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

What About Penalties and Interest?

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

Forms W-2 electronically. For details, call the SSA at

TIP

1-800-772-6270 or visit SSA's Employer W-2 Filing

Avoiding Penalties and Interest

Instructions & Information website at

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

employer.

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 are 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 amounts that must be withheld aren't withheld or

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

aren't deposited or paid to the United States

tips, taxable fringe benefits, and supplemental

Treasury, the trust fund recovery penalty may apply.

unemployment compensation benefits. Don't include any

CAUTION

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

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

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

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

immediately collected from the employer or business.

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

you were required to withhold on golden parachute payments

(section 4999).

The trust fund recovery penalty may be imposed on all

persons who are determined by the IRS to be responsible for

If you are a third-party payer of sick pay, enter the federal

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

income tax you withheld (or were required to withhold) on

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

third-party sick pay here.

section 11 of Pub. 15.

4. If No Wages, Tips, and Other Compensation

Adjustment of Tax on Tips

are Subject to Social Security or Medicare

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

Tax . . .

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

If no wages, tips, and other compensation on line 2 are

funds available to withhold the employee's share of social

subject to social security or Medicare tax, check the box on

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

line 4. If this question doesn't apply to you, leave the box

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

blank. For more information about exempt wages, see

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

section 15 of Pub. 15 and section 4 of

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

Pub. 15-A, Employer's Supplemental Tax Guide.

wages and tips subject to Additional Medicare Tax

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

If you are a government employer, wages you pay

uncollected employee share of the social security and

aren't automatically exempt from social security and

Medicare taxes.

Medicare taxes. Your employees may be covered by

CAUTION

law or by a voluntary Section 218 Agreement with the SSA.

For more information, see Pub. 963, Federal-State

Specific Instructions:

Reference Guide.

Part 1:Answer These Questions for

5a–5e. Taxable Social Security and Medicare

This Quarter

Wages and Tips

5a. Taxable social security wages. Enter the total

1. Number of Employees Who Received Wages,

wages, sick pay, and taxable fringe benefits subject to social

Tips, or Other Compensation This Quarter

security taxes you paid to your employees during the quarter.

Enter the number of employees on your payroll for the pay

For this purpose, sick pay includes payments made by an

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

insurance company to your employees for which you

December 12, for the quarter indicated at the top of

received timely notice from the insurance company. See

section 6 in Pub. 15-A for more information about sick pay

Form 941. Don't include:

reporting.

Household employees,

Employees in nonpay status for the pay period,

Enter the amount before deductions. Don't include tips on

Farm employees,

this line. For information on types of wages subject to social

Pensioners, or

security taxes, see section 5 of Pub. 15.

Active members of the Armed Forces.

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Instructions for Form 941 (Rev. 1-2016)

Instructions For Form 941 - Employer'S Quarterly Federal Tax Return - 2016 Page 6

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