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

Department of the Treasury

Instructions for Form 941

Internal Revenue Service

(Rev. January 2002)

Employer’s Quarterly Federal Tax Return

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

the business); whether the business is now a sole

Changes To Note

proprietorship, partnership, or corporation; kind of change

(sale or transfer); and date of change.

Social security wage base for 2002. Stop withholding

social security tax after an employee reaches $84,900 in

When two businesses merge, the continuing firm must

taxable wages.

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

Third party designee. You can now allow an employee

other firm should file a final return.

or paid preparer to resolve certain tax issues with the

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

IRS. See Third Party Designee on page 4 of the

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

instructions.

return box and enter the date final wages were paid

above line 1. See the Instructions for Forms W-2 and

General Instructions

W-3 for information on the earlier dates for the expedited

furnishing and filing of Form W-2 when a final Form 941

is filed.

Purpose of Form

Preparing the Form

Use Form 941 to report:

The following will allow the IRS to process Form 941

•

Income tax you withheld from wages, including tips,

faster and more accurately:

•

supplemental unemployment compensation benefits, and

Make dollar entries without the dollar sign and comma

third-party payments of sick pay.

(0000.00).

•

Enter negative amounts in parentheses.

•

Social security and Medicare taxes.

•

File the Form 941 that has your preprinted name and

Who Must File

address.

Employers who withhold income tax on wages, or who

When To File

must pay social security or Medicare tax, must file Form

File starting with the first quarter in which you are

941 each calendar quarter. After you file the first Form

required to withhold income tax or pay wages subject to

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

social security and Medicare taxes.

have no taxes to report (but see the seasonal

employers and final return information below). If you

Quarter

Ending

Due Date

filed Form 941 on magnetic tape or by electronic or

TeleFile methods, do not also file a paper Form 941. For

Jan.-Feb.-Mar.

March 31

April 30

information about filing Form 941 electronically, see

Apr.-May-June

June 30

July 31

Circular E.

July-Aug.-Sept.

Sept. 30

Oct. 31

Oct.-Nov.-Dec.

Dec. 31

Jan. 31

Seasonal employers are not required to file for

quarters when they regularly have no tax liability because

If you made deposits on time in full payment of the

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

taxes for a quarter, you have 10 more days after the

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

above due date to file. Your return will be considered

the year, check the Seasonal employers box above line

timely filed if it is properly addressed and mailed

1 on Form 941 for each quarter. See section 12 of

First-Class or sent by an IRS designated delivery service

Circular E for more information.

on or before the due date. See Circular E for more

Exception. Employers of the following categories of

information on IRS designated delivery services. If the

workers do not usually file Form 941.

due date for filing a return falls on a Saturday, Sunday, or

Household employees. See Pub. 926, Household

legal holiday, you may file the return on the next business

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

day.

Household Employment Taxes.

Where To File

Farm employees. See Form 943, Employer’s Annual

Tax Return for Agricultural Employees, and Circular A,

See the back of Form 941 for the mailing address for

Agricultural Employer’s Tax Guide (Pub. 51).

your return.

Business reorganization or termination. If you sell or

Depositing Taxes

transfer your business, you and the new owner must

each file a return for the quarter in which the transfer

If your net taxes (line 13) are $2,500 or more for the

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

quarter, you must deposit your tax liabilities at an

change from one form of business to another, such as

authorized financial institution with Form 8109, Federal

from sole proprietorship to partnership or corporation, is

Tax Deposit Coupon, or by using the Electronic Federal

considered a transfer and requires a new employer

Tax Payment System (EFTPS). You may pay the taxes

identification number (EIN). See section 1 of Circular E. If

with Form 941 instead of depositing if your total taxes for

a change occurs, please attach a statement to your

the quarter (line 13) are less than $2,500 and you pay in

return that shows: new owner’s name (or new name of

full with a timely filed return. See section 11 of Circular E

Cat. No. 14625L

Instructions For Form 941 - Employer'S Quarterly Federal Tax Return - 2002 Page 4

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