Instructions for Form 941 Schedule B |
2006 Tax Year |
This is archived information that pertains only to the 2006 Tax Year. If you are looking for information for the current tax year, go to the Tax Prep Help Area.
Completing Schedule B (Form 941)
Fill in Your Business Information
Carefully fill in your employer identification number (EIN) and name at the top of the schedule. Make sure that they exactly
match the name of your
business and the EIN that IRS assigned to your business and also agree with the name and EIN shown on the attached Form 941
or Form 941-SS.
Always be sure the EIN on the schedule you file exactly matches the EIN that IRS assigned to your business. Do not use your
social security number
on forms that ask for an EIN. Filing a Schedule B (Form 941) with an incorrect EIN, or using the EIN of another business,
may result in penalties and
delays in processing your return.
Show the calendar year that applies to the quarter checked. See Check the Box for the Quarter below.
Check the Box for the Quarter
In the box at the top of the schedule, check the appropriate box of the quarter for which you are filing this schedule. Make
sure that the quarter
checked on the top of the Schedule B (Form 941) matches the quarter checked on your Form 941 or Form 941-SS.
Fill in Your Tax Liability by Month
Schedule B (Form 941) is divided into the 3 months that make up a quarter of a year. Each month has 31 numbered spaces that
correspond to the dates
of a typical month. Write your tax liabilities in the spaces that correspond to the dates you paid wages to your employees, not the date
payroll deposits were made.
For example, if your payroll period ended on
December 31, 2005, and you paid the wages for that period on January 6, 2006, you would:
Make sure you have checked the appropriate box on line 15 of Form 941 or Form 941-SS to show that you are a semiweekly schedule
depositor.
Total Liability for the Quarter
To find your total liability for the quarter, add your monthly tax liabilities.
Here are some examples.
-
Employer A is a semiweekly schedule depositor who pays wages for each month on the last day of the month. On December 22, 2006,
Employer A also paid its employees year-end bonuses (subject to employment taxes). Because Employer A is a semiweekly schedule
depositor, Employer A
must record employment tax liabilities on Schedule B (Form 941). For the 4th quarter (October, November, December), Employer
A should report tax
liability in this way—
-
Employer B is a semiweekly schedule depositor who pays employees every other Friday. Employer B accumulated a $20,000 employment
tax liability on each of these pay dates:
1/13/06, 1/27/06, 2/10/06, 2/24/06, 3/10/06, and 3/24/06. Since Employer B is a semiweekly schedule depositor, Employer B
must record tax
liabilities on Schedule B (Form 941) in this way—
-
Employer C is a new business and monthly schedule depositor for 2006. Employer C pays wages every Friday and has accumulated a
$2,000 employment tax liability on
1/13/06 and a $110,000 liability on 1/20/06 and on every subsequent Friday during 2006. Under the deposit rules, employers
become semiweekly
schedule depositors on the day after any day they accumulate $100,000 or more of tax liability in a deposit period. (See section 11 of Pub. 15
(Circular E) or section 8 of Pub. 80 (Circular SS) for details.)
Because Employer C accumulated $112,000 on 1/20/06, Employer C became a semiweekly schedule depositor on the next day and
must complete Schedule B
(Form 941) and file it with Form 941 or Form 941-SS. Employer C should record tax liabilities in this way—
On Schedule B (Form 941), you must take into account adjustments to correct errors on prior period returns. See lines 7d-7g
on post-2004 versions
of Forms 941; lines 7e and 7g on post-2004 versions of Forms 941-SS. (For pre-2005 Forms 941 and 941-SS, see lines 4 and 9.)
-
If the adjustment corrects an underreported liability in a prior quarter, include the adjustment amount in the total liability
reported for the entry space that corresponds to the date you discovered the error.
-
If the adjustment corrects an overreported liability, use the adjustment amount to offset subsequent liabilities until it is used
up.
Example.
On 1/20/06, Employer D discovered that social security tax was over-reported by $10,000 on a prior quarter return. Employer
D paid wages on
1/13/06, 1/20/06, 1/27/06, and 2/3/06 and had a $5,000 tax liability for each of those pay dates. On Schedule B (Form 941),
Employer D must report a
$5,000 liability on 1/13/06 for Month 1 using line 13. Since the adjustment for the $10,000 over-reported liability offsets
the
1/20/06 and 1/27/06 liability, Employer D does not deposit or report these two $5,000 liabilities on Schedule B (Form 941).
Employer D must report
the $5,000 liability for 2/3/06 on Month 2 using line 3. (See section 13 of Pub. 15 (Circular E) for details on reporting
adjustments to correct
errors on prior period returns.)
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