How to Use Form 941-V for Employer Tax Payments

Employers who submit payroll taxes to the IRS may need to include Form 941-V, a payment voucher for check or money order payments. This form ensures payments are correctly applied to the employer’s quarterly tax return, reducing processing delays or misallocation.

Using Form 941-V correctly helps businesses avoid penalties and maintain accurate tax records.

When to Use the Payment Voucher

Employers should use Form 941-V when submitting a quarterly payroll tax payment by check or money order. This applies if the total tax liability for the quarter is less than $2,500 or if the employer is filing Form 941 on time and is not required to use the Electronic Federal Tax Payment System (EFTPS). Businesses with tax liabilities exceeding $2,500 must generally use EFTPS instead of mailing a payment voucher.

Employers filing an amended return (Form 941-X) to correct an underpayment from a previous quarter can also use Form 941-V. This ensures the IRS credits the payment to the correct tax period, preventing penalties or interest from misapplied funds.

Seasonal employers who do not file Form 941 every quarter may need to use the payment voucher when submitting payroll taxes. Businesses filing a final return when closing operations can also use Form 941-V to settle any remaining payroll tax balance.

Required Details

Form 941-V requires specific information to ensure payments are credited correctly. Employers must print their name and address as recorded with the IRS to avoid processing issues. The Employer Identification Number (EIN) must be accurate, as an incorrect or missing EIN can prevent the IRS from linking the payment to the employer’s tax account, possibly resulting in late payment penalties.

The tax period must be specified to ensure the payment is applied correctly. Since Form 941 is filed quarterly, employers must indicate whether the payment corresponds to the first (January–March), second (April–June), third (July–September), or fourth (October–December) quarter. Incorrectly designating the tax period can result in funds being applied to the wrong quarter, triggering IRS notices.

The payment amount must match the liability reported on Form 941. If the IRS receives a payment that does not align, the employer may receive an adjustment notice or an inquiry. Checks or money orders should be made payable to the “United States Treasury” and include both the EIN and tax period on the payment to assist with proper allocation.

Completing the Payment Voucher

Using the most recent version of Form 941-V ensures accuracy, as outdated forms may contain incorrect formatting or instructions. The latest version is available on the IRS website.

The payment amount should be entered clearly in the designated box, using only numbers without commas or dollar signs. If completing the form by hand, black or blue ink ensures readability when scanned. Employers using accounting software should verify that the printed voucher meets IRS specifications. Some tax software programs automatically generate Form 941-V, reducing the risk of manual errors.

Once completed, the payment voucher should be detached from Form 941 along the perforated line. The IRS prefers that the voucher be submitted separately from the main return. Attaching it with staples or paperclips can interfere with automated processing. Placing the voucher on top of the check or money order inside the envelope helps ensure proper matching. The IRS advises against excessive folding, as creases can cause scanning issues.

Payment Submission and Deadlines

Timely payroll tax payments help employers avoid penalties and interest charges. Employers paying by check or money order must mail their payment to the correct IRS processing center based on their business location. The IRS periodically updates mailing addresses, so verifying the correct destination on the latest Form 941 instructions is recommended. Payments sent to an outdated address may be delayed, potentially resulting in late fees.

To establish proof of timely payment, employers should use a trackable mailing service, such as certified mail with return receipt or a private delivery service recognized by the IRS, such as FedEx or UPS. Under IRS regulations, payments postmarked by the due date are considered timely, even if received later. However, using standard mail without proof of mailing could create disputes if the IRS does not receive the payment on time.

Common Mistakes

Errors in completing or submitting Form 941-V can cause processing delays, misapplied payments, or penalties. A common mistake is failing to include the correct Employer Identification Number (EIN) on both the voucher and the check or money order. If the EIN is missing or incorrect, the IRS may not be able to match the payment to the employer’s tax account, potentially resulting in an underpayment notice.

Another issue is failing to specify the correct tax period, which can lead to funds being applied to the wrong quarter. This may result in unnecessary IRS correspondence and penalties if the agency believes a required payment is missing.

Miscalculations in the payment amount can also create problems. If the amount on the voucher does not match the liability reported on Form 941, the IRS may issue a discrepancy notice requiring clarification. Employers should double-check their calculations to ensure accuracy.

Submitting a handwritten check with illegible or incomplete details can cause processing errors. Writing “United States Treasury” incorrectly or failing to sign the check can result in the payment being returned, potentially leading to late fees. Businesses should also avoid sending cash payments, as the IRS does not accept them and will return any such submissions.

Recordkeeping Requirements

Employers should keep copies of all submitted vouchers, canceled checks, and IRS payment confirmations for at least four years, as required under IRS guidelines. These documents serve as proof of payment in case of discrepancies or IRS inquiries. If an employer receives a notice claiming a missing or late payment, having a record of the voucher and corresponding bank transaction can help resolve the issue quickly.

Employers using payroll service providers should ensure that tax payment records are accessible. Even if a third party handles payroll tax filings, the business owner remains legally responsible for ensuring payments are made on time. Reviewing IRS account transcripts periodically can help confirm that all payments have been applied correctly. Businesses should also store digital copies of payment records in secure locations to prevent loss due to physical damage or misplacement.