Form 941 is a form used by small employers. Form 941 is used to report the following amounts:
- Wages you have paid to your employees
- Tips your employees have received
- Federal income tax you have withheld from employees
- Social Security and Medicare taxes
- Sick pay, tips and group term life insurance
- Advanced earned income credit payments
- And a few others….read Pub. 941 for full report
When Should You File Form 941?
You should file your initial Form 941 for the first quarter in which you paid wages. After your initial filing you will have to file every quarter from then on, even if you don’t have taxes to report. There is one exception and that is for seasonal employers who are filing their final return.
Special Rules for Some Employers
Seasonal employers do not have to file a 941 tax form for the quarters in which they have no tax liability. If you’re not paying wages then you don’t have the tax liability. You do have to let the IRS know on line 19 that you did not have any wages to report. Be sure to do explain that every quarter you file form 941.
Household employees create another special circumstance. As an employer of a household employee, you do not file a 941 for them, you will use a Schedule H attached to your 1040. See Publication 926 for more information on that employment situation.
If you employ farm employees, you do not file form 941. Take a look at form 943. Form 943 is the employer’s annual tax return for agricultural employees.
Questions, Questions, Questions
What if your business reorganizes or closes? When should you deposit your taxes? How should you deposit your taxes? Should you use any other forms? What about penalties and interest? If you have not found all of the information you were looking for then, I would suggest consulting with TurboTax Online.
They have earned the #1 rating year after year from companies we trust. They also have Audit Alert which will scan your return and let you know if they see any red flags waving for the IRS. Let the tax experts do all the hard work for you today!
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