What Is Tax Form 941 and Who Needs to File It?

IRS Form 941, officially known as the Employer’s Quarterly Federal Tax Return, is a document most employers use to report various payroll taxes to the Internal Revenue Service (IRS). This form details wages paid to employees, reported tips, and the federal income tax, Social Security tax, and Medicare tax withheld from employee paychecks. It also includes the employer’s portion of Social Security and Medicare taxes. Accurately completing and timely filing Form 941 ensures businesses meet their federal tax obligations, making it a regular and important task for those with employees.

Purpose and Scope of Form 941

Form 941 summarizes an employer’s quarterly payroll tax liabilities and payments. It reports federal income tax, Social Security tax, and Medicare tax withheld from employee wages, plus the employer’s matching share. These combined taxes are often called Federal Insurance Contributions Act (FICA) taxes.

Most businesses that pay wages subject to federal income tax withholding or FICA taxes are required to file Form 941 quarterly. This includes various business structures, such as sole proprietorships, partnerships, and corporations, provided they have employees. Exceptions exist for certain types of employers; for instance, seasonal employers may only need to file for quarters when they pay wages. Employers of household employees or agricultural employees typically have different reporting requirements, often using Forms 943 or 944 instead of Form 941. Businesses with an annual employment tax liability of $1,000 or less might be eligible to file Form 944 annually, rather than Form 941 quarterly, by contacting the IRS for approval.

Preparing Your Form 941 Information

Before completing Form 941, employers must gather specific payroll and tax information for the quarter. This preparatory step is essential for accurate reporting and involves compiling several key data points. Employers need to determine the total number of employees compensated during the quarter, including those who received wages, tips, or other forms of remuneration. A crucial piece of information is the total wages, tips, and other compensation paid to employees within the quarter. From this, the federal income tax withheld from employee wages must be calculated and recorded.

Additionally, employers must ascertain the taxable Social Security wages and the corresponding Social Security tax withheld, along with the employer’s matching share. For 2025, the Social Security tax rate is 6.2% each for the employee and employer, applied up to a wage base limit of $176,100. Similarly, the taxable Medicare wages and Medicare tax withheld, including the employer’s matching portion, are required. The Medicare tax rate is 1.45% each for the employee and employer, with no wage base limit. Any additional Medicare tax withheld from employees, which applies to wages exceeding $200,000 for an individual, also needs to be accounted for.

Adjustments to Social Security and Medicare taxes, such as those for fractions of cents, sick pay, or group-term life insurance, must also be included. Furthermore, employers should tally all federal tax deposits already made for the quarter to ensure these payments are correctly applied against the total tax liability.

Submitting Form 941 and Key Deadlines

Once Form 941 is completed, employers have several methods for submission. Electronic filing is an efficient option, accessible through authorized e-file providers or tax preparation software. This method often provides immediate confirmation.

Alternatively, employers can mail the paper form directly to the IRS. The specific mailing address depends on whether a payment is included with the return, and the IRS provides detailed instructions for the correct address. If mailing, the U.S. Postal Service must postmark the form by the due date.

Form 941 is a quarterly return, with specific filing deadlines that must be observed to avoid penalties. The typical due dates are April 30 for the first quarter (January-March), July 31 for the second quarter (April-June), October 31 for the third quarter (July-September), and January 31 of the following year for the fourth quarter (October-December). If any of these due dates fall on a Saturday, Sunday, or legal holiday, the deadline shifts to the next business day. Employers who have made timely deposits of all taxes due for the quarter may receive an additional 10 calendar days to file their return.

Tax deposit rules dictate when employers must remit their payroll taxes. Most employers deposit these taxes monthly or semi-weekly, based on their total tax liability during a “lookback period” of the previous four quarters. Monthly depositors remit taxes by the 15th day of the following month. Semi-weekly depositors have more frequent deadlines based on the day wages are paid.

If an employer’s accumulated tax liability reaches $100,000 or more on any single day, the deposit must be made by the next business day, regardless of the regular deposit schedule. Payments can be made electronically through the Electronic Federal Tax Payment System (EFTPS). Employers should retain detailed records of their submissions and payments for future reference.