Form 941

  1. What is Form 941
    Federal tax Form 941, Employer’s Quarterly Federal Tax Return, is the form employers use to report employee wages and payroll taxes.
  2. Who Needs to File form 941
    The IRS requires that any person or business that pays wages to an employee must file a Form 941 with the IRS each quarter. Filing must continue even if there are no employees during some of the quarters. There are certain limited exceptions (e.g., certain employers whose annual payroll tax and withholding liabilities are less than $1,000 may get approval to file the annual version – Form 944).
  3. What Information Needs to be Filed
    Form 941 contains information about the withholding made from employee wages, as well as the employer contributions made for Social Security and Medicare taxes.

Form 941 calculations include totals for:

  • Number of employees and total pay for the period being reported
  • Amounts withheld from pay of employees for the period
  • Taxable Social Security and Medicare wages for the period
  • Calculation of total Social Security and Medicare wages
  • Adjustments for sick pay, tips, group-term life insurance, and other

The form requires a calculation of the total taxes and the total deposits made during the period. If there is a difference between the total taxes due and the total deposits, the amount still owed must be paid.

  1. Paying Tax with Form 941

If you paid the complete amount of your payroll taxes during the months covered by this form, you should see “$0” due.

If you have a small balance due, don’t worry, we can help to make that deposit

Your Form 941 is due by the last day of the month that follows the end of the quarter

For Months:
Quarter Ends
Form 941 Is Due
January, February, March
March 31
April 30
April, May, June
June 30
July 31
July, August, September
September 30
October 31
October, November, December
December 31
January 31

The IRS imposes four filing deadlines (one for each quarter) as follows:

If the deadline falls on a Saturday, Sunday, or legal holiday, Form 941 is due by the next business day.

  1. Methods to File Form 941

SPSus supports several methods to complete Form 941:

  • File on-line using SPSus automated process.
  • Other- SPSus can e-file your own transmission file created from your own system. (Please contact us about this option.)

Form 941 cannot be e-filed by your business. The IRS requires that all businesses electronically file form 941 through an approved intermediary.

  1. Penalties for Noncompliance

a. Deposit Penalties (IRC 6656)
Here’s what you could end up paying if you do not deposit correctly:

  • 2% of the amount due if your payment is 1-5 days late.
  • 5% of the amount due if your payment is 6-15 days late.
  • 10% of the amount due if your payment is 16 or more days late.
  • 10% of the amounts subject to electronic deposit requirements but not deposited using EFTPS
  • 15% of the amount due if you’re notified of your delinquency and pay within 10 days of notice.

b.Filing and Paying Late Penalties (IRC 6651)
Here’s what you could end up paying if you don’t file a 941-tax form:

  • Failure to timely file a Form 941 may result in a penalty of 5 percent of the tax due with that return for each month or part of a month the return is late. The penalty caps out at 25 percent.

Form 940

  1. What is Form 940
  2. Form 940 is the Employer’s Annual Federal Unemployment (“FUTA”) Tax Return. The FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs. The standard FUTA rate is 6% on the first $7,000 paid to the employee. States can receive a tax credit of up to 5.4%, meaning employers pay only 0.6% of the $7,000 paid to the employee.
  3. Who Needs to File Form 940
  4. An employer must file Form 940 if they paid wages of at least $1,500 to any employee during the standard calendar year. Businesses must also file Form 940 if they had any employee (temporary, part-time, or full-time) work anytime during 20 or more weeks. The 20 weeks do not need to be consecutive. There are also several exemptions for special circumstances (e.g., agricultural employees, foreign workers, Household employees, tax-exempt organizations).
  5. When Form 940 Needs to be Filed
  6. January 31st of the following year. However, if that date falls on a weekend or government holiday, the due date is moved to the next business day. E.g., the 2018 filing deadline is Jan. 31, 2019.
  7. Penalties for Noncompliance

These are the same as Form 941. See above.

IRS 941

IRS 941 ( 2018)

IRS 941 ( 2017)

IRS 940

IRS 940 ( 2018)

IRS 940 ( 2017)

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