When to File Form 941: Quarterly Filing Deadlines

Form 941, the Employer’s Quarterly Federal Tax Return, is a document for businesses with employees. This form reports income, Social Security, and Medicare taxes withheld from employee paychecks. It also includes the employer’s share of Social Security and Medicare taxes. Accurate and timely filing of Form 941 is an obligation for Internal Revenue Service (IRS) compliance.

Regular Filing Deadlines

Employers must adhere to specific quarterly deadlines for filing Form 941. The tax year is divided into four quarters, each with a corresponding due date:

• The first quarter (January 1 – March 31) is due by April 30.
• The second quarter (April 1 – June 30) is due by July 31.
• The third quarter (July 1 – September 30) is due by October 31.
• The fourth quarter (October 1 – December 31) is due by January 31 of the following year.

If a deadline falls on a Saturday, Sunday, or legal holiday, the due date shifts to the next business day. Employers who make timely, full tax deposits for the quarter receive an additional 10 days to file. For example, the first quarter’s due date extends from April 30 to May 10 for those meeting this criteria.

Final Return Considerations

If a business ceases operations or stops paying wages, the standard quarterly filing schedule for Form 941 changes. A final Form 941 must be filed for the quarter in which the business made its last wage payment.

When preparing this final return, the employer must indicate it is a final return by checking the appropriate box on Form 941. This signals to the IRS that the business will no longer have a quarterly filing requirement for employment taxes.

Required Information for Filing

Accurate Form 941 preparation requires employers to compile specific payroll and tax information. This includes:

• Total wages, tips, and other compensation paid to employees during the quarter.
• Federal income tax withheld from employee paychecks.
• Both employee and employer shares of Social Security and Medicare taxes, often referred to as FICA taxes.
• Any adjustments to Social Security and Medicare taxes, such as for non-taxable sick pay or third-party sick pay.

Precise payroll records are essential for accurate Form 941 completion.

Submitting Form 941

Employers have options for submitting Form 941 to the IRS. One method is mailing the paper form. The specific mailing address depends on the business’s state and whether a payment is included. Employers should consult IRS Form 941 instructions or the IRS website for the correct address.

Electronic filing (e-filing) is another option. Employers can e-file through IRS-authorized providers or by using the Electronic Federal Tax Payment System (EFTPS) for tax payments. E-filing offers benefits like faster processing, immediate receipt confirmation, and reduced errors.

Consequences of Late Filing

Failure to file Form 941 or pay taxes on time can result in IRS penalties. A penalty for failure to file is 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25%. This penalty begins accruing the day after the due date.

A penalty for failure to pay taxes is 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid, up to a maximum of 25%. If both penalties apply in the same month, the failure to file penalty may be reduced by the failure to pay penalty amount. Additionally, interest may be charged on any underpayments from the original due date until the tax is paid in full. Penalties may be reduced or avoided if the employer demonstrates reasonable cause for the delay.