Quarterly Federal Tax Return

What is Quarterly Federal Tax Return, IRS Form 941?

Businesses or employers need to report their employees’ withheld income and payroll taxes to the IRS four times a year using IRS Form 941, the Employer’s Quarterly Federal Tax Return.

Failure to file an IRS Form 941 timely will result in hefty penalties issued by the IRS. The submitted tax form must report an employee’s:

• Social Security wages(Tax rate: 12.4%)
• Withheld Federal Income Taxes
• Medicare(Tax rate: 2.9%)

How to Determine an Employer’s Quarterly Federal Tax Return?

Some calculations can help determine how much money you should or will need to pay to the government to cover your quarterly payroll taxes. Complete the following estimates for IRS Form 941:

• Number of employees in the company
• Total federal income tax withheld for the quarter
• Employees’ total withheld wages for the quarter
• Total Social Security and Medicare Taxes for the quarter
• The current quarter’s adjustments of sick pay, group-term life coverage, and tips reported
• Payroll tax credit for qualified small businesses’ research purpose

After calculation, if the total result of deposits is zero, then no tax payment is due, but if it shows a negative figure, the employer must make the tax payment.

The form submission process is done through the EPTPS system of the IRS electronically, where the quarterly Form 941 must be submitted using the IRS E-file Options.

Who Needs to File Quarterly Federal Tax Return Form 941?

Any businesses or companies with employees who pay wages must file IRS Form 941 to report and track employment taxes. Some employers also need to file an analog 941 Form at the state level.

Who Does Not Need to File Quarterly IRS Form 941?

In a few unique types of businesses, they don’t need to file an IRS Form 941. For example:

• Seasonal employers who haven’t hired anyone.
• Companies hiring farm employees.
• Employers who hire only household employees, such as nannies, butlers, or maids.

How to File Quarterly Federal Tax Returns?

Quarterly Federal Tax Return Form 941 contains six pages with five parts that an employer must fill out carefully.

• On the first page, the employer must provide the company name, address, EIN(Employer Identification Number), and the form fillup period. Then in the first part, one must report the employee number, wages, and taxes owed to the government.
• In the second part, the employer must mention the tax payment schedule for the employment taxes.
• In the third part, there are two questions— is the business closed, or did it stop paying salary, and does the business work seasonally?
• In the fourth part, the organization is questioned if they authorize permission for a worker, paid tax professional, or a Certified Public Accountant(CPA) to communicate to an IRS officer regarding the tax return. If the employer agrees, they must mention the appointee’s name, number, and Personal Identification Number (PIN).
• In the fifth and last part, the employer must sign with a date and provide a valid daytime contact number.

What is the Due Date for Filing Quarterly IRS Form 941?

The due date for filing Form 941 is one month at the end of each quarter. Below are the calendar due dates for the four quarters of the Form 941 deposits.

• First quarter: From January 1 to March 31. The last deadline is April 30.
• Second quarter: From April 1 to June 30. The last deadline is July 31.
• Third quarter: From July 1 to September 30. The last deadline is October 31.
• Fourth quarter: From October 1 to December 31. The last deadline is January 31.

Note: If the deadline falls on a holiday or weekend, the next deadline is the next business day. Moreover, if an Employer’s Quarterly Federal Tax Return has been paid on time and in full, they get an extension of 10 days for filing Form 941 in the later quarter.

Where to Mail an IRS 941 Form?

Nowadays, 941 Forms are submitted electronically to IRS, but the mailing address depends on:

• The period of the submission
• The company’s location
• Mailing with or without a payment

What are the Available Payment Options for IRS 941 Form?

Some available payment options for 941 Form filing are:

• Credit/Debit Card
• Check
• Money Order
• Electronic Funds Withdrawal(EFW)
• Electronic Federal Tax Payment System(EFTPS)

What is the Difference Between Form 941 and Form 944?

Employers use Form 941 to report withheld income and FICA taxes to the IRS four times(quarterly) a year.

On the other hand, small businesses use Form 944, called Employer’s Annual Federal Tax Return, allowing them to file and pay social security, medicare, and withheld income taxes only once a year instead of quarterly.