Employer’s Quarterly Federal Tax Return

Meticulous payroll record keeping helps makes filing tax forms less stressful. You only need to file Form 941 to report all of the payroll related taxes. This form must be filed quarterly.  It’s required of all employers who pay wages subject to income tax withholding and social security and medicare taxes. Form 941 must be filed on the last day of the month that follows the end of the quarter.

Accurate federal quarterly spreadsheets will assist in filling out this tax form. There is a voucher as part of Form 941 that small employers can use to pay their taxes. If the tax due for the quarter is less than $2500, monthly payments aren’t necessary. Instead, pay the quarterly tax simply when Form 941 is filed.

A Breakdown of Form 941

Line 1: Equals the number of employees on the payroll

Line 2: Total wages

Line 3: Total federal income tax withheld

Line 4: Check off if no wages subject to Social Security and Medicare

Line 5: Calculation for Social Security and Medicare wages and tips

Line 6: Total taxes before adjustments

Line 7: Calculations for adjustments

Line 8: Total taxes after adjustments

Line9: Report advanced earned income credit (EIC) payments made to employees

Line 10: Subtract line 8 from line 9

Line 11: Total deposits for this quarter

Line 12: COBRA premium assistance payments

Line 13: Add lines 11 and 12

Line 14: Balance due

Line 15: Overpayment

If an error is discovered on a previously filed Form 941, make the correction using Form 941-X. File Form 941-X separately. Only report one calendar quarter per form. Seasonal employers do not have to file Form 941 during quarters where they have no paid wages. Employers of household employees and farm employees are exempt from filing this form.