Department of the Treasury
Instructions for Form 941
Internal Revenue Service
(Rev. January 2006)
Employer’s QUARTERLY Federal Tax Return
Section references are to the Internal Revenue Code unless otherwise indicated.
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.
Photographs of missing children. The Internal Revenue
Proc. 2005-39 on page 82 of Internal Revenue Bulletin
Service is a proud partner with the National Center for
Missing and Exploited Children. Photographs of missing
Annual employment tax filing for small employers. For
children selected by the Center may appear in instructions
calendar year 2006, certain small employers will be qualified
on pages that would otherwise be blank. You can help bring
to file Form 944, Employer’s ANNUAL Federal Tax Return,
these children home by looking at the photographs and
rather than Form 941, Employer’s QUARTERLY Federal
calling 1-800-THE-LOST (1-800-843-5678) if you recognize
Tax Return, to report their employment taxes. The IRS will
notify those who will qualify to file the form beginning in
February 2006. For more information, get the Instructions for
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
Social security wage base for 2006. Do not withhold
about Form 941, Employer’s QUARTERLY Federal Tax
social security tax after an employee reaches $94,200 in
Return. They tell you who must file the form, how to fill it out
social security wages. (There is no limit on the amount of
line by line, and when and where to file it.
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),
Employer’s Tax Guide, or visit the IRS website at
and type “Employment Tax” in the Search box.
Correcting Form 941. If you discover an error on a
Federal law requires you, as an employer, to withhold
previously filed Form 941, make the correction using Form
taxes from your employees’ paychecks. Each time you pay
941 for the quarter in which you discovered the error and
wages, you must withhold – or take out of your employees’
attach Form 941c, Supporting Statement to Correct
paychecks – certain amounts for federal income tax, social
Information. For example, in March 2006, you discover that
security tax, and Medicare tax. Under the withholding
you underreported $10,000 in social security and Medicare
system, taxes withheld from your employees are credited to
wages on your fourth quarter 2005 Form 941. Correct the
your employees in payment of their tax liabilities.
error by showing $1,530 (15.3% × $10,000) on line 7e of
Federal law also requires employers to pay any liability
your 2006 first quarter Form 941 and attaching a completed
for the employer’s portion of social security and Medicare
Form 941c. Be sure to include the $1,530 in any required
taxes. This portion of social security and Medicare taxes is
not withheld from employees.
Electronic filing and payment. Now, more than ever
before, businesses can enjoy the benefits of filing and
Use Form 941 to report:
paying their federal taxes electronically. Whether you rely on
payroll taxes (withheld federal income tax and both
employee and employer shares of social security and
a tax professional or handle your own taxes, IRS offers you
Medicare taxes) for the quarter;
convenient programs to make filing and paying easier.
current quarter’s adjustments to social security and
Spend less time and worry on taxes and more time running
Medicare taxes for fractions of cents, sick pay, tips, and
your business. Use e-file and Electronic Federal Tax
group-term life insurance; and
Payment System (EFTPS) to your benefit.
For e-file, visit for additional information.
prior quarters’ adjustments to payroll taxes (attach Form
For EFTPS, visit or call EFTPS Customer
Service at 1-800-555-4477, 1-800-733-4829 (TDD), or
Do not use the Form 941 to report backup withholding or
income tax withholding on nonpayroll payments such as
pensions, annuities, and gambling winnings. Report these
941TeleFile discontinued. You are no longer able to file
types of withholding on Form 945, Annual Return of
your employment tax return by telephone using 941TeleFile.
Withheld Federal Income Tax.
The IRS encourages you to file your Form 941 using other
convenient and easy IRS e-file options. Please visit us at
Who Must File Form 941?
and click on the e-file logo located in the
lower-left corner. File your “Zero Wage” Forms 941 using
IRS e-file, if possible. See also When Must You File? on
If you are an employer, you must file a quarterly Form 941 to
Cat. No. 14625L