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

Instructions for Form 941

Department of the Treasury

Internal Revenue Service

(Rev. January 2016)

Employer's QUARTERLY Federal Tax Return

Section references are to the Internal Revenue Code unless

imposed on the employee. There is no employer share of

otherwise noted.

Additional Medicare Tax. All wages that are subject to

Medicare tax are subject to Additional Medicare Tax

Future Developments

withholding if paid in excess of the $200,000 withholding

threshold.

For the latest information about developments related to

Form 941 and its instructions, such as legislation enacted

For more information on what wages are subject to

after they were published, go to

Medicare tax, see the chart, Special Rules for Various Types

of Services and Payments, in section 15 of Pub. 15,

What's New

Employer's Tax Guide. For more information on Additional

Medicare Tax, visit IRS.gov and enter “Additional Medicare

Social security and Medicare tax for 2016. The social

Tax” in the search box.

security tax rate is 6.2% each for the employee and

employer, unchanged from 2015. The social security wage

Aggregate Form 941 filers. Agents must complete

base limit is $118,500.

Schedule R (Form 941), Allocation Schedule for Aggregate

The Medicare tax rate is 1.45% each for the employee

Form 941 Filers, when filing an aggregate Form 941.

and employer, unchanged from 2015. There is no wage base

Aggregate Forms 941 are filed by agents approved by the

IRS under section 3504. To request approval to act as an

limit for Medicare tax.

agent for an employer, the agent files Form 2678 with the

Social security and Medicare taxes apply to the wages of

IRS.

household workers you pay $2,000 or more in cash or an

equivalent form of compensation in 2016. Social security and

Correcting a previously filed Form 941. If you discover

Medicare taxes apply to election workers who are paid

an error on a previously filed Form 941, make the correction

$1,700 or more in cash or an equivalent form of

using Form 941-X. Form 941-X is filed separately from Form

compensation in 2016.

941. For more information, see the Instructions for Form

941-X, section 13 of Pub. 15, or visit IRS.gov and enter

Work opportunity tax credit for qualified tax-exempt or-

“correcting employment taxes” in the search box.

ganizations hiring qualified veterans extended. The

Employers can choose to file Forms 941 instead of

work opportunity tax credit is now available for eligible

Form 944. Employers that would otherwise be required to

unemployed veterans who begin work after December 31,

file Form 944, Employer's ANNUAL Federal Tax Return, can

2014, and before January 1, 2020. Qualified tax-exempt

notify the IRS if they want to file quarterly Forms 941 instead

organizations that hire eligible unemployed veterans can

of annual Form 944. To request to file quarterly Forms 941 to

claim the work opportunity tax credit against their payroll tax

report your social security and Medicare taxes for the 2016

liability using Form 5884-C. For more information, visit

calendar year, you must either call the IRS at

IRS.gov and enter “work opportunity tax credit” in the search

1-800-829-4933 between January 1, 2016, and April 1, 2016,

box.

or send a written request postmarked between January 1,

Reminders

2016, and March 15, 2016. After you contact the IRS, the IRS

will send you a written notice that your filing requirement has

COBRA premium assistance credit. Effective for tax

been changed to Forms 941. You must receive written notice

periods beginning after December 31, 2013, the credit for

from the IRS to file Forms 941 instead of Form 944 before

COBRA premium assistance payments can't be claimed on

you may file these forms. If you don't receive this notice, you

Form 941. Instead, after filing your Form 941, file Form

must file Form 944 for calendar year 2016. See Rev. Proc.

941-X, Adjusted Employer's QUARTERLY Federal Tax

2009-51, 2009-45 I.R.B. 625, available at

Return or Claim for Refund, to claim the COBRA premium

2009-45_IRB/ar12.html.

assistance credit. Filing a Form 941-X before filing a Form

Requesting to file Form 944 instead of Forms 941. If you

941 for the quarter may result in errors or delays in

are required to file Forms 941 but believe your employment

processing your Form 941-X. For more information, visit

taxes for the calendar year will be $1,000 or less, you may

IRS.gov and enter “COBRA” in the search box.

request to file Form 944 instead of Forms 941 by calling the

If you are entitled to claim the COBRA premium

IRS at 1-800-829-4933 between January 1, 2016, and April

assistance credit, but aren't otherwise required to file

1, 2016, or sending a written request postmarked between

TIP

Form 941, file a Form 941 with -0- entered on line 12

January 1, 2016, and March 15, 2016. After you contact the

before filing a Form 941-X to claim the credit.

IRS, the IRS will send you a written notice that your filing

requirement has been changed to Form 944. You must

Additional Medicare Tax withholding. In addition to

receive written notice from the IRS to file Form 944 instead of

withholding Medicare tax at 1.45%, you must withhold a

Forms 941 before you may file this form. If you don't receive

0.9% Additional Medicare Tax from wages you pay to an

this notice, you must file Forms 941 for calendar year 2016.

employee in excess of $200,000 in a calendar year. You are

See Rev. Proc. 2009-51, 2009-45 I.R.B. 625, available at

required to begin withholding Additional Medicare Tax in the

2009-45_IRB/ar12.html.

pay period in which you pay wages in excess of $200,000 to

an employee and continue to withhold it each pay period until

Federal tax deposits must be made by electronic funds

the end of the calendar year. Additional Medicare Tax is only

transfer (EFT). You must use EFT to make all federal tax

Feb 01, 2016

Cat. No. 14625L

Instructions For Form 941 - Employer'S Quarterly Federal Tax Return - 2016

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