You ‘re required to file a freestanding form 941 for each quarter ( first quarter – January through March, second quarter – April through June, third quarter – July through September, fourth quarter – October through December ). Form 941 is generally due by the last day of the calendar month following the end of the quarter. For model, you ‘re required to file Form 941 by April 30 for wages you pay during the first quarter, January through March .
If the due date for filing a return falls on a Saturday, Sunday, or legal vacation, you may file the return on the following business day. The term legal vacation means any legal vacation in the District of Columbia. For a list of legal holidays, see Chapter 11 of Publication 15, ( Circular E ), Employer ‘s Tax Guide .
Some employers with small payrolls, including government employers, may file an annual return, Form 944 alternatively of Form 941 each quarter, if you are eligible and by rights so argue on your Form SS-4, Application for an Employer Identification Number. Form 944 is designed for employers with an annual employment tax liability of $1,000 or less. form 944 generally is due on January 31 of the following year. The function of Form 944 is to reduce burden on little employers by allowing them to file one hark back per year, and in most cases pay the employment tax with the rejoinder.
Employers may be eligible to file Form 944 if their estimated annual employment tax liability is $ 1,000 or less. If an employer ‘s use tax liability is expected to be $ 1,000 or less and the employer wants to file Form 944, and did not indicate this on the Form SS-4, the employer must contact the IRS to request to file Form 944. Employers are n’t permitted to file Form 944 unless they are notified by the IRS to do then. Employers required to file Form 944, who want to file Forms 941 alternatively, must notify the IRS to request to file quarterly Forms 941 and pick up approval to do so. See the Instructions for Form 944 for more information .
Employers notified to file Form 944, whose businesses grow during the year and whose employment tax liability exceeds the $ 1,000 threshold, must still file Form 944 for the year. Employers who exceed the eligibility threshold must not file Form 941 until the IRS notifies them that their file necessity has been changed to Form 941. For data on requesting to file Forms 941 quarterly or form 944 annually to report your social security, Medicare, and withheld federal income taxes, refer to the Instructions for Form 944 PDF and the Instructions for Form 941 PDF .
generally, employers are required to deposit their employment taxes preferably than pay the taxes when the Form 941 or Form 944 is filed. For the rules for making deposits, refer to Publication 15 and Topic No. 757. If you ‘ve deposited all of your taxes on time, you have ten extra days after the ascribable date of the hark back to file.
Adjustments and Corrections – In certain cases, you must adjust amounts reported as social security and Medicare taxes to arrive at your discipline tax indebtedness. For model, the sum social security and Medicare taxes on Form 941 or Form 944 may differ by a small sum from the sum on your payroll records due to fractions of cents that you gained or lost by rounding each time you computed payroll for each individual employee. You may add or subtract this difference on the line for fractions-of-cents adjustments. You may besides use an adaptation wrinkle to report the social security and Medicare taxes you were unable to collect on employees ‘ tips, or for brainsick pay wages for which social security and Medicare taxes were withheld by a one-third party that is not your agentive role, such as an insurance company. If you wish to correct an error on a previously filed Form 941 or Form 944, use Form 941-X, Adjusted Employer ‘s QUARTERLY Federal Tax Return or Claim for Refund or Form 944-X, Adjusted Employer ‘s ANNUAL Federal Tax Return or Claim for Refund, respectively .
Calculating the Taxes – The federal income tax withhold and sociable security and Medicare taxes are added in concert on Form 941 and Form 944. The result net tax after credits and adjustments is the come of use taxes you owe for the quarter ( Form 941 ) or the year ( Form 944 ). If this come is $ 2,500 or more, complete the tax indebtedness for each calendar month in Part 2 of Form 941 and Form 944, if you ‘re a monthly schedule depositor. If you file Form 941 and are a semiweekly depositor, then report your tax liability on Schedule B ( Form 941 ), Report of Tax Liability for Semiweekly Schedule Depositors. If you file Form 944 and are a semiweekly depositor, then report your tax liability on Form 945-A, Annual Record of Federal Tax Liability. The purpose of Part 2 of Form 941, Part 2 of Form 944, Schedule B ( Form 941 ), and Form 945-A ( if filing Form 944 ) is to show the tax liability for that payday. The IRS uses this data to determine if you deposited your employment taxes on time .
Deposit Schedules – For monthly depositors, you must show the aggregate amount of social security, Medicare and withheld federal income taxes owed for each month in Part 2 of Form 941 or Part 2 of Form 944. For semiweekly depositors, you must show the aggregate total of sociable security system, Medicare and withheld union income taxes owed for each day on schedule B ( Form 941 ) or Form 945-A ( if filing Form 944 ). You become liable for employment taxes when you pay the employees their wages, not when the yield period ends. For exemplar, if your pay period ends September 24 but you do n’t pay the employees until October 1, their wages would be reported in the one-fourth stern when you actually paid the employees their wages and became liable for the tax, not the third base quarter when the give period ended.
Read more: A step-by-step guide to identity theft
Penalties – It ‘s very significant that you complete part 2 of Form 941 or Form 944, Schedule B ( Form 941 ), or Form 945-A ( if filing Form 944 ) correctly, or it may appear that you did n’t deposit your taxes when due. There ‘s a late deposit penalty ranging from 2 % to 15 % depending on the duration of time the deposit is recently .
by and large, unless you ‘re eligible to pay taxes with your return, you should have deposited your taxes and should n’t have a balance ascribable with Form 941 and Form 944. If you pay taxes with your tax return that should have been deposited, you may be subject to a penalty. See Topic No. 757 and Publication 15 for rules on deposits and payment of tax with your return. Be certain to sign and date Form 941 or Form 944 before mailing .
See Publication 15, ( Circular E ), Employer ‘s Tax Guide for more information on filing requirements for Form 941 and Form 944 .