| If you own a small business, you have a small | | | | Social security tax and Medicare tax withheld |
| mountain of paperwork to climb every year. You | | | | from your employee paychecks; 4) Social |
| are probably most familiar with income tax | | | | security tax and Medicare tax that the employer |
| returns and their onerous filing requirements. But if | | | | must pay; 5) Federal payroll tax payments the |
| you have employees, you have a significantly | | | | employer has made for the quarter; and 6) Any |
| more complicated tax situation. There are several | | | | remaining balance due of the quarterly payroll tax |
| payroll-related tax forms that must be filed. One | | | | liability. |
| of them is Form 941, and the purpose of this | | | | After adding up all the federal payroll taxes |
| article is to introduce you to the purpose of this | | | | mentioned above, the employer tax payments |
| form and its IRS-mandated filing rules. | | | | are subtracted from the payroll tax liability to |
| Form 941 is entitled Employer's QUARTERLY | | | | determine whether there's a refund or balance |
| Federal Tax Return. Note that the IRS has | | | | due. There are therefore three possible end |
| graciously emphasized the word "quarterly", so | | | | results: 1) The employer has accurately paid the |
| that's a good place to start. The purpose of Form | | | | liability amount and there is no refund or balance |
| 941 is to report federal payroll information for | | | | due; 2) The employer has paid more than the |
| each calendar quarter, i.e. the 3-month period | | | | liability and is due a refund; and 3) The employer |
| ending March 31, June 30, September 30 and | | | | has paid less than the liability and has a balance |
| December 31. Generally speaking, the form must | | | | due. |
| be filed with the IRS by the end of the month | | | | If you are entitled to a refund, you can request |
| following the end of the quarter, i.e. the due dates | | | | the IRS to send you a check or you can |
| are April 30, July 31, October 31, and January 31. | | | | authorize the IRS to keep the refund and apply it |
| More specifically, the purpose of Form 941 is to | | | | to the next quarter's payroll tax liability. If you |
| report the following federal payroll information for | | | | have a balance due, you should remit a payment |
| each quarter: 1) Wages and other compensation | | | | with the return, also enclosing payment voucher |
| paid to employees; 2) Federal income tax | | | | Form 941-V. |
| withholdings from your employee paychecks; 3) | | | | |