IRS Form 941
If you own a business and pay wages to employees, then one of the things you want to get right is the IRS form 941. This is the form used to report the Social Security tax, income tax, and Medicare tax you withhold from your employees’ paychecks. If you don’t file you will be facing penalties and a whole lot of headaches from the IRS.
IRS Form 941 is called the “Employer’s Quarterly Federal Tax Return”. Employers fill it out four times a year and submit to the IRS, along with payment if applicable. The payments made will be attributed to each of the employees’ federal tax accounts. At the end of the tax year, you as the employer will report these payments to each employee on the W-2 form.
If you withhold federal taxes from your employees’ paychecks and don’t submit IRS form 941 then you are stealing money. It’s that simple. Filing IRS Form 941 is the law, so it’s important to fully understand the requirements for filing. Many employers hire a tax accountant to do this for them, or use a payroll service. However, once you understand IRS Form 941 you can do it yourself.