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

Instructions for Form 941

Department of the Treasury

Internal Revenue Service

(Rev. October 2010)

Employer’s QUARTERLY Federal Tax Return

Employers can choose to file Forms 941 instead of

Section references are to the Internal Revenue Code unless

Form 944 for 2010. Beginning with tax year 2010,

otherwise noted.

employers that would otherwise be required to file Form 944

can notify the IRS if they want to file quarterly Forms 941

What’s New

instead of annual Form 944. See Revenue Procedure

2009-51 2009-45 I.R.B. 625, available at

Electronic deposit requirement. The IRS has issued

proposed regulations under section 6302 which provide that

Correcting a previously filed Form 941. If you discover

beginning January 1, 2011, you must deposit all depository

an error on a previously filed Form 941, make the correction

taxes (such as employment tax, excise tax, and corporate

using Form 941-X, Adjusted Employer’s QUARTERLY

income tax) electronically using the Electronic Federal Tax

Federal Tax Return or Claim for Refund. Form 941-X is filed

Payment System (EFTPS). Under these proposed

separately from Form 941. For more information, see

regulations, which are expected to be finalized by December

section 13 of Pub. 15 (Circular E) or visit IRS.gov and enter

31, 2010, Forms 8109 and 8109-B, Federal Tax Deposit

the keywords Correcting Employment Taxes.

Coupon, cannot be used after December 31, 2010. For

Paid preparers must sign Form 941. Paid preparers must

more information about EFTPS or to enroll in EFTPS, visit

complete and sign the paid preparer’s section of Form 941.

the EFTPS website at

or call

Electronic filing and payment. Now, more than ever

1-800-555-4477. You can also get Pub. 966, The Secure

before, businesses can enjoy the benefits of filing and

Way to Pay Your Federal Taxes.

paying their federal taxes electronically. Whether you rely on

Advance payment of earned income credit (EIC). The

a tax professional or handle your own taxes, the IRS offers

option of receiving advance payroll payments of EIC expires

you convenient programs to make filing and paying easier.

on December 31, 2010. Individuals eligible for EIC in 2011

Spend less time and worry on taxes and more time running

can still claim the credit when they file their federal income

your business. Use e-file and the Electronic Federal Tax

tax return. Individuals who received advance payments of

Payment System (EFTPS) to your benefit.

•

EIC in 2010 must file a 2010 federal income tax return.

For e-file, visit

for additional information.

•

For EFTPS, visit

or call EFTPS Customer

Qualified employer’s social security tax exemption.

Service at 1-800-555-4477, 1-800-733-4829 (TDD), or

Qualified employers are allowed an exemption for their

1-800-244-4829 (Spanish).

share (6.2%) of social security tax on wages/tips paid to

qualified employees after March 31, 2010, and before

For an EFTPS deposit to be on time, you must

January 1, 2011. See the instructions for lines 6a through 6d

initiate the transaction at least 1 business day before

on page 6.

the date the deposit is due.

CAUTION

Aggregate Form 941 filers. Agents must complete

Same-day payment option. If you fail to initiate a

Schedule R (Form 941), Allocation Schedule for Aggregate

deposit transaction on EFTPS by 8 p.m. Eastern time the

Form 941 Filers, when filing an aggregate Form 941.

day before the date a deposit is due, you can still make your

Aggregate Forms 941 are filed by agents approved by the

deposit on time by using the Federal Tax Application (FTA).

IRS under section 3504 of the Internal Revenue Code. To

If you ever need the same-day payment method, you will

request approval to act as an agent for an employer, the

need to make arrangements with your financial institution

agent files Form 2678, Employer/Payer Appointment of

ahead of time. Please check with your financial institution

Agent, with the IRS.

regarding availability, deadlines, and costs. Your financial

institution may charge you a fee for payments made this

COBRA premium assistance credit extended. The credit

way. To learn more about the information you will need to

for COBRA premium assistance payments has been

provide your financial institution to make a same-day wire

extended. It now applies to premiums paid for employees

payment, visit

to download the Same-Day

involuntarily terminated between September 1, 2008, and

Payment Worksheet.

May 31, 2010, and to premiums paid for up to 15 months.

Electronic funds withdrawal (EFW). If you file Form

See COBRA premium assistance payments on page 7.

941 electronically, you can e-file and e-pay (electronic funds

Social security wage base for 2010 and 2011. Do not

withdrawal) the balance due in a single step using tax

withhold or pay social security tax after an employee

preparation software or through a tax professional.

reaches $106,800 in social security wages for the year.

However, do not use EFW to make federal tax deposits. For

There is no limit on the amount of wages subject to

more information on paying your taxes using EFW, visit the

Medicare tax.

IRS website at A fee may be charged to

file electronically.

Reminders

Credit or debit card payments. Employers can pay the

balance due shown on Form 941 by credit or debit card. Do

not use a credit or debit card to make federal tax deposits.

Qualified employer’s social security tax credit. Qualified

For more information on paying your taxes with a credit or

employers are allowed a credit in the second quarter of

debit card, visit the IRS website at

2010 for their share (6.2%) of social security tax on wages/

tips paid to qualified employees after March 18, 2010, and

Employer’s liability. Employers are responsible to ensure

before April 1, 2010. See the instructions for lines 12c

that tax returns are filed and deposits and payments are

through 12e on page 8.

made, even if the employer contracts with a third party. The

Cat. No. 14625L

Instructions For Form 941 - Employer'S Quarterly Federal Tax Return - 2010 Page 2

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