure timely submission.
Record Keeping: Employers should maintain copies of Form 941 and supporting documentation for at least four years.
Penalties: Failure to file Form 941 on time or inaccuracies can result in penalties and interest charges.

By adhering to these key points, employers can navigate the complexities of Form 941 more effectively. Proper completion and timely submission are essential for maintaining compliance with tax obligations.

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Documents used along the form

The IRS Form 941 is used by employers to report income taxes, Social Security tax, and Medicare tax withheld from employee paychecks. Several other forms and documents are commonly used in conjunction with Form 941 to ensure compliance with federal tax regulations. Below is a list of these forms and documents, each described briefly.

Form 940: This form is used to report and pay federal unemployment tax (FUTA). Employers file it annually to determine their liability for unemployment taxes.
Form W-2: Employers must issue this form to employees by January 31 each year. It reports wages paid and taxes withheld, providing necessary information for employees’ personal tax returns.
Form W-3: This is a summary form that accompanies Form W-2. It is used to transmit the W-2 forms to the Social Security Administration and summarizes total wages and taxes withheld.
Form 1099: This form reports various types of income other than wages, salaries, and tips. It is commonly used for independent contractors and freelancers who are not employees.
Form 944: Smaller employers may qualify to file this annual form instead of the quarterly Form 941. It reports the same types of taxes but is intended for those with lower payroll tax liability.
New York Bill of Sale: A Formaid Org provides essential templates that help facilitate the transfer of ownership in transactions while ensuring legal protection for both parties involved.
Form 1096: This is an annual summary and transmittal form used to report information returns, such as Form 1099, to the IRS. It is filed when submitting paper copies of 1099 forms.
Form 4868: This form is used to apply for an automatic extension of time to file individual income tax returns. Employers may use it if they need additional time to file their personal tax returns.

Understanding these forms and documents is essential for maintaining compliance with tax regulations and ensuring accurate reporting of payroll-related taxes. Employers should keep these documents organized and readily accessible for timely filing and record-keeping purposes.

Dos and Don'ts

When filling out the IRS Form 941, which is used to report employment taxes, it’s essential to follow certain guidelines to ensure accuracy and compliance. Here are five key things to do and avoid:

Do double-check your information. Verify that all names, Social Security numbers, and tax identification numbers are correct.
Do use the correct form for the right quarter. Ensure you are using the Form 941 for the specific quarter you are reporting.
Do report all wages accurately. Include all taxable wages and tips paid to employees during the quarter.
Do keep a copy for your records. Retaining a copy of the completed form can be useful for future reference.
Do submit the form on time. Be aware of the filing deadlines to avoid penalties.

Don't forget to sign the form. A signature is required to validate the submission.
Don't use a pencil. Always fill out the form in ink or electronically to ensure clarity.
Don't ignore instructions. Carefully read the instructions provided with the form to avoid common mistakes.
Don't leave any fields blank. If a field does not apply, write "0" or "N/A" as appropriate.
Don't wait until the last minute to file. Procrastination can lead to errors and missed deadlines.

Common mistakes

Filling out the IRS 941 form can be daunting, and many people make mistakes that could lead to complications. One common error is incorrect employee count. When reporting the number of employees, it’s crucial to include only those who received wages during the reporting period. Forgetting to account for all employees or mistakenly including those who did not receive wages can lead to discrepancies.

Another frequent mistake involves miscalculating taxes owed. Some individuals fail to accurately calculate the total taxes based on wages paid, tips received, and other taxable compensation. This miscalculation can result in underpayment or overpayment, both of which can create issues with the IRS.

Inaccurate reporting of tax credits is also a common pitfall. Tax credits, such as the Employee Retention Credit, can significantly reduce the amount owed. However, if these credits are reported incorrectly or not claimed at all, it can lead to missed savings and potential audits.

Many people overlook the importance of signatures and dates. The IRS requires that the form be signed and dated by an authorized individual. Failing to do so can delay processing and lead to penalties. Always double-check that the form is properly signed before submission.

Finally, neglecting to keep a copy of the submitted form is a mistake that can have long-term consequences. Having a record of what was submitted is essential for future reference and in case of an audit. Keeping organized records can save time and stress later on.

File Characteristics

Fact Name	Description
Purpose	The IRS Form 941 is used by employers to report income taxes, Social Security tax, and Medicare tax withheld from employee wages.
Filing Frequency	This form must be filed quarterly. Employers need to submit it for each quarter of the year, specifically by the last day of the month following the end of the quarter.
Payment Requirements	Employers are required to deposit federal payroll taxes on a regular basis, which may be monthly or semi-weekly, depending on the amount of payroll taxes owed.
State-Specific Forms	In addition to the federal Form 941, many states have their own payroll tax forms. For example, California requires employers to file Form DE 9, governed by the California Unemployment Insurance Code.

Form Sample

Form 941 for 2023:	Employer’s QUARTERLY Federal Tax Return	950122
		950122
(Rev. March 2023)	Department of the Treasury — Internal Revenue Service	OMB No. 1545-0029

Employer identification number (EIN)

—

Name (not your trade name)

Trade name (if any)

Address

Number	Street			Suite or room number


City			State		ZIP code


Foreign country name		Foreign province/county			Foreign postal code

Report for this Quarter of 2023

(Check one.)

1: January, February, March

2: April, May, June

3: July, August, September

4: October, November, December

Go to www.irs.gov/Form941 for instructions and the latest information.

Read the separate instructions before you complete Form 941. Type or print within the boxes.

Part 1: Answer these questions for this quarter.

1	Number of employees who received wages, tips, or other compensation for the pay period
	including: Mar. 12 (Quarter 1), June 12 (Quarter 2), Sept. 12 (Quarter 3), or Dec. 12 (Quarter 4) 1


2	Wages, tips, and other compensation						.	2
3	Federal income tax withheld from wages, tips, and other compensation						.	3
4	If no wages, tips, and other compensation are subject to social security or Medicare tax
				Column 1		Column 2.
5a	Taxable social security wages* . .			.	× 0.124 =	Column 2.
							.
5a	(i)	Qualified sick leave wages* .		.	× 0.062 =		.
							.
5a	(ii)	Qualified family leave wages* .		.	× 0.062 =		.
							.
5b	Taxable social security tips . . .			.	× 0.124 =		.
							.
5c	Taxable Medicare wages & tips. .			.	× 0.029 =		.
5d	Taxable wages & tips subject to
5d	Taxable wages & tips subject to			.	× 0.009 =		.
	Additional Medicare Tax withholding			.	× 0.009 =		.
5e	Total social security and Medicare taxes. Add Column 2 from lines 5a, 5a(i), 5a(ii), 5b, 5c, and 5d							5e
5f	Section 3121(q) Notice and Demand—Tax due on unreported tips (see instructions) .						.	5f
6	Total taxes before adjustments. Add lines 3, 5e, and 5f						.	6
7	Current quarter’s adjustment for fractions of cents						.	7
8	Current quarter’s adjustment for sick pay						.	8
9	Current quarter’s adjustments for tips and group-term life insurance						.	9
10	Total taxes after adjustments. Combine lines 6 through 9						.	10
11a	Qualified small business payroll tax credit for increasing research activities. Attach Form 8974							11a
11b	Nonrefundable portion of credit for qualified sick and family leave wages for leave taken
	before April 1, 2021		. . . . . . . . . . . . . . . . . . . . . .				.	11b

Check and go to line 6.

*Include taxable qualified sick and family leave wages paid in this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021, on line 5a. Use lines 5a(i) and 5a(ii) only for taxable qualified sick and family leave wages paid in this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021.

11c Reserved for future use . . . . . . . . . . . . . . . . . . . . . . 11c

You MUST complete all three pages of Form 941 and SIGN it.

For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher.

Cat. No. 17001Z

Form 941 (Rev. 3-2023)

951222

Name (not your trade name)		Employer identification number (EIN)
		–
Part 1:	Answer these questions for this quarter. (continued)

11d Nonrefundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021 . . . . . . . . . . . . . 11d


11e	Reserved for future use	. . . . . . . . . 11e	.
11f	Reserved for future use
11f	Reserved for future use

11g	Total nonrefundable credits. Add lines 11a, 11b, and 11d	11g
12	Total taxes after adjustments and nonrefundable credits. Subtract line 11g from line 10 .	12

13a	Total deposits for this quarter, including overpayment applied from a prior quarter and
	overpayments applied from Form 941-X, 941-X (PR), 944-X, or 944-X (SP) filed in the current quarter	13a
13b	Reserved for future use	13b

13c Refundable portion of credit for qualified sick and family leave wages for leave taken
before April 1, 2021	13c
13d Reserved for future use	13d

13e Refundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021 . . . . . . . . . . . . . . 13e

13f	Reserved for future use	13f
13g	Total deposits and refundable credits. Add lines 13a, 13c, and 13e	13g
13h	Reserved for future use	13h
13i	Reserved for future use	13i

14Balance due. If line 12 is more than line 13g, enter the difference and see instructions . . . 14


15	Overpayment. If line 13g is more than line 12, enter the difference	.	Check one:

Apply to next return.

Send a refund.

Part 2: Tell us about your deposit schedule and tax liability for this quarter.

If you’re unsure about whether you’re a monthly schedule depositor or a semiweekly schedule depositor, see section 11 of Pub. 15.

16 Check one:

Line 12 on this return is less than $2,500 or line 12 on the return for the prior quarter was less than $2,500, and you didn’t incur a $100,000 next-day deposit obligation during the current quarter. If line 12 for the prior quarter was less than $2,500 but line 12 on this return is $100,000 or more, you must provide a record of your federal tax liability. If you’re a monthly schedule depositor, complete the deposit schedule below; if you’re a semiweekly schedule depositor, attach Schedule B (Form 941). Go to Part 3.

You were a monthly schedule depositor for the entire quarter. Enter your tax liability for each month and total

liability for the quarter, then go to Part 3.


Tax liability: Month 1	.

Month 2	.

Month 3	.

Total liability for quarter	.	Total must equal line 12.

You were a semiweekly schedule depositor for any part of this quarter. Complete Schedule B (Form 941),

Report of Tax Liability for Semiweekly Schedule Depositors, and attach it to Form 941. Go to Part 3.

You MUST complete all three pages of Form 941 and SIGN it.

Page 2

Form 941 (Rev. 3-2023)

950922

Name (not your trade name)

Employer identification number (EIN)

–

Part 3: Tell us about your business. If a question does NOT apply to your business, leave it blank.

17 If your business has closed or you stopped paying wages . . . . . . . . . . . . . . .

Check here, and

enter the final date you paid wages

/ /

; also attach a statement to your return. See instructions.

18 If you’re a seasonal employer and you don’t have to file a return for every quarter of the year . . .

Check here.

19Qualified health plan expenses allocable to qualified sick leave wages for leave taken before April 1, 2021

20Qualified health plan expenses allocable to qualified family leave wages for leave taken before April 1, 2021

21	Reserved for future use
22	Reserved for future use

23Qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 2021

24Qualified health plan expenses allocable to qualified sick leave wages reported on line 23

25Amounts under certain collectively bargained agreements allocable to qualified sick

leave wages reported on line 23 . . . . . . . . . . . . . . . . . . .

26Qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021

27Qualified health plan expenses allocable to qualified family leave wages reported on line 26

28Amounts under certain collectively bargained agreements allocable to qualified family leave wages reported on line 26 . . . . . . . . . . . . . . . . . . .


19	.

20	.

21	.

22	.

23	.

24	.

25	.

26	.

27	.

28	.

Part 4: May we speak with your third-party designee?

Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? See the instructions

for details.

Yes. Designee’s name and phone number

Select a 5-digit personal identification number (PIN) to use when talking to the IRS.

No.

Part 5: Sign here. You MUST complete all three pages of Form 941 and SIGN it.

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Sign your name here

Date

/ /

Print your name here

Print your title here

Best daytime phone

Paid Preparer Use Only

Preparer’s name

Preparer’s signature

Firm’s name (or yours if self-employed)

Address

City

State

Check if you’re self-employed . . .

PTIN

Date	/	/
EIN
EIN
Phone
Phone

ZIP code

Page 3

Form 941 (Rev. 3-2023)

951020

This page intentionally left blank

Form 941-V, Payment Voucher

Purpose of Form

Complete Form 941-V if you’re making a payment with Form 941. We will use the completed voucher to credit your payment more promptly and accurately, and to improve our service to you.

Making Payments With Form 941

To avoid a penalty, make your payment with Form 941 only if:

•Your total taxes after adjustments and nonrefundable credits (Form 941, line 12) for either the current quarter or the preceding quarter are less than $2,500, you didn’t incur a $100,000 next-day deposit obligation during the current quarter, and you’re paying in full with a timely filed return; or

•You’re a monthly schedule depositor making a payment in accordance with the Accuracy of Deposits Rule. See section 11 of Pub. 15 for details. In this case, the amount of your payment may be $2,500 or more.

Otherwise, you must make deposits by electronic funds transfer. See section 11 of Pub. 15 for deposit instructions. Don’t use Form 941-V to make federal tax deposits.

▲! Use Form 941-V when making any payment with Form 941. However, if you pay an amount with

CAUTION Form 941 that should’ve been deposited, you may be subject to a penalty. See Deposit Penalties in section 11 of Pub. 15.

Specific Instructions

Box 1—Employer identification number (EIN). If you don’t have an EIN, you may apply for one online by visiting the IRS website at www.irs.gov/EIN. You may also apply for an EIN by faxing or mailing Form SS-4 to the IRS. If you haven’t received your EIN by the due date of Form 941, write “Applied For” and the date you applied in this entry space.

Box 2—Amount paid. Enter the amount paid with Form 941.

Box 3—Tax period. Darken the circle identifying the quarter for which the payment is made. Darken only one circle.

Box 4—Name and address. Enter your name and address as shown on Form 941.

•Enclose your check or money order made payable to “United States Treasury.” Be sure to enter your

EIN, “Form 941,” and the tax period (“1st Quarter 2023,” “2nd Quarter 2023,” “3rd Quarter 2023,” or “4th Quarter 2023”) on your check or money order. Don’t send cash.

Don’t staple Form 941-V or your payment to Form 941 (or to each other).

•Detach Form 941-V and send it with your payment

and Form 941 to the address in the Instructions for Form 941.

Note: You must also complete the entity information above Part 1 on Form 941.

Detach Here and Mail With Your Payment and Form 941.

Form		941-V			Payment Voucher		OMB No. 1545-0029
Form		941-V			Payment Voucher

	Department of the Treasury		Don’t staple this voucher or your payment to Form 941.				2023
	Internal Revenue Service		Don’t staple this voucher or your payment to Form 941.				2023
	1 Enter your employer identification			2		Dollars		Cents
		number (EIN).			Enter the amount of your payment.
					Enter the amount of your payment.
		–			Make your check or money order payable to “United States Treasury.”
3		Tax Period		4 Enter your business name (individual name if sole proprietor).

		1st	3rd
		1st	3rd
		Quarter	Quarter		Enter your address.

		2nd	4th
		2nd	4th		Enter your city, state, and ZIP code; or your city, foreign country name, foreign province/county, and foreign postal code.
		Quarter	Quarter

Form 941 (Rev. 3-2023)

Privacy Act and Paperwork Reduction Act Notice. We ask for the information on Form 941 to carry out the Internal Revenue laws of the United States. We need it to figure and collect the right amount of tax. Subtitle C, Employment Taxes, of the Internal Revenue Code imposes employment taxes on wages and provides for income tax withholding. Form 941 is used to determine the amount of taxes that you owe. Section 6011 requires you to provide the requested information if the tax is applicable to you. Section 6109 requires you to provide your identification number. If you fail to provide this information in a timely manner, or provide false or fraudulent information, you may be subject to penalties.

You’re not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books and records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law.

Generally, tax returns and return information are confidential, as required by section 6103. However, section 6103 allows or requires the IRS to disclose or give the information shown on your tax return to others as described in the Code. For example, we may disclose your tax information to the Department of

Justice for civil and criminal litigation, and to cities, states, the District of Columbia, and U.S. commonwealths and possessions for use in administering their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.

The time needed to complete and file Form 941 will vary depending on individual circumstances. The estimated average time is:

Recordkeeping . . . . . . . . . . 22 hr., 28 min.

Learning about the law or the form . .	. . 53 min.
Preparing, copying, assembling, and
sending the form to the IRS	1 hr., 18 min.

If you have comments concerning the accuracy of these time estimates or suggestions for making Form 941 simpler, we would be happy to hear from you. You can send us comments from www.irs.gov/FormComments. Or you can send your comments to Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Don’t send Form 941 to this address. Instead, see Where Should You File? in the Instructions for Form 941.