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

tips to the employer. An employer isn't liable for the employer

The uncollected employee share of social security and

share of the social security and Medicare taxes on

Medicare taxes on group-term life insurance premiums paid

unreported tips until notice and demand for the taxes is made

for former employees.

to the employer by the IRS in a Section 3121(q) Notice and

Prior quarter's adjustments. If you need to correct any

Demand. The tax due may have been determined from tips

adjustment reported on a previously filed Form 941,

reported to the IRS on employees' Forms 4137, Social

complete and file Form 941-X. Form 941-X is an adjusted

Security and Medicare Tax on Unreported Tip Income, or

return or claim for refund and is filed separately from Form

other tips that weren't reported to their employer as

941. See section 13 of Pub. 15.

determined by the IRS during an examination. For additional

information, see Rev. Rul. 2012-18, 2012-26 I.R.B. 1032,

10. Total Taxes After Adjustments

available at IRS.gov/irb/2012-26_IRB/ar07.html.

Combine the amounts shown on lines 6–9 and enter the

Deposit the tax within the time period required under your

result on line 10.

deposit schedule to avoid any possible deposit penalty. The

11. Qualified Small Business Payroll Tax Credit

tax is treated as accumulated by the employer on the “Date

of Notice and Demand” as printed on the Section 3121(q)

for Increasing Research Activities

Notice and Demand. The employer must include this amount

Enter the amount of the credit from Form 8974, line 12.

on the appropriate line of the record of federal tax liability

If you enter an amount on line 11, you must attach

(Part 2 of Form 941 for a monthly schedule depositor or

Form 8974.

Schedule B (Form 941) for a semiweekly schedule

depositor).

CAUTION

12. Total Taxes After Adjustments and Credits

6. Total Taxes Before Adjustments

Subtract line 11 from line 10 and enter the result on line 12.

Add the total federal income tax withheld from wages, tips,

and other compensation (line 3), the total social security and

If line 12 is less than $2,500 or line 12 on the prior

Medicare taxes before adjustments (line 5e), and any tax due

quarterly return (total taxes reported on line 10 if the

under a Section 3121(q) Notice and Demand (line 5f). Enter

prior quarter was the fourth quarter of 2016) was less

the result on line 6.

than $2,500, and you didn't incur a $100,000 nextday

deposit obligation during the current quarter. You may

7–9. Tax Adjustments

pay the amount with Form 941 or you may deposit the

Enter tax amounts on lines 7–9 that result from current

amount. To avoid a penalty, you must pay the amount in full

quarter adjustments. Use a minus sign (if possible) to show

with a timely filed return or you must deposit the amount

an adjustment that decreases the total taxes shown on line 6

timely. For more information on paying with a timely filed

instead of parentheses. Doing so enhances the accuracy of

return, see the instructions for line 14 below.

our scanning software. For example, enter “-10.59” instead of

If line 12 is $2,500 or more and line 12 on the prior

“(10.59).” However, if your software only allows for

quarterly return (total taxes reported on line 10 if the

parentheses in entering negative amounts, you may use

prior quarter was the fourth quarter of 2016) was $2,500

them.

or more, or if you incurred a $100,000 nextday deposit

obligation during the current quarter. You must make

Current quarter's adjustments. In certain cases, you must

deposits according to your deposit schedule. The amount

adjust the amounts you entered as social security and

shown on line 12 must equal the “Total liability for quarter”

Medicare taxes in column 2 of lines 5a–5d to figure your

shown on line 16 or the “Total liability for the quarter” shown

correct tax liability for this quarter's Form 941. See section 13

on Schedule B (Form 941).

of Pub. 15.

7. Current quarter's adjustment for fractions of cents.

For more information and rules about federal tax deposits,

Enter adjustments for fractions of cents (due to rounding)

see Depositing Your Taxes, earlier, and section 11 of Pub.

relating to the employee share of social security and

15.

Medicare taxes withheld. The employee share of amounts

If you’re a semiweekly depositor, you must complete

shown in column 2 of lines 5a–5d may differ slightly from

Schedule B (Form 941). If you fail to complete and

amounts actually withheld from employees' pay due to the

submit Schedule B (Form 941), the IRS may assert

rounding of social security and Medicare taxes based on

CAUTION

deposit penalties based on available information.

statutory rates.

8. Current quarter's adjustment for sick pay. Enter the

13. Total Deposits for This Quarter

adjustment for the employee share of social security and

Medicare taxes that were withheld and deposited by your

Enter your deposits for this quarter, including any

third-party sick pay payer with regard to sick pay paid by the

overpayment from a prior quarter. Also include in the amount

third-party. These wages should be included on line 5a,

shown any overpayment that you applied from filing Form

line 5c, and, if the withholding threshold is met, line 5d. If

941-X, 941-X (PR), 944-X, or 944-X (SP), in the current

you’re the third-party sick pay payer, enter the adjustment for

quarter.

any employer share of these taxes required to be paid by the

14. Balance Due

employer.

9. Current quarter's adjustments for tips and

If line 12 is more than line 13, enter the difference on line 14.

group-term life insurance. Enter adjustments for:

Otherwise, see Overpayment, later.

Any uncollected employee share of social security and

Never make an entry on both lines 14 and 15.

Medicare taxes on tips, and

You don't have to pay if line 14 is under $1. Generally,

you should have a balance due only if your total taxes after

Instructions for Form 941 (Rev. 12017)

Instructions For Form 941 - Employer'S Quarterly Federal Tax Return - 2017 Page 8

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