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

Alternatively, to prevent triggering a system-generated

trust fund recovery penalty may be imposed on all persons

balance due notice, the employer can make its deposits

who are determined by the IRS to be responsible for

without a reduction in anticipation of the COBRA premium

collecting, accounting for, or paying over these taxes, and

assistance credit and follow the ordinary procedures for filing

who acted willfully in not doing so. For more information, see

a claim for refund or adjusted return using Form 941-X.

section 11 of Pub. 15.

When Must You Deposit Your Taxes?

Adjustment of Tax on Tips

Determine if You’re a Monthly or Semiweekly

Schedule Depositor for the Quarter

If, by the 10th of the month after the month you received an

employee's report on tips, you don't have enough employee

The IRS uses two different sets of deposit rules to determine

funds available to withhold the employee's share of social

when businesses must deposit their social security,

security and Medicare taxes, you no longer have to collect it.

Medicare, and withheld federal income taxes. These

Report the entire amount of these tips on line 5b (Taxable

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

social security tips), line 5c (Taxable Medicare wages and

payday.

tips), and, if the withholding threshold is met, line 5d (Taxable

wages and tips subject to Additional Medicare Tax

Your deposit schedule isn't determined by how often you

withholding). Include as an adjustment on line 9 the total

pay your employees. Your deposit schedule depends on the

uncollected employee share of the social security and

total tax liability you reported on Form 941 during the

Medicare taxes.

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

preceding calendar year through June 30 of the preceding

Specific Instructions:

calendar year). See section 11 of Pub. 15 for details. If you

filed Form 944 in either 2015 or 2016, your lookback period is

Part 1: Answer These Questions for

the 2015 calendar year.

This Quarter

Before the beginning of each calendar year, determine

which type of deposit schedule you must use.

1. Number of Employees Who Received Wages,

If you reported $50,000 or less in taxes during the

lookback period, you’re a monthly schedule depositor.

Tips, or Other Compensation This Quarter

If you reported more than $50,000 of taxes during the

Enter the number of employees on your payroll for the pay

lookback period, you’re a semiweekly schedule depositor.

period including March 12, June 12, September 12, or

December 12, for the quarter indicated at the top of

If you’re a monthly schedule depositor and

Form 941. Don't include:

accumulate a $100,000 tax liability on any day during

Household employees,

the deposit period, you become a semiweekly

CAUTION

schedule depositor on the next day and remain so for at least

Employees in nonpay status for the pay period,

the rest of the calendar year and for the following calendar

Farm employees,

year. See $100,000 Next-Day Deposit Rule in section 11 of

Pensioners, or

Pub. 15 for more information.

Active members of the Armed Forces.

If you enter “250” or more on line 1, you must file

What About Penalties and Interest?

Forms W-2 electronically. For details, visit the SSA's

TIP

Employer W-2 Filing Instructions & Information

Avoiding Penalties and Interest

website at

SSA.gov/employer

or call the SSA at

1-800-772-6270.

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

the following.

Deposit or pay your taxes when they are due.

2. Wages, Tips, and Other Compensation

File your fully completed Form 941 on time.

Enter amounts on line 2 that would also be included in box 1

Report your tax liability accurately.

of your employees' Forms W-2. Include sick pay paid by a

Submit valid checks for tax payments.

third party if you were given timely notice of the payments

Furnish accurate Forms W-2 to employees.

and the third party transferred liability for the employer's

File Form W-3 and Copy A of Forms W-2 with the SSA on

taxes to you. See the General Instructions for Forms W-2 and

time and accurately.

W-3 for details.

Penalties and interest are charged on taxes paid late and

If you’re a third-party payer of sick pay, don't include sick

returns filed late at a rate set by law. See sections 11 and 12

pay that you paid to policyholders' employees here if you

of Pub. 15 for details.

gave the policyholders timely notice of the payments.

Use Form 843 to request abatement of assessed

3. Federal Income Tax Withheld From Wages,

penalties or interest. Don't request abatement of assessed

Tips, and Other Compensation

penalties or interest on Form 941 or Form 941-X.

Enter the federal income tax you withheld (or were required

If federal income, social security, and Medicare taxes

to withhold) from your employees on this quarter's wages,

(that is, trust fund taxes) that must be withheld aren't

tips, taxable fringe benefits, and supplemental

withheld or aren't deposited or paid to the United

CAUTION

unemployment compensation benefits. Don't include any

States Treasury, the trust fund recovery penalty may apply.

income tax withheld by a third-party payer of sick pay even if

The penalty is the full amount of the unpaid trust fund tax.

you reported it on Forms W-2. You will reconcile this

This penalty may apply to you if these unpaid taxes can't be

difference on Form W-3. Also include here any excise taxes

immediately collected from the employer or business. The

Instructions for Form 941 (Rev. 12017)

Instructions For Form 941 - Employer'S Quarterly Federal Tax Return - 2017 Page 6

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