IRS Form 941, or we know it as the Employer’s Quarterly Federal Tax Return form is used to report employment taxes which are: Federal income tax withholding, Social Security tax and Medicare taxes. As the IRS said, use Form 941 to report the following amounts of:
- Wages you have paid.
- Tips your employees have received.
- Federal income tax you withheld.
- Both the employer’s and the employee’s share of social security and Medicare taxes.
- Current quarter’s adjustments to social security and Medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance.
- Credit for COBRA premium assistance payments.
When To File Form 941? The name says it all, Quarterly Federal Tax Return means you file every three months even if you don’t have taxes to report. Those quarters are:
- January, February, March
- April, May, June
- July, August, September
- October, November, December
There are some exceptions and special rules apply to some employers. Employers do not need to file IRS Form 941 if they are Seasonal employers, Employers of household employees and Employers of farm employees.