Updated April 09, 2024
A Form 941 (Employer’s Quarterly Federal Tax Return) is an IRS document used by employers to report federal payroll taxes withheld from employees’ wages on a quarterly basis. Federal payroll taxes include income tax and the employer and employee’s FICA contributions to Social Security and Medicare.
Employers Exempt from Filing Form 941
- Seasonal employers for quarters during which they paid no wages
- Employers of household employees
- Employers of farm employees
- Filers of Form 944 (Employer’s Annual Federal Tax Return)
Table of Contents |
What is Form 941?
Form 941 is a required IRS document that businesses must file every three months to report and calculate the federal income tax withheld from employees’ paychecks. It also includes the amount of Social Security and Medicare taxes owed to the IRS by both the employer and the employees.
The following information is reported quarterly:[1]
- Wages paid to employees
- Tips reported by employees
- Federal income tax withheld
- Employee and employer’s share of Social Security and Medicare taxes
- Additional Medicare Tax withheld from employees
- Current quarter’s adjustments to Social Security and Medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance
- Qualified small business payroll tax credit for increasing research activities
2024 FICA Tax Rates
Federal Insurance Contribution Act, also known as FICA, is a payroll tax deducted from each paycheck to fund Social Security and Medicare.
Social Security
The Social Security tax rate is 6.2% each for the employee and the employer. The combined rate is 12.4%.
Beginning in 2024, the maximum amount of employee wages subject to Social Security tax is $168,600, compared to the previous maximum of $160,200.[2]
Medicare
The current tax rate for Medicare is 1.45% each for the employer and the employee, or 2.9% total. There is no wage base limit for Medicare contributions.
For individual wages that exceed $200,000 a year, the employer must withhold an additional 0.9% for additional Medicare tax.[3]
Deadlines
Form 941 must be filed with the IRS by the last day of the month s the end of the quarter.
If timely deposits in full payment of the owed taxes are made for the quarter, Form 941 can be filed by the 10th day of the second month that follows the end of the quarter.[4]
2024 Deadlines
- First quarter (January 1 – March 31, 2024): April 30, 2024
- Second quarter (April 1 – June 30, 2024): July 31, 2024
- Third quarter (July 1, 2024 – September 30, 2024): October 31, 2024
- Fourth quarter (October 1, 2024 – December 31, 2024): January 31, 2025
Form Parts (5)
Part 1: Calculating Balance Due
The first part of the form asks for all the important numbers from the quarter to determine the total amount that the employer owes the IRS. These figures include:
- Number of employees who earned wages
- Wages, tips, and other compensation paid
- Federal income tax withheld
- Social Security and Medicare taxes withheld
- Adjustments for sick pay
- Refundable and non-refundable credit for qualified sick and family leave wages
Part 2: Deposit Schedule and Tax Liability
Indicate whether you are depositing your liabilities to the IRS on a monthly or semi-weekly basis. If monthly, include a breakdown of your tax liabilities due per month. If paying semi-weekly, you must attach Schedule B to the form.
Part 3: Information about the Business
Indicate whether you are a seasonal employer or if your business has closed. Also, include any qualified health care expenses allocable to qualified family leave or sick leave wages in the specified periods in 2021. If questions don’t apply to your business, leave the line blank.
Part 4: Third-Party Designee
Select whether to consent to a designated third party, such as an employee or a tax preparer, to discuss the return with the IRS. If yes, the designee’s name, phone number, and PIN must be provided.
The designee can be used to:[5]
- Give the IRS any information that is missing from the return
- Call the IRS for information about processing the return
- Respond to certain IRS notices about math errors
Part 5: Signature
Sign and print your name, along with your official title. Include a daytime contact phone number and the date.
The following individuals are authorized to sign the return for each of the business types:[6]
- Sole proprietorship — The individual who owns the business.
- Corporation (including a limited liability company (LLC) treated as a corporation) —The president, vice president, or other principal officer duly authorized to sign.
- Partnership (including an LLC treated as a partnership) or unincorporated organization — A responsible and duly authorized partner, member, or officer having knowledge of its affairs.
- Single-member LLC treated as a disregarded entity for federal income tax purposes — The owner of the LLC or a principal officer duly authorized to sign.
- Trust or estate —The fiduciary.
It may also be signed by a duly authorized agent of the taxpayer if a valid power of attorney has been filed.
How to File Form 941
Electronic Filing
To e-file Form 941, use IRS-approved software to submit the completed document. An authorized e-file provider can also be used to file it on your behalf. A fee may be charged to file electronically.
Where to Mail
If filing by paper, where to mail the return depends on whether a tax payment is included with Form 941.[7]
| States | Without a Payment | With a Payment |
|---|---|---|
| Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, Wisconsin | Department of the Treasury
Internal Revenue Service Kansas City, MO 64999-0005 |
Internal Revenue Service
P.O. Box 806532 Cincinnati, OH 45280-6532 |
| Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming | Department of the Treasury
Internal Revenue Service Ogden, UT 84201-0005 |
Internal Revenue Service
P.O. Box 932100 Louisville, KY 40293-2100 |
| No legal residence or principal place of business in any state |
Internal Revenue Service
P.O. Box 409101 Ogden, UT 84409 |
Internal Revenue Service
P.O. Box 932100 Louisville, KY 40293-2100 |
| Special filing address for exempt organizations; federal, state, and local governmental entities; and Indian tribal governmental entities, regardless of location |
Department of the Treasury
Internal Revenue Service Ogden, UT 84201-0005 |
Internal Revenue Service
P.O. Box 932100 Louisville, KY 40293-2100 |
Frequently Asked Questions (FAQs)
How do I make a correction on Form 941?
If you find that your Form 941 has errors after you’ve filed it, fill out and file a Form 941-X to make the correction. If there are errors in more than one quarter, file a separate Form 941-X for each quarter.
Do I need to file a Form 941 Schedule B?
Schedule B is only required for employers who deposit their tax payments on a semi-weekly basis. This means that they reported more than $50,000 of employment taxes in the lookback period or accumulated a tax liability of $100,000 or more on any given day in the current or prior calendar year.
What are the penalties for not filing Form 941 on time?
Depending on how many days the deposit is past due, the penalty can range from 2% to 15% of the total amount due.[8]
Sources
- IRS: Instructions for Form 941 (03/2023) – Purpose of Form 941
- Social Security Administration: “Social Security Announces 3.2 Percent Benefit Increase for 2024”
- IRS: Topic No. 751, Social Security and Medicare Withholding Rates
- IRS: Instructions for Form 941 (03/2023) – When Must You File?
- IRS: Instructions for Form 941 (03/2023) – Part 4
- IRS: Instructions for Form 941 (03/2023) – Part 5
- IRS: Instructions for Form 941 (03/2023) – Where Should You File?
- IRS: Publication 15 (2023), (Circular E), Employer’s Tax Guide – Deposit Penalties