What is a 941?
Running a business has a lot of behind-the-scenes work that keeps things moving fluidly. One such piece of the owner’s puzzle is filing Form 941. Employers use Form 941 to report income taxes, social security tax, or Medicare tax withheld from employee's paychecks and pay the employer's portion of social security or Medicare tax. This particular filing is done quarterly and can be done on paper or electronically. There are, of course, benefits to e-filing which include saving you time, being secure and accurate and receiving acknowledgement within 24 of processing.
In order to e-file you will need to purchase IRS-approved software. They provide a list of acceptable options based on the relevant tax year. It may also require a fee to e-file. You’ll need to apply for a PIN to use and can take up to 45 days to receive it. The quarterly filing deadlines in the calendar year are as follows: 4thQ: 1/31, 1stQ: 4/30, 2ndQ: 7/31, and 3rdQ: 10/31. It’s worth noting paper forms must be postmarked by these dates. If this date falls on a weekend in any given year, you will have until the next business day to get them turned into the IRS.
Likewise, having a Payroll Specialist or Tax Professional at your disposal means they submit the forms for you. They are used to meeting quarterly deadlines and always aware of what needs to be submitted. Also, when you use a Payroll Specialist they will already have the answers for the form. Those questions include: number of employees receiving pay, amount of wages, Federal income tax withheld, other compensations, taxable social security wages & tips, taxable Medicare wages & tips, unreported tips, current quarters adjustments for sick pay & insurance, payroll tax credits, and other adjustments & credits. You must also track your tax liability for each month and include it on Form 941.
This can seem like a daunting task. We are here to help!