For example, you must generally report wages you pay during the 1st quarter—which is January through March—by April 30. If you made timely deposits in full payment of your taxes for the quarter, you may file by the 10th day of the 2nd month that follows the end of the quarter. For example, you may file Form 941 by May 10 if you made timely deposits in full payment of your taxes for the 1st quarter. The federal income tax withholding tables are included in Pub. If you discover any errors, you’ll need to submit an amended Form 941. You can fill out Form 941-X to correct compensation, income taxes withheld, taxable Social Security tips and wages, and taxable Medicare tips and wages.
The easiest way to file is by using the federal e-file system. This system can be accessed through many common tax preparation providers, including TurboTax, H&R Block, or TaxSlayer. If you work with an accountant or a certified public accountant, they can send the form on your behalf along with your payment. If you don’t file Form 941 by the deadline, you may incur a penalty of 5 percent of the tax due with that tax return for each month or part of a month when the return is late. The maximum penalty for a late return is 25 percent of the tax due.
If you’re a third-party payer of sick pay, enter the federal income tax you withheld (or were required to withhold) on third-party sick pay here. If you’re a third-party payer of sick pay and not an agent of the employer, don’t include sick pay that you paid to policyholders’ employees here if you gave the policyholders timely notice of the payments. 15-A for more information about sick pay reporting and the procedures for transferring the liability to the employer. The $100,000 tax liability threshold requiring a next-day deposit is determined before you consider any reduction of your liability for nonrefundable credits. If you permanently go out of business or stop paying wages to your employees, you must file a final return. To tell the IRS that Form 941 for a particular quarter is your final return, check the box on line 17 and enter the final date you paid wages.
The payroll tax credit election must be made on or before the due date of the originally filed income tax return (including extensions). The portion of the credit used against payroll taxes is allowed in the first calendar quarter beginning after the date that the qualified small business filed its income tax return. The election and determination of the credit amount that will be used against the employer’s payroll taxes are made on Form 6765, Credit for Increasing Research Activities. The amount from Form 6765, line 44, must then be reported on Form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities. IRS Form 941 is the Employer’s Quarterly Federal Tax Return. It’s filed four times per year, and it’s where you report all federal income Accounting For Architects taxes, Social Security tax, and Medicare tax withheld from employees’ paychecks and portions of these taxes paid by you, the employer.
The IRS charges a penalty of 5% of the total tax amount due, and you can be charged an additional 5% fee every month your return has not been submitted, for up to five months. It’s the total tax you owe based on gross payroll minus tax credits and other adjustments for each month. Your tax liability for the quarter must equal the total on line 12. Your quarterly Form 941 may be filed electronically or via paper. To e-file the form, you will need to purchase IRS-approved software or hire a tax professional who is an authorized IRS e-filer. Despite the additional expense, e-file is preferred by many businesses for its convenience.
Payroll tax credit for certain tax-exempt organizations affected by qualified disasters. The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2023. In Part Five, the employer signs, dates and provides a daytime phone number. CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
The IRS warns that employers should not use an earlier revision of Form 941 to report taxes for the 2022 tax year. Employers must use the March 2022 Form 941 version only to report taxes for the quarter ending March 31, 2022. Form 941 submissions must be made by the final day of the month directly following the end of a quarter. If a due date falls on a weekend or federal holiday, submissions may be made by the next business day. The 2025 FICA tax rate is 15.3% of each employee’s gross pay until their annual salary or wages reach the wage base limit set by the IRS ($176,100 for 2025).
To become and remain certified under the certification program, certified professional employer organizations (CPEOs) must meet various requirements described in sections 3511 and 7705 and related published guidance. Certification as a CPEO may affect the employment tax liabilities of both the CPEO and its customers. To become a CPEO, the organization must apply through the IRS Online Registration System.
Employers of household employees usually don’t file a Form 941, and employers of farm employees file Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees, instead. The IRS notes that if none of these exceptions apply, and the business has not filed a final return, it must file a Form 941 each quarter even if the employer didn’t pay wages during the quarter. Enter the federal income tax you withheld (or were required to withhold) from your employees on this quarter’s wages, tips, taxable fringe benefits, and supplemental unemployment compensation benefits. Don’t include any income tax withheld by a third-party payer of sick pay even if you reported it on Forms W-2. Also include here any excise taxes you were required to withhold on golden parachute payments (section 4999). For information on the employment tax treatment of fringe benefits, see Pub.