Taxes and Tax Preparation

What is an IRS 941 form?

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2007-01-13 23:08:05

From General Instructions: Understanding Form 941

Purpose of Form 941 These instructions give you some background

information about Form 941, Employer's QUARTERLY Federal Tax

Return. They tell you who must file the form, how to fill it out

line by line, and when and where to file it. If you want more

in-depth information about payroll tax topics relating to Form 941,

see Pub. 15 (Circular E), Employer's Tax Guide, or visit the IRS

website at and type 'Employment Tax' in the Search box.

Federal law requires you, as an employer, to withhold taxes from

your employees' paychecks. Each time you pay wages, you must

withhold - or take out of your employees' paychecks - certain

amounts for federal income tax, social security tax, and Medicare

tax. Under the withholding system, taxes withheld from your

employees are credited to your employees in payment of their tax

liabilities. Federal law also requires employers to pay any

liability for the employer's portion of social security and

Medicare taxes. This portion of social security and Medicare taxes

is not withheld from employees. Use Form 941 to report: payroll

taxes (withheld federal income tax and both employee and employer

shares of social security and Medicare taxes) for the quarter;

current quarter's adjustments to social security and Medicare taxes

for fractions of cents, sick pay, tips, and group-term life

insurance; and prior quarters' adjustments to payroll taxes (attach

Form 941c). Do not use the Form 941 to report backup withholding or

income tax withholding on nonpayroll payments such as pensions,

annuities, and gambling winnings. Report these types of withholding

on Form 945, Annual Return of Withheld Federal Income Tax.

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