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

employer remains liable if the third party fails to perform a

Exceptions

required action.

Special rules apply to some employers.

•

Where can you get telephone help? You can call the IRS

Seasonal employers do not have to file a Form 941 for

Business and Specialty Tax Line toll free at 1-800-829-4933,

quarters in which they have no tax liability because they

Monday through Friday from 7 a.m. to 10 p.m. local time

have paid no wages. To tell the IRS that you will not file a

(Alaska and Hawaii follow Pacific time) for answers to your

return for one or more quarters during the year, check the

questions about completing Form 941, tax deposit rules, or

box on line 19 every quarter you file Form 941. See section

obtaining an employer identification number (EIN).

12 of Pub. 15 (Circular E) for more information.

•

Employers of household employees do not usually file

Photographs of missing children. The Internal Revenue

Form 941. See Pub. 926, Household Employer’s Tax Guide,

Service is a proud partner with the National Center for

and Schedule H (Form 1040), Household Employment

Missing and Exploited Children. Photographs of missing

Taxes, for more information.

children selected by the Center may appear in instructions

•

Employers of farm employees do not usually file Form

on pages that would otherwise be blank. You can help bring

941. See Form 943, Employer’s Annual Federal Tax Return

these children home by looking at the photographs and

for Agricultural Employees, and Pub. 51 (Circular A),

calling 1-800-THE-LOST (1-800-843-5678) if you recognize

Agricultural Employer’s Tax Guide.

a child.

If none of the above exceptions applies and you

General Instructions:

have not filed a final return, you must file Form 941

TIP

each quarter even if you did not pay wages during

the quarter. Use IRS e-file, if possible.

Purpose of Form 941

What if you reorganize or close your

These instructions give you some background information

business?

about Form 941. They tell you who must file Form 941, how

to complete it line by line, and when and where to file it.

If you sell or transfer your business . . .

If you want more in-depth information about payroll tax

If you sell or transfer your business, you and the new owner

topics relating to Form 941, see Pub. 15 (Circular E),

must each file a Form 941 for the quarter in which the

Employer’s Tax Guide, or visit the IRS website at

transfer occurred. Report only the wages you paid.

and click on the Employment Taxes

When two businesses merge, the continuing firm must file

link.

a return for the quarter in which the change took place and

Federal law requires you, as an employer, to withhold

the other firm should file a final return.

taxes from your employees’ paychecks. Each time you pay

Changing from one form of business to another — such as

wages, you must withhold – or take out of your employees’

from a sole proprietorship to a partnership or

paychecks – certain amounts for federal income tax, social

corporation — is considered a transfer. If a transfer occurs,

security tax, and Medicare tax. Under the withholding

you may need a new EIN. See section 1 of Pub. 15 (Circular

system, taxes withheld from your employees are credited to

E). Attach a statement to your return with:

your employees in payment of their tax liabilities.

•

The new owner’s name (or the new name of the

Federal law also requires you to pay any liability for the

business);

employer’s portion of social security and Medicare taxes.

•

Whether the business is now a sole proprietorship,

This portion of social security and Medicare taxes is not

partnership, or corporation;

withheld from employees.

•

The kind of change that occurred (a sale or transfer);

•

Who Must File Form 941?

The date of the change; and

•

The name of the person keeping the payroll records and

the address where those records will be kept.

Use Form 941 to report the following amounts.

•

Wages you have paid.

If your business has closed . . .

•

Tips your employees have received.

•

Federal income tax you withheld.

If you go out of business or stop paying wages to your

•

Both the employer’s and the employee’s share of social

employees, you must file a final return. To tell the IRS that

security and Medicare taxes.

Form 941 for a particular quarter is your final return, check

•

Current quarter’s adjustments to social security and

the box on line 18 and enter the date you last paid wages.

Medicare taxes for fractions of cents, sick pay, tips, and

Also attach a statement to your return showing the name of

group-term life insurance.

the person keeping the payroll records and the address

•

Advance earned income credit (EIC) payments.

where those records will be kept.

•

Credit for COBRA premium assistance payments.

See the Instructions for Forms W-2, Wage and Tax

•

Exemption for qualified employer’s share of social security

Statement, and W-3, Transmittal of Wage and Tax

tax on wages/tips paid to qualified employees.

Statements, for information about earlier dates for the

Do not use the Form 941 to report backup withholding or

expedited furnishing and filing of Forms W-2 when a final

income tax withholding on nonpayroll payments such as

Form 941 is filed.

pensions, annuities, and gambling winnings. Report these

If you participated in a statutory merger or consolidation,

types of withholding on Form 945, Annual Return of

or qualify for predecessor-successor status due to an

Withheld Federal Income Tax.

acquisition, you should generally file Schedule D (Form

After you file your first Form 941, you must file a return

941), Report of Discrepancies Caused by Acquisitions,

for each quarter, even if you have no taxes to report, unless

Statutory Mergers, or Consolidations. See the Instructions

you filed a final return or one of the exceptions listed below

for Schedule D (Form 941) to determine whether you should

applies.

file Schedule D (Form 941) and when you should file it.

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Instructions For Form 941 - Employer'S Quarterly Federal Tax Return - 2010 Page 3

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