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

11. Total Deposits for This Quarter

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

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

Enter your deposits for this quarter, including any

of Pub. 15.

overpayment from a prior quarter. Also include in the amount

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

shown any overpayment that you applied from filing Form

Enter adjustments for fractions of cents (due to rounding)

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

relating to the employee share of social security and

quarter.

Medicare taxes withheld. The employee share of amounts

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

12. Balance Due

amounts actually withheld from employees' pay due to the

If line 10 is more than line 11, enter the difference on line 12.

rounding of social security and Medicare taxes based on

Otherwise, see Overpayment, later.

statutory rates.

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

Never make an entry on both lines 12 and 13.

adjustment for the employee share of social security and

You don't have to pay if line 12 is under $1. Generally,

Medicare taxes that were withheld and deposited by your

you should have a balance due only if your total taxes

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

(line 10) for the current quarter or preceding quarter are less

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

than $2,500, and you didn't incur a $100,000 next-day

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

deposit obligation during the current quarter. However, see

are the third-party sick pay payer, enter the adjustment for

section 11 of Pub. 15 for information about payments made

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

under the accuracy of deposits rule.

employer.

9. Current quarter's adjustments for tips and

If you were required to make federal tax deposits, pay the

group-term life insurance. Enter adjustments for:

amount shown on line 12 by EFT. If you weren't required to

Any uncollected employee share of social security and

make federal tax deposits, you may pay the amount shown

Medicare taxes on tips, and

on line 12 by EFT, credit card, debit card, check, money

The uncollected employee share of social security and

order, or EFW. For more information on electronic payment

Medicare taxes on group-term life insurance premiums paid

options, visit the IRS website at

for former employees.

If you pay by EFT, credit card, or debit card, file your

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

return using the Without a payment address under Where

adjustment reported on a previously filed Form 941,

Should You File, earlier, and don't file Form 941-V, Payment

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

Voucher.

return or claim for refund and is filed separately from Form

941. See section 13 of Pub. 15.

If you pay by check or money order, make it payable to the

“United States Treasury.” Enter your EIN, Form 941, and the

10. Total Taxes After Adjustments

tax period on your check or money order. Complete Form

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

941-V and enclose with Form 941.

result on line 10.

If line 10 is $2,500 or more and you have deposited all

If line 10 is less than $2,500 or line 10 on the

taxes when due, the balance due on line 12 should be zero,

preceding quarterly return was less than $2,500, and

unless you have reduced your deposits in anticipation of

you didn't incur a $100,000 next-day deposit obligation

filing a Form 941-X to claim COBRA premium assistance

during the current quarter. You may pay the amount with

credits. See Depositing Your Taxes, earlier.

Form 941 or you may deposit the amount. To avoid a

If you are required to make deposits and instead pay

penalty, you must pay the amount in full with a timely filed

the taxes with Form 941, you may be subject to a

return or you must deposit the amount timely. For more

penalty. See Must You Deposit Your Taxes, earlier.

information on paying with a timely filed return, see the

CAUTION

instructions for line 12 below.

What if you can't pay in full? If you can't pay the full

If line 10 is $2,500 or more and line 10 on the

amount of tax you owe, you can apply for an installment

preceding quarterly return was $2,500 or more, or if you

agreement online. You can apply for an installment

incurred a $100,000 next-day deposit obligation during

agreement online if:

the current quarter. You must make deposits according to

You can't pay the full amount shown on line 12,

your deposit schedule. The amount shown on line 10 must

The total amount you owe is $25,000 or less, and

equal the “Total liability for quarter” shown on line 14 or the

You can pay the liability in full in 24 months.

“Total liability for the quarter” shown on Schedule B (Form

To apply using the Online Payment Agreement

941).

Application, go to IRS.gov, click on Tools, then click on

For more information and rules about federal tax deposits,

Online Payment Agreement.

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

Under an installment agreement, you can pay what you

15.

owe in monthly installments. There are certain conditions you

must meet to enter into and maintain an installment

If you are a semiweekly depositor, you must

agreement, such as paying the liability within 24 months, and

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

making all required deposits and timely filing tax returns

complete and submit Schedule B (Form 941), the

CAUTION

during the length of the agreement.

IRS may assert deposit penalties based on available

information.

If your installment agreement is accepted, you will be

charged a fee and you will be subject to penalties and

interest on the amount of tax not paid by the due date of the

return.

-8-

Instructions for Form 941 (Rev. 1-2016)

Instructions For Form 941 - Employer'S Quarterly Federal Tax Return - 2016 Page 8

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