Publication 15 |
2000 Tax Year |
Chapter 12 Filing Form 941
Each quarter, all employers who pay wages subject to income tax
withholding (including withholding on sick pay and supplemental
unemployment benefits) or social security and Medicare taxes must file
Form 941, Employer's Quarterly Federal Tax Return. However,
the following exceptions apply:
- Seasonal employers who no longer file for quarters when
they regularly have no tax liability because they have paid no wages.
To alert the IRS that you will
not have to file a return for one or more quarters during the year,
mark the Seasonal employer box above line 1 on Form 941. The IRS will
mail two Forms 941 to the seasonal filer once a year after March 1.
The preprinted label will not include the date the quarter ended. You
must enter the date the quarter ended when you file the return.
Generally, the IRS will not inquire about unfiled returns if at least
one taxable return is filed each year. However, you must mark the
Seasonal employer box on every Form 941 you file. Otherwise, the IRS
will expect a return to be filed for each quarter.
- Household employers reporting social security and
Medicare taxes and/or withheld income tax.
If you are a sole proprietor
and file Form 941 for business employees, you may include taxes for
household employees on your Form 941. Otherwise, report social
security and Medicare taxes and income tax withholding for household
employees on Schedule H (Form 1040), Household Employment
Taxes. See Pub. 926, Household Employer's Tax Guide, for
more information.
- Employers reporting wages for employees in American
Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the
U.S. Virgin Islands, or Puerto Rico. If the employees are not
subject to U.S. income tax withholding, use Form 941-SS. Employers in
Puerto Rico use Form 941-PR.
- Agricultural employers reporting social security,
Medicare, and withheld income taxes. Report these on Form
943, Employer's Annual Tax Return for Agricultural
Employees.
Form 941 e-file.
The Form 941 e-file program allows a taxpayer to electronically
file Form 941 using a personal computer, modem, and commercial tax
preparation software. Contact the IRS at
1-800-829-1040 or visit the IRS website at
www.irs.gov/elec_sys/efile-bus.html for more information. See Pub.
1855 for technical specifications.
941TeleFile.
You may be able to file Form 941 and pay any balance due by phone.
If you receive TeleFile materials with your Form 941 package, check
page TEL-1 of the 941TeleFile Instructions to see if you qualify for
this method of filing. If you have questions related to filing Form
941 using TeleFile, call the 941TeleFile call site at
901-546-2690. This phone number is for 941TeleFile information only
and is not the number used to file the return.
Electronic and magnetic tape filing by reporting agents.
Reporting agents filing Forms 941 for groups of taxpayers can file
them electronically or on magnetic tape. See the reporting agent
discussion in section 8 of Pub. 15-A, Employer's
Supplemental Tax Guide, for more information.
Penalties.
For each whole or part month a return is not filed when required
(disregarding any extensions of the filing deadline), there is a
penalty of 5% of the unpaid tax due with that return. The maximum
penalty is 25% of the tax due. Also, for each whole or part month the
tax is paid late (disregarding any extensions of the payment
deadline), a penalty of 0.5% per month of the amount of tax generally
applies. This penalty is .25% per month if an installment agreement is
in effect. You must have filed your return on or before the due date
of the return to qualify for the reduced penalty. The maximum for this
penalty is also 25%. The penalties will not be charged if you have a
reasonable cause for failing to file or pay.
Use of a reporting agent or other third-party payroll service
provider does not relieve an employer of the responsibility to ensure
that tax returns are filed and all taxes are paid or deposited
correctly and on time.
Do not file more than one Form 941 per quarter.
Employers with multiple locations or divisions must file only one
Form 941 per quarter. Filing more than one return may result in
processing delays and may require correspondence between you and the
IRS.
Hints on filing.
Do not report more than one calendar quarter on a return.
Use the preaddressed form mailed to you. If you do not have the
form, get one from the IRS in time to file the return when due. If you
use a form that is not preaddressed, show your name and EIN on it. Be
sure they are exactly as they appeared on earlier returns. See the
Instructions for Form 941 for information on preparing the
form.
Final return.
If you go out of business, you must file a final return for the
last quarter in which wages are paid. If you continue to pay wages or
other compensation for quarters following termination of your
business, you must file returns for those quarters. See the
Instructions for Form 941 for details on how to file a final return.
Note:
If you are required to file a final Form 941, you are also
required to furnish Form W-2 to your employees by the due date of the
final Form 941. File Forms W-2 and W-3 with the SSA by the last day of
the month that follows the due date of your final Form 941. See the
Instructions for Forms W-2 and W-3 for more information.
Filing late Forms 941 for prior years.
If you are filing an original return for a quarter in a prior year
and you are using the current year form, you will have to modify Form
941.
Caution:
The instructions on the form may be inappropriate for the year
for which you are reporting taxes because of changes in the law,
regulations, or procedures. The revision date (found under the form
number at the top of the form) will tell you the year for which the
form was developed. Contact the IRS if you have any questions.
Note:
A form for a particular year generally can be used without
modification for any quarter within that year. For example, a form
with any 2001 revision date (e.g., January or October 2001) generally
can be used without modification for any quarter of 2001.
In all cases, however, be sure to correctly fill out the "Date
quarter ended" section at the top of the form. If you are modifying
a form with preprinted information, change the date (the date is shown
with the month and year the quarter ends; for example, JUN01 would be
for the quarter ending June 30, 2001). Cross out any inapplicable tax
rate(s) shown on the form and write in the rate from Table 3 below.
You can get tax rates and wage base limits for years not shown in the
table from the IRS.
Social Security and Medicare Tax Rates
Reconciling Forms W-2, W-3, and 941.
When there are discrepancies between Forms 941 filed with the IRS
and Forms W-2 and W-3 filed with the SSA, we must contact you to
resolve the discrepancies.
To help reduce discrepancies--
- Report bonuses as wages and as social security and Medicare
wages on Forms W-2 and 941.
- Report both social security and Medicare wages and taxes
separately on Forms W-2, W-3, and 941.
- Report social security taxes on Form W-2 in the box for
social security tax withheld, not as social security wages.
- Report Medicare taxes on Form W-2 in the box for Medicare
tax withheld, not as Medicare wages.
- Make sure the social security wage amount for each employee
does not exceed the annual social security wage base limit.
- Do not report noncash wages that are not subject to social
security or Medicare taxes as social security or Medicare
wages.
- If you used an EIN on any Form 941 for the year that is
different from the EIN reported on Form W-3, enter the other EIN on
Form W-3 in the box for "Other EIN used this year."
To reduce the discrepancies between amounts reported on Forms W-2,
W-3, and 941--
- Be sure the amounts on Form W-3 are the total amounts from
Forms W-2.
- Reconcile Form W-3 with your four quarterly Forms 941 by
comparing amounts reported for--
- Income tax withholding.
- Social security wages, social security tips, and Medicare
wages and tips. Form W-3 should include Form 941 adjustments only for
the current year (i.e., if the Form 941 adjustments include amounts
for a prior year, do not report those prior year adjustments on the
current-year Forms W-2 and W-3).
- Social security and Medicare taxes. The amounts shown on the
four quarterly Forms 941, including current-year adjustments, should
be approximately twice the amounts shown on Form W-3. This is because
Form 941 includes both the employer and employee shares of social
security and Medicare taxes.
- Advance earned income credit.
Do not report on Form 941 backup withholding or income tax
withholding on nonpayroll payments such as pensions, annuities, and
gambling winnings. Nonpayroll withholding must be reported on Form 945
(see the separate Instructions for Form 945 for details).
Income tax withholding required to be reported on Forms 1099 or W-2G
must be reported on Form 945. Only taxes and withholding properly
reported on Form W-2 should be reported on Form 941.
Current Period Adjustment Example
Amounts reported on Forms W-2, W-3, and 941 may not match for valid
reasons. If they do not match, you should determine that the reasons
are valid. Keep your reconciliation so you will have a record of why
amounts did not match in case there are inquiries from the IRS or the
SSA.
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