Instructions For Form 941 - Employer'S Quarterly Federal Tax Return (Page 4 of 9) in pdf

office where you file your returns (using the Without a payment

For more information, see section 12 of Pub. 15

address on page 4) or call the IRS at 1-800-829-4933.

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

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

Depositing Your Taxes:

to the IRS website at and click on the Apply for an

When Must You Deposit Your Taxes?

Employer Identification Number (EIN) Online link. You may also

apply for an EIN by calling 1-800-829-4933, or you can fax or

mail Form SS-4 to the IRS. If you have applied for an EIN but

Determine if you are a monthly or semiweekly

do not have your EIN by the time a return is due, write “Applied

schedule depositor for the quarter.

For” and the date you applied in the space shown for the

number.

The IRS uses two different sets of deposit rules to determine

when businesses must deposit their social security, Medicare,

Always be sure the EIN on the form you file exactly

and withheld federal income taxes. These schedules tell you

TIP

matches the EIN the IRS assigned to your business. Do

when a deposit is due after you have a payday.

not use your social security number on forms that ask

Your deposit schedule is not determined by how often you

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

pay your employees. Your deposit schedule depends on the

another business’s EIN may result in penalties and delays in

total tax liability you reported on Form 941 during the previous

processing your return.

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

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

calendar year through June 30 of last year). See section 11 of

immediately if you change your business name or address.

Pub. 15 (Circular E) for details. If you filed Form 944 in either

•

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

2008 or 2009, your lookback period is the 2008 calendar year.

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

Before the beginning of each calendar year, determine which

name change. Get Pub. 1635, Understanding Your Employer

type of deposit schedule you must use. If you reported:

Identification Number (EIN), to see if you need to apply for a

•

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

new EIN.

•

a monthly schedule depositor.

Complete and mail Form 8822, Change of Address, for any

•

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

address change.

a semiweekly schedule depositor.

Check the Box for the Quarter

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

Under “Report for this Quarter of 2010” at the top of Form 941,

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

check the appropriate box of the quarter for which you are filing.

on any day during the deposit period.

Make sure the quarter checked is the same as shown on any

attached Schedule B (Form 941), Report of Tax Liability for

How Must You Deposit Your Taxes?

Semiweekly Schedule Depositors.

You may have to deposit the federal income taxes you withheld

Completing and Filing Form 941

and both the employer and employee social security taxes and

Make entries on Form 941 as follows to enable accurate

Medicare taxes. If your total taxes after adjustment for advance

scanning and processing.

•

EIC (line 10) are:

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

•

Less than $2,500 for the current quarter or the preceding

typing or using a computer to fill out your form.

•

quarter, and you did not incur a $100,000 next-day deposit

Omit dollar signs and decimal points. Commas are optional.

obligation during the current quarter. You do not have to

Report dollars to the left of the preprinted decimal point and

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

cents to the right of it.

•

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

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

timely. However, if your taxes for the preceding quarter were

value of zero.

•

less than $2,500, you are unsure whether you will incur a

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

$100,000 next-day deposit obligation in the current quarter, and

Otherwise, use parentheses.

•

you are unsure your taxes will be less than $2,500 in the

Enter your name and EIN on all pages and attachments.

current quarter, deposit your taxes using the appropriate rules

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

(above) to avoid failure to deposit penalties.

enter their name and EIN on page 2.

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$2,500 or more for the current quarter and the preceding

Staple multiple sheets in the upper left corner when filing.

quarter. You must deposit your taxes by using EFTPS or by

Other Forms You Must Use

depositing them at a financial institution that is authorized to

accept federal tax deposits (that is, authorized depository) with

To notify employees about the earned income credit (EIC), you

Form 8109, Federal Tax Deposit Coupon. See section 11 of

must give the employees one of the following:

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Pub. 15 (Circular E).

The IRS Form W-2, which has the required information about

You may reduce your deposits during the quarter by the

the EIC on the back of Copy B.

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amount of:

A substitute Form W-2 with the same EIC information on the

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COBRA premium assistance payments on line 12a,

back of the employee’s copy that is on Copy B of the IRS Form

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Employer’s exempt social security tax on line 6d, and

W-2.

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Employer’s exempt social security tax on line12e.

Notice 797, Possible Federal Tax Refund Due to the Earned

Income Credit (EIC).

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

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Your written statement with the same wording as Notice 797.

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employers to make their tax deposits. Using EFTPS

Each eligible employee who wishes to receive any advance

helps eliminate errors commonly made on federal tax

earned income credit payments must give you a completed

deposit (FTD) coupons. Some taxpayers are required to use

Form W-5, Earned Income Credit Advance Payment Certificate.

EFTPS to deposit their taxes. See section 11 of

For more information, see section 10 of Pub. 15 (Circular E)

Pub. 15 (Circular E) for details.

and Pub. 596, Earned Income Credit (EIC).

What About Penalties and Interest?

Reconciling Forms 941 and Form W-3

The IRS matches amounts reported on your four quarterly

Avoiding penalties and interest

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

W-3. If the amounts do not agree, you may be contacted by the

You can avoid paying penalties and interest if you do all of the

IRS or the Social Security Administration (SSA). The following

following:

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amounts are reconciled.

Deposit or pay your taxes when they are due, using EFTPS if

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Federal income tax withholding.

required.

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Social security wages.

File your fully completed Form 941 on time.

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Social security tips.

Report your tax liability accurately.

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Medicare wages and tips.

Submit valid checks for tax payments.

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Advance EIC payments.

Furnish accurate Forms W-2 to employees.

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

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