941 Form 2021—Employer’s Quarterly Federal Tax Return is the IRS tax form for reporting income paid to employees along with certain taxes withheld from their income for every quarter.
The purpose of Form 941 is to report wage, salary, and tips paid to employees for the quarter and taxes withheld. The tax that is withheld from employees’ income that must be reported on Form 941 are as follows.
- Social Security
- Federal income tax
Since Form 941 is used for reporting FICA (Federal Insurance Contribution Act) taxes, the employer can figure out the portion he or she needs to pay. You can treat Form 941 as your way to figure out and pay FICA taxes. This is the main purpose of Form 941—Employer’s Quarterly Federal Tax Return.
How to file Form 941?
Same as any other tax return, Form 941 can be filed electronically or on paper. Those who e-file will save themselves some time but it’s totally optional. Because you aren’t going to expect anything from the IRS such as a refund, not paying for an e-file provider is more convenient.
Start filing Form 941 online and print out a paper copy to mail it to the Internal Revenue Service. Where to mail Form 941 can be read here.
Who needs to file Form 941?
Form 941 is mandatory to file if you have employees working for you. Your tax classification doesn’t have an impact on whether or not you need to file Form 941. As simple as it sounds, you must file Form 941 if you have employees.
What’s the difference between 941 and 943?
Form 941 is used by most employers. If you have a farm and only employ farm workers, you aren’t required to file a 941. Instead, you will file Form 943. The difference between these two forms is that and when it’s filed. While Form 941 must be filed for every quarter, Form 943 is submitted to the IRS annually.
What is the late-filing penalty for Form 941?
Form 941 must be filed by the end of the following month for each quarter. If you file the first quarter’s Form 941 after April 30, you will have to pay late-penalties. The penalty for filing Form 941 late is 5% of the unpaid tax amount for each month that’s late. This penalty can be up to 25% of the unpaid tax amount if you’re late for five months.
How to pay Form 941 taxes?
With Form 941, FICA taxes are going to be reported and you can pay them through Direct Pay, IRS-authorized payment processor, or EFTPS. Either way work just fine but make sure to attach the payment voucher to your 941 when mailing it.