When Are Form 941 Due? Quarterly Filing Deadlines
Navigate your business's Form 941 requirements. Learn to understand quarterly federal tax reporting, ensure timely submissions, and avoid IRS penalties.
Form 941, the Employer’s Quarterly Federal Tax Return, is a document most employers use to report income taxes, Social Security tax, and Medicare tax withheld from employee wages. It also reports the employer’s share of Social Security and Medicare taxes. Businesses that pay wages to employees and have a tax liability of $1,000 or more for these taxes in a calendar quarter are generally required to file Form 941.
Understanding Quarterly Due Dates
Form 941 must be filed quarterly, with specific due dates for each period. The first quarter (January 1 to March 31) is due by April 30. For the second quarter (April 1 to June 30), the deadline is July 31. The third quarter (July 1 to September 30) is due by October 31, and the fourth quarter (October 1 to December 31) is due by January 31 of the following year.
Should any of these filing due dates fall on a Saturday, Sunday, or legal holiday, the deadline shifts to the next business day. An exception to these deadlines allows employers who have made all their tax deposits on time and in full for the quarter an additional 10 calendar days to file.
Preparing and Submitting Form 941
To accurately complete Form 941, employers must gather specific information from their payroll records. This includes the total wages paid to employees, the federal income tax withheld from those wages, and both the employee and employer shares of Social Security and Medicare taxes.
It is important to understand the distinction between depositing payroll taxes and filing Form 941. Payroll taxes, which include federal income tax withholding and Social Security and Medicare taxes, are generally deposited much more frequently than quarterly, often on a monthly or semi-weekly schedule, depending on the employer’s tax liability. These deposits are payments of the tax liability, while Form 941 is the report detailing that liability and the payments already made. Employers typically make these deposits electronically through the Electronic Federal Tax Payment System (EFTPS).
Once Form 941 is accurately completed, employers can submit it to the IRS. Electronic filing (e-file) is encouraged by the IRS as it can reduce processing errors and provide faster status updates. Employers can e-file using IRS-approved software or through a tax professional. For those choosing to mail a paper form, the correct IRS mailing address varies depending on the state where the business operates and whether a payment is included with the form.
Penalties for Non-Compliance
Failing to meet Form 941 deadlines can result in various penalties from the IRS. A common penalty is for failure to file on time, which can be 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid taxes. There are also penalties for failure to pay the tax liability reported on Form 941, generally 0.5% of the unpaid taxes per month, also capped at 25%.
A separate penalty applies for failure to deposit payroll taxes on time or in the correct amount. This penalty typically ranges from 2% to 10% of the unpaid deposit, depending on how late the deposit is made. Interest may also be charged on underpayments and unpaid penalties, accruing daily until the debt is paid in full. The IRS may consider waiving penalties under certain circumstances, such as reasonable cause.