Department of the Treasury
Instructions for Form 941
Internal Revenue Service
(Rev. October 2006)
For use with Form 941 (Rev. January 2006)
Employer’s QUARTERLY Federal Tax Return
Section references are to the Internal Revenue Code unless
convenient programs to make filing and paying easier.
Spend less time and worry on taxes and more time running
your business. Use e-file and Electronic Federal Tax
Payment System (EFTPS) to your benefit.
For e-file, visit for additional information.
For EFTPS, visit or call EFTPS Customer
Service at 1-800-555-4477, 1-800-733-4829 (TDD), or
Change to filing addresses. We changed the addresses
where you should mail Form 941. See Where Should You
File? on page 4.
941TeleFile discontinued. You are no longer able to file
your employment tax return by telephone using 941TeleFile.
Change to reporting negative amounts. When reporting a
negative amount as a tax adjustment on line 7, use a
The IRS encourages you to file your Form 941 using other
“minus” sign instead of parentheses. Doing so enhances the
convenient and easy IRS e-file options. Please visit us at
accuracy of our scanning software. For example, report
and click on the e-file logo located in the
“-10.59” instead of “(10.59).” However, if your software only
lower-left corner. File your “Zero Wage” Forms 941 using
allows for parentheses in reporting negative amounts, you
IRS e-file, if possible. See also When Must You File? on
may use them.
Where can you get telephone help? You can call the IRS
toll free at 1-800-829-4933 on Monday through Friday from
7 a.m. to 10 p.m. local time (Alaska and Hawaii follow
Alternative signature method. Effective with returns filed
Pacific time) to order tax deposit coupons (Form 8109) and
after June 2005, corporate officers or duly authorized agents
for answers to your questions about completing Form 941,
may sign Form 941 by rubber stamp, mechanical device, or
tax deposit rules, or obtaining an employer identification
computer software program. For details and required
documentation, see Rev. Proc. 2005-39. You can find Rev.
Proc. 2005-39 on page 82 of Internal Revenue Bulletin
Photographs of missing children. The Internal Revenue
2005-28 at /pub/irs-irbs/irb05-28.pdf.
Service is a proud partner with the National Center for
Missing and Exploited Children. Photographs of missing
Annual employment tax filing for small employers.
children selected by the Center may appear in instructions
Certain small employers will be qualified to file Form 944,
on pages that would otherwise be blank. You can help bring
Employer’s ANNUAL Federal Tax Return, rather than Form
these children home by looking at the photographs and
941, Employer’s QUARTERLY Federal Tax Return, to report
calling 1-800-THE-LOST (1-800-843-5678) if you recognize
their employment taxes. The IRS will notify those employers
who will qualify to file Form 944 in February of each year.
For more information, get the Instructions for Form 944.
Credit card payments. Beginning in 2006, employers can
Understanding Form 941
pay the balance due shown on Form 941 by credit card.
However, do not use a credit card to make federal tax
deposits. For more information on paying your taxes with a
Purpose of Form 941
credit card, visit the IRS website at and type
“e-pay” in the Search box.
These instructions give you some background information
about Form 941, Employer’s QUARTERLY Federal Tax
Social security wage base for 2006. Do not withhold
Return. They tell you who must file the form, how to fill it out
social security tax after an employee reaches $94,200 in
line by line, and when and where to file it.
social security wages. (There is no limit on the amount of
wages subject to Medicare tax.)
If you want more in-depth information about payroll tax
topics relating to Form 941, see Pub. 15 (Circular E),
Correcting Form 941. If you discover an error on a
Employer’s Tax Guide, or visit the IRS website at
previously filed Form 941, make the correction using Form
gov and type “Employment Tax” in the Search box.
941 for the quarter in which you discovered the error and
attach Form 941c, Supporting Statement to Correct
Federal law requires you, as an employer, to withhold
Information. For example, in March 2006, you discover that
taxes from your employees’ paychecks. Each time you pay
you underreported $10,000 in social security and Medicare
wages, you must withhold – or take out of your employees’
wages on your fourth quarter 2005 Form 941. Correct the
error by showing $1,530 (15.3% × $10,000) on line 7e of
paychecks – certain amounts for federal income tax, social
security tax, and Medicare tax. Under the withholding
your 2006 first quarter Form 941 and attaching a completed
system, taxes withheld from your employees are credited to
Form 941c. Be sure to include the $1,530 in any required
your employees in payment of their tax liabilities.
Electronic filing and payment. Now, more than ever
Federal law also requires employers to pay any liability
before, businesses can enjoy the benefits of filing and
for the employer’s portion of social security and Medicare
paying their federal taxes electronically. Whether you rely on
taxes. This portion of social security and Medicare taxes is
a tax professional or handle your own taxes, IRS offers you
not withheld from employees.
Cat. No. 14625L