Form 941

Frequently asked questions about Form 941

Form 941, Employer’s Quarterly Federal Tax Return, is used by employers to report federal income tax withheld from employee wages and Social Security and Medicare taxes. The questions below cover who files Form 941, when it is due, where to send it and what happens if it is filed late.

What is Form 941?

Form 941 is the Employer’s Quarterly Federal Tax Return. Employers use it to report federal income tax withheld from employee wages, along with the employee and employer shares of Social Security and Medicare taxes.

The return also compares the employer’s total tax liability for the quarter with the payroll tax deposits already made. Form 941 does not report federal unemployment tax, which is reported separately on Form 940.

Who needs to file Form 941?

Most employers that pay wages subject to federal income tax withholding or Social Security and Medicare taxes must file Form 941 each quarter.

Employers that commonly file Form 941 include:

• Businesses with employees on payroll
• Corporations, LLCs and partnerships that withhold employment taxes
• Nonprofit organizations with employees subject to federal withholding
• Employers responsible for withholding federal income tax, Social Security or Medicare taxes

Some employers use a different employment tax return. Agricultural employers generally file Form 943, household employers generally use Schedule H and certain small employers may file annual Form 944 if the IRS has notified them that they qualify.

What is the difference between Form 940 and Form 941?

Form 940 and Form 941 report different employment taxes and have different filing schedules.

• Form 941 reports federal income tax withholding and Social Security and Medicare taxes and is generally filed quarterly.
• Form 940 reports federal unemployment tax (FUTA), which is generally paid by the employer, and is filed annually.

An employer may need to file both forms because Form 940 does not replace Form 941.

When is Form 941 due?

Form 941 is generally due by the last day of the month following the end of each calendar quarter:

• First quarter: April 30
• Second quarter: July 31
• Third quarter: October 31
• Fourth quarter: January 31

When a deadline falls on a weekend or legal holiday, the return is generally due on the next business day. Employers that made all required tax deposits on time may also qualify for a short extension of the filing deadline.

Where do you mail Form 941?

The correct mailing address for Form 941 depends on the employer’s location and whether a payment is included with the return.

The IRS provides current mailing addresses on its Form 941 filing instructions. Employers should check the latest IRS instructions before mailing a paper return because filing addresses can change.

How do you file Form 941 electronically?

Form 941 can be filed electronically through an IRS-authorized provider or eligible payroll software. Many payroll services prepare and submit employment tax returns on behalf of employers.

Electronic filing can help reduce errors and provides confirmation that the return was received. Any tax balance due must be paid separately according to IRS payment requirements.

What happens if you don't file Form 941?

The IRS may charge a penalty when Form 941 is filed late. The failure-to-file penalty is generally 5% of the unpaid tax for each month or part of a month that the return is late, up to 25%.

Additional penalties and interest may apply when employment taxes are paid late. Employers that fail to file or pay may also receive IRS notices and face collection actions.

Need to complete Form 941?

Use Lumin’s fillable Form 941 template to enter employer and payroll tax information, report federal income tax withholding and Social Security and Medicare taxes and complete the quarterly return. Review the information before signing and keep a completed copy for business records.