What is a Quarterly Federal Tax Return?
The Quarterly Federal Tax Return, also known as Form 941, is a tax form that employers use to report the wages, tips, and other compensation paid to their employees, as well as the federal income tax, social security tax, and Medicare tax withheld from those wages. In this article, we will discuss the purpose of Form 941, who must file it, and how to fill it out.
Purpose of Form 941
Form 941 reports employment taxes to the Internal Revenue Service (IRS) every quarter. The taxes reported on the form include the following:
- Federal income tax withheld from employee’s wages
- Social Security tax withheld from employee’s wages
- Medicare tax withheld from employee’s wages
- The employer’s portion of Social Security and Medicare taxes
The information reported on Form 941 calculates the employer’s federal tax liability for the quarter.
Who is Required to File Form 941?
Employers who pay wages to employees and withhold federal income tax, Social Security tax, and Medicare tax from those wages must file Form 941. This includes employers of both household employees and business employees.
Employers who do not withhold any federal taxes from their employee’s wages are not required to file Form 941. However, they may be required to file Form 944, which is a similar form for employers with a smaller tax liability.
Employers must file Form 941 by the last day of the month following the end of each quarter. For example, the form for the year’s first quarter (January, February, and March) is due by April 30th.
In conclusion, Form 941 is a tax form that employers use to report employment taxes to the IRS quarterly. Employers who pay wages to employees and withhold federal income tax, Social Security tax, and Medicare tax from those wages must file the form. The form consists of four parts and must be filed by the last day of the month following the end of each quarter.
