Instructions For Form 941 - Employer'S Quarterly Federal Tax Return

Department of the Treasury

Instructions for Form 941

Internal Revenue Service

(Rev. January 2004)

Employer’s Quarterly Federal Tax Return

Section references are to the Internal Revenue Code unless otherwise noted.

filed Form 941 by electronic or TeleFile methods, do not

Items To Note

also file a paper Form 941. For information about filing

Form 941 electronically, visit the IRS website at

Electronic filing option. File Form 941 electronically

and receive proof of filing acknowledgement. Electronic

payment options may also be available. Visit the IRS

Seasonal employers are not required to file for

website at for details.

quarters when they regularly have no tax liability because

they have paid no wages. To alert the IRS that you will

Enhanced Third-Party Designee authority. The

not have to file a return for one or more quarters during

authority given to a representative when a filer completes

the year, check the Seasonal employers box on line B

the Third-Party Designee section of Form 941 has been

of Form 941 for each quarter. See section 12 of

enhanced and is now revocable. Third-party designees

Circular E (Pub. 15), Employer’s Tax Guide, for more

will now be able to exchange information with the IRS

information.

concerning Form 941. They may also request and

receive written tax information relating to Form 941,

Note: Employers of the following categories of workers

including copies of specific notices, correspondence, and

do not usually file Form 941.

account transcripts. The named third-party designee may

•

Household employees. See Pub. 926, Household

now be any individual, corporation, firm, organization, or

Employer’s Tax Guide, and Schedule H (Form 1040),

partnership. As a result, the enhanced Third-Party

Household Employment Taxes.

Designee authorization will be substantially equivalent to

•

Farm employees. See Form 943, Employer’s Annual

Form 8821, Tax Information Authorization. See

Federal Tax Return for Agricultural Employees, and

Third-Party Designee on page 4 for details.

Circular A (Pub. 51), Agricultural Employer’s Tax Guide.

Revision to line 2 instructions. Filers should now use

amounts that would be entered in box 1 of Form W-2,

Business reorganization or termination. If you sell or

Wage and Tax Statement, when entering wages, tips,

transfer your business, you and the new owner must

and other compensation on line 2 of Form 941. See Line

each file a return for the quarter in which the transfer

2— Total Wages and Tips, Plus Other Compensation

occurred. Each should report only the wages it paid. A

on page 3 for details.

change from one form of business to another, such as

from sole proprietorship to partnership or corporation, is

Social security wage base for 2004. Stop withholding

considered a transfer and requires a new EIN. See

social security tax after an employee reaches $87,900 in

section 1 of Circular E (Pub. 15). If a change occurs,

taxable wages during 2004. (There is no limit on the

please attach a statement to your return that shows: new

amount of wages subject to Medicare tax.)

owner’s name (or new name of the business); whether

Zero Wage return. Beginning in April of 2004, all

the business is now a sole proprietorship, partnership, or

U.S.-based (domestic) taxpayers may file their “Zero

corporation; kind of change (sale or transfer); and date of

Wage” Forms 941 by telephone using the 941TeleFile

change. When two businesses merge, the continuing firm

system. Eligible filers must have had: (a) no withholding,

must file the return for the quarter the change took place.

(b) no federal tax deposits, and (c) no taxes to report for

The other firm should file a final return.

the quarter. Dial 1-800-583-5345 (toll free) to use

941TeleFile.

Final return. If you go out of business or stop paying

wages, file a final return. Be sure to check the final

General Instructions

return box on line A and enter the date final wages were

paid in the area at the right. See the Instructions for

Forms W-2 and W-3 for information on the earlier dates

Purpose of Form

for the expedited furnishing and filing of Form W-2 when

a final Form 941 is filed.

Use Form 941 to report income tax that you withheld

from wages (including tips), distributions from

Preparing the Form

nonqualified pension plans (including nongovernmental

The following will allow the IRS to process Form 941

section 457(b) plans), supplemental unemployment

faster and more accurately:

•

compensation benefits, and third-party payments of sick

Make dollar entries without the dollar sign and comma

pay. Also use Form 941 to report social security and

(0000.00).

•

Medicare taxes.

Enter negative amounts in parentheses.

•

File the Form 941 that has your preprinted name and

Telephone Help

address.

You can call the IRS toll free at 1-800-829-4933 to order

FTD coupons (Form 8109) and for answers to your

When To File

questions about completing Form 941, tax deposit rules,

File starting with the first quarter in which you are

or obtaining an employer identification number (EIN).

required to withhold income tax or pay wages subject to

Who Must File

social security and Medicare taxes.

Employers who withhold income tax on wages, or who

Quarter

Ending

Due Date

must pay social security or Medicare tax, must file Form

941 each calendar quarter. After you file your first Form

Jan.-Feb.-Mar.

March 31

April 30

941, you must file a return for each quarter, even if you

Apr.-May-June

June 30

July 31

have no taxes to report (but see the seasonal

July-Aug.-Sept.

Sept. 30

Oct. 31

employers and final return information below). If you

Oct.-Nov.-Dec.

Dec. 31

Jan. 31

Cat. No. 14625L

Instructions For Form 941 - Employer'S Quarterly Federal Tax Return - 2004

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