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

Employer identification number (EIN). To make sure

amounts do not agree, you may be contacted by the IRS or

businesses comply with federal tax laws, the IRS monitors

the Social Security Administration (SSA). The following

tax filings and payments by using a numerical system to

amounts are reconciled.

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identify taxpayers. A unique 9-digit employer identification

Federal income tax withholding.

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number (EIN) is assigned to all corporations, partnerships,

Social security wages.

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and some sole proprietors. Businesses needing an EIN

Social security tips.

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must apply for a number and use it throughout the life of the

Medicare wages and tips.

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business on all tax returns, payments, and reports.

Advance earned income credit (EIC) payments.

Your business should have only one EIN. If you have

For more information, see section 12 of Pub. 15

more than one and are not sure which one to use, write to

(Circular E) and the Instructions for Schedule D (Form 941).

the IRS office where you file your returns (using the Without

a payment address on page 4) or call the IRS at

Depositing Your Taxes:

1-800-829-4933.

When Must You Deposit Your Taxes?

If you do not have an EIN, you may apply for one online.

Go to the IRS website at and click on the More

Online Tools link, then the Online Employer Identification

Determine if you are a monthly or

Number (EIN) link. You may also apply for an EIN by calling

semiweekly schedule depositor for the

1-800-829-4933, or you can fax or mail Form SS-4 to the

IRS. If you have applied for an EIN but do not have your EIN

quarter.

by the time a return is due, write “Applied For” and the date

The IRS uses two different sets of deposit rules to determine

you applied in the space shown for the number.

when businesses must deposit their social security,

Always be sure the EIN on the form you file exactly

Medicare, and withheld federal income taxes. These

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matches the EIN the IRS assigned to your business.

schedules tell you when a deposit is due after you have a

Do not use your social security number on forms that

payday.

ask for an EIN. Filing a Form 941 with an incorrect EIN or

Your deposit schedule is not determined by how often

using another business’s EIN may result in penalties and

you pay your employees. Your deposit schedule depends on

delays in processing your return.

the total tax liability you reported on Form 941 during the

If you change your name or address... Notify the IRS

previous four-quarter lookback period (July 1 of the second

immediately if you change your business name or address.

preceding calendar year through June 30 of last year). See

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Write to the IRS office where you file your returns (using

section 11 of Pub. 15 (Circular E) for details.

the Without a payment address on page 4) to notify the IRS

Before the beginning of each calendar year, determine

of any name change. Get Pub. 1635, Understanding Your

which type of deposit schedule you must use. If you

EIN, to see if you need to apply for a new EIN.

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reported:

Complete and mail Form 8822, Change of Address, for

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$50,000 or less in taxes during the lookback period, you

any address change.

are a monthly schedule depositor. Check the appropriate

Check the Box for the Quarter

box on line 15 and, if your tax liability for the quarter was

$2,500 or more, fill out the tax liability for each month in the

Under “Report for this Quarter of 2008” at the top of

quarter.

Form 941, check the appropriate box of the quarter for

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more than $50,000 of taxes for the lookback period, you

which you are filing. Make sure the quarter checked is the

are a semiweekly schedule depositor. Check the

same as shown on any attached Schedule B (Form 941),

appropriate box on line 15 and, if your tax liability for the

Report of Tax Liability for Semiweekly Schedule Depositors.

quarter was $2,500 or more, fill out Schedule B (Form 941)

Completing and Filing Form 941

and attach it to Form 941 when you submit it.

Make entries on Form 941 as follows to enable accurate

See section 11 of Pub. 15 (Circular E) for the Next

scanning and processing.

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Day Deposit Rule on taxes of $100,000 or more

Use 12-point Courier font (if possible) for all entries if you

accumulated on any day during the deposit period.

are typing or using a computer to fill out your form.

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Omit dollar signs and decimal points. Commas are

How Must You Deposit Your Taxes?

optional. Report dollars to the left of the preprinted decimal

point and cents to the right of it.

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Leave blank any data field (except lines 1, 2, and 10) with

You may have to deposit the federal income taxes you

a value of zero.

withheld and both the employer and employee social

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Enter negative amounts using a minus sign (if possible).

security taxes and Medicare taxes. If your total taxes after

Otherwise, use parentheses.

adjustment for advance EIC (line 10) are:

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Enter your name and EIN on all pages and attachments.

Less than $2,500 for the quarter. You do not have to

Filers using the IRS-preaddressed Form 941 do not have to

make a deposit. To avoid a penalty, you must pay the

enter their name and EIN on page 2.

amount in full with a timely filed return or you must deposit

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Staple multiple sheets in the upper left corner when filing.

the amount timely. However, if you are unsure that your

taxes will be less than $2,500 for the quarter, deposit your

Other Forms That You Must Use

taxes using the appropriate rules (above) to avoid failure to

Give each eligible employee Notice 797, Possible Federal

deposit penalties.

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Tax Refund Due to the Earned Income Credit (EIC). Then

$2,500 or more for the quarter. You must deposit your

each eligible employee who wishes to receive any advance

taxes by using EFTPS or by depositing them at a financial

earned income credit (EIC) payments must give you a

institution that is authorized to accept federal tax deposits

completed Form W-5, Earned Income Credit Advance

(that is, authorized depository) with Form 8109, Federal Tax

Payment Certificate. For more information, see section 10 of

Deposit Coupon. See section 11 of Pub. 15 (Circular E).

Pub. 15 (Circular E) and also Pub. 596, Earned Income

EFTPS is an easy, safe, and convenient way for all

Credit.

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employers to make their tax deposits. Using EFTPS

Reconciling Forms 941 and Form W-3

helps eliminate errors commonly made on federal tax

The IRS matches amounts reported on your four quarterly

deposit (FTD) coupons. Some taxpayers are required to

Forms 941 with Form W-2 amounts totaled on your yearly

use EFTPS to deposit their taxes. See section 11 of

Form W-3, Transmittal of Wage and Tax Statements. If the

Pub. 15 (Circular E) for details.

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Instructions For Form 941 - Employer'S Quarterly Federal Tax Return - 2008 Page 4

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