IRS Form 941 Instructions

IRS Form 941 is the Employer's Quarterly Federal Tax Return which is typically used by small business owners. They use Form 941 to report any income taxes that are withheld from Social Security, Medicare, wages, and tips. As Form 941’s name and Form 941 instructions indicate, the form must be filed on a quarterly basis. If a small business owner does not follow these Form 941 instructions, he or she could experience assessed interest and penalties.

Form 941 instructions: Who must file

Employers need to use Form 941 in order to report wages paid, income taxes withheld, tips, employer's Social Security and Medicare taxes paid, Social Security and Medicare taxes paid by employees, Social Security and Medicare adjustments because of sick pay and fractions of cents, advanced earned income tax credit, and COBRA premium assistance payment credits.

Almost all employers need to fill out this form except seasonal employers need and employers of employees in a household as well as farm employees.

Form 941 instructions: Filling out the form

The first section only requires basic information such as an Employer Identification Number, name, business name, and business address. The employer also needs to check the right box to show what quarter the form is for.

As described by Form 941 instructions, Part 1 is used to put the information needed for the current quarter. Part 2 discusses that tax liability in the three months of the discussed quarter on a month to month basis. Make sure to include the which state the tax payment deposits are being made to as well as the amounts on the given lines unless line 10 does not exceed $2,500.

According to Form 941 instructions, Part 3 requires information about the business as applicable. Part 4 requires the employer to choose whether the Internal Revenue Service can share the information provided on this return with any other third parties. Filling out Part 4 gives authorization to do so. Part 5 is the section for a signature and date.

After filling out the form, next thing to fill out according to Form 941 instructions is the payment voucher. Here an Employee Identification Number should be filled out and the correct check box should be marked for the quarter in question. This will also require the payment amount as well as the address of the business. The voucher should be detached from the form and included with Form 941.

The two can then be sent out to the appropriate address. Certain states will require that the forms be sent to the Department of Treasury in Cincinnati, Ohio. This includes but is not limited to Connecticut, Michigan, New Jersey, New York, and Virginia. Other states such as Alaska, California, Florida and Texas require the forms be sent to the Department of treasury in Ogden, Utah or to the IRS’s P.O Box in Atlanta, Georgia.