Form 941- Employer's Quarterly Federal Tax Form is the form used by employers to report withholding amounts for federal income taxes and FICA taxes (Social Security and Medicare), employer payments for these withholding amounts, and any amounts due to the IRS.
Form 941 includes quarterly calculations and reports:
- Reports of amounts withheld from employee paychecks for federal income taxes and FICA taxes
- Calculation of amounts due, from taxable social security wages and Medicare wages, from both employees and employer
- Adjustments for tips and sick pay
- Calculation of amount due in payment by the employer
- Amounts already paid by employer, on either a monthly or semi-weekly basis, depending on the number of employees and size of payrolls
- And any over- or under-payment.
Form 941 changes for 2014 Form 941 for 2014 payroll taxes will be changing to reflect the additional Medicare tax for high-income individuals. A reminder that the current Social Security rate for 2014 is 6.2% each for employees and employer. The 2014 social security wage limit for 2014 is $117,000. The Medicare tax rate is 145% each for employees and employer, unchanged from 2013. There is no wage base for Medicare tax.
An additional Medicare tax must be withheld from the pay of higher-earning employees. Read more about how the additional Medicare tax should be handled in your payroll administration process.
Here's a copy of Form 941 from the IRS
Form 941 is due on a quarterly basis, at the end of the month following the end of the quarter, on the following schedule:
- For example, for the first quarter of 2013, ending March 31, submit by April 30
- For the second quarter, ending June 30, submit by July 31
- For the third quarter, ending September 30, submit by October 31
- For the fourth quarter, ending December 31, submit by January 31, 2013.
If the due date falls on a weekend day or holiday, the due date is the next business day. For example, if the July 31 due date is a Saturday for that year, the due date for that payment would be Monday, August 2.
How to Submit
Form 941 may be submitted electronically using Federal E-file. You can E-file Form 941 and pay any balance due electronically by using tax preparation software or a tax professional. Read more about how to file Form 941.
How to complete Form 941
Form 941 calculations include totals for:
- Number of employees and total pay for the period being reported
- Amounts withheld from pay of employees for the period
- Taxable Social Security and Medicare wages for the period
- Calculation of total Social Security and Medicare wages
- Adjustments for sick pay, tips, group-term life insurance, and other
The form requires a calculation of the total taxes and the total deposits made during the period. The difference between the total taxes due and the total deposits is the amount still owed that must be paid.
Read more about the specific steps required to complete Form 941.
You can find more about Form 941, including information about how to prepare this return, when it must be submitted, and how to submit corrections: More Information on Form 941.