Quarterly 941 Form: How to Fill Out and File

Form 941, the Employer’s QUARTERLY Federal Tax Return, is a document used by businesses to report payroll taxes to the Internal Revenue Service (IRS). The form details federal income taxes withheld from employee wages, as well as the employee and employer shares of Social Security and Medicare taxes (FICA). This form reconciles the taxes withheld and the employer’s tax obligations with payments made for the three-month period.

Determining Your Filing Requirement

Any business that pays wages to an employee must file Form 941 each quarter if it withholds federal income, Social Security, or Medicare tax. The filing obligation continues even for quarters where you have no employees or paid no wages, until you have formally closed your business with the IRS.

There are specific exceptions. Businesses with an annual employment tax liability of $1,000 or less may receive permission from the IRS to file Form 944 annually instead. Employers of household workers report these taxes on Schedule H with their personal Form 1040 tax return. Employers of agricultural workers must file Form 943 annually. Seasonal employers who do not pay wages during certain quarters may not need to file for those inactive periods.

Gathering Necessary Payroll Information

Before filling out Form 941, compile all necessary payroll data for the quarter. You will need your Employer Identification Number (EIN), legal business name, and address, which must match IRS records. The form also requires the total count of employees who were paid wages during the quarter.

You must gather precise financial figures from your payroll records. This includes the total gross wages, tips, and other compensation paid to all employees. You will also need the exact amount of federal income tax withheld and the calculation of taxable Social Security and Medicare wages for the quarter.

For Social Security tax, you must know the total wages subject to the tax, keeping in mind the annual wage base limit of $176,100 for 2025. You will also need the total tips subject to Social Security tax. The form requires separate calculations for Medicare tax, which does not have a wage base limit. If any employees earn over $200,000, you must also report the Additional Medicare Tax withheld. Have records of any tax deposits you have already made for the quarter to determine if you have a balance due or an overpayment.

Completing the Form 941 Line by Line

After assembling your payroll data, you can complete the form. At the top of the form, check the box for the specific quarter you are filing.

Part 1: The Main Calculations

Part 1 of the form calculates your total tax liability for the quarter. Line 1 requires the number of employees you paid during the quarter. Line 2 is for the total wages, tips, and other compensation paid. Line 3 is for the total federal income tax withheld from all employees’ pay.

Lines 5a through 5d are for calculating Social Security and Medicare taxes. You will multiply taxable Social Security wages by the 12.4% rate on Line 5a and do a similar calculation for tips on Line 5b. On Line 5c, multiply all taxable Medicare wages and tips by 2.9%. Line 5d is for any Additional Medicare Tax withheld, and the sum of these taxes is entered on Line 5e. After adjustments, Line 12 will show your total tax liability.

Part 2: Tax Deposit Schedule

In Part 2, you must inform the IRS of your tax deposit schedule, which is determined by your tax liability during a four-quarter lookback period. If you reported $50,000 or less in taxes during this period, you are a monthly schedule depositor. Monthly depositors complete the boxes showing tax liability for each of the three months in the quarter.

If your tax liability during the lookback period was more than $50,000, you are a semiweekly schedule depositor. Semiweekly depositors must complete and attach Schedule B (Form 941), which details the tax liability for each payday. You must correctly identify your depositor status to avoid penalties for incorrect or late deposits.

Part 3: Business Information

Part 3 asks about your business operations during the quarter. You will indicate if your business has closed or if you are a seasonal employer who will not be filing a return for every quarter. This section is also where you report information for certain tax credits, though many lines for past relief are reserved for future use.

Filing Procedures and Payment of Taxes

Once Form 941 is completed, you must file it and pay any outstanding taxes. The filing deadlines are tied to the end of each calendar quarter. If a deadline falls on a weekend or legal holiday, the filing is due on the next business day.

• First quarter: April 30
• Second quarter: July 31
• Third quarter: October 31
• Fourth quarter: January 31

You can mail the paper Form 941 to the address specified in the form’s instructions, which varies by location and whether a payment is included. The IRS encourages filing the form electronically using an authorized e-file provider.

Paying the taxes reported on Form 941 is a separate action from filing. Nearly all employers must make tax deposits electronically using the Electronic Federal Tax Payment System (EFTPS). Payments are made according to your determined deposit schedule. If you have a balance due of less than $2,500 when you file, you may pay it with the return, but deposits must still be made via EFTPS.

Making Corrections with Form 941-X

If you discover an error on a Form 941 that has already been filed, use Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund. This form is used to amend a previously submitted quarterly return and cannot be filed with your regular Form 941.

Common reasons for filing Form 941-X include correcting wages, tips, or other compensation, as well as fixing underreported or overreported taxes. You must file a separate Form 941-X for each quarter that needs correction, indicating the year and quarter being amended. The form requires you to show the originally reported figures, the corrected figures, and the difference, plus a detailed explanation.

You generally have three years from the date you filed the original Form 941 or two years from the date you paid the tax, whichever is later, to file Form 941-X to claim a refund. To correct underreported taxes, the form must be filed within three years of the original filing date. Paying any additional tax due when you file Form 941-X can help avoid interest and penalties.