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Form 941 - Which Year's Form Should I Use?


If you have been reading about changes to Form 941 for 2013, it's true. But you don't have to worry about those changes yet. You DO have to start keeping track of Medicare taxes, because of the new law (the American Taxpayer Relief Act), signed on January 2, 2013. This law increased Medicare taxes for high-income employees and self-employed business owners.

Form 941 due January 31, 2013 is 2012 version

The Form 941 you must file January 31, 2013, is the payroll tax report for the last quarter of 2012.

Use the 2012 version of Form 941 for this January 31, 2013 filing.

Form 941 - 2013 Version

The IRS is working on a new 2013 version of Form 941. This version will include (a) the 2% increase in the Social Security tax employees, and (b) an additional line to account for the new Medicare tax supplemental tax for higher income employees. Use the 2013 version of Form 941 for the reports you will submit starting with the first-quarter report due April 30, 2013. You can take a look at the draft of Form 941 for 2013, but do not file this form.

To review:

1. File the 2012 version of Form 941 by January 31, 2013, for last quarter 2012 payroll taxes.

2. File the 2013 version of Form 941 (when it's available) by April 30, 2013, for the first quarter of 2013.

And don't forget these payroll changes, effective January 1, 2013:

1. You must begin withholding 2% more from employee wages for Social Security, because of the expiration of the payroll tax cut, which reduced Social Security 2% and which expired December 31, 2012.

2. You must track employee income in order to begin withholding an additional 0.9% from employee wages for Medicare when the employee income reaches a specified amount, based on filing status.  (More on this level in this article on the Additional Medicare Tax).

3. You must also track employee income, as in the past, in order to cut off Social Security withholding when the employee reaches the Social Security maximum for the year. For 2013, the amount of wages subject to Social Security tax is $113,700.

Read more about 2013 version of Form 941

Read more about the Additional Medicare Tax


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