What is Form 941 and Why Must You File It?

If you own a small business, you get a small mountain of paperwork every year. You are probably familiar with income tax returns and filing requirements onerous. But when one employee, you have a much more complicated tax situation. There are several payroll related tax forms that need to be logged. One of them is the form of 941, and the purpose of this article is to provide you with the purpose of this form and its introduction of IRS-mandated registration rules.

Form 941 Employer's QUARTERLY Federal Tax right back. Note that the IRS has graciously emphasized the word "quarterly", so that's a good start. The purpose of the Form 941 is the federal payroll for each quarterly report, ie, the 3-month period to 31 March, 30 June, 30 September and 31 December. In general, the form with the IRS until the end of the month must be filed after the end of the quarter, ie the maturity dates are the 30th April, 31 July, 31 October and 31 January.

Specifically, the purpose of the 941-form on the following billing information for the Federal Government are paid each quarter: Report 1) wages and other compensation to employees, 2) Federal income tax deductions from your employees' paychecks, 3) Social security tax and Medicare tax withheld from your employees' paychecks, 4) Social Security tax and Medicare tax that must be paid by the employer; 5) Federal income tax payments made by the employer for the quarter and 6) Any remaining balance of the quarterly payroll tax liability.

Mentioned above after adding up all federal payroll taxes, the taxes paid by the employer payroll tax to be deducted in order to determine whether a refund or balance due. So there are three possible end results: 1) An employer must pay the exact amount of liability, and there is no refund or balance due, 2) An employer must pay more than the liability and have a refund and 3) The employer are paid less than the liability and has a balance.

If you are entitled to a refund, you can click on the IRS inquiry, we'll send a check or you can authorize the IRS to keep the refund and is subject to payroll next quarter's tax liability. If you have a balance, you should make a payment with the return of mandate, even enclosing payment voucher Form 941-V.

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