If you have employees you need to know about IRS Form 941. This is called Employer’s Quarterly Federal Tax Return. It basically covers what you paid your employees and what you need to pay in Social Security and Medicare taxes on their behalf. You are reporting and paying the withholding you calculated on every paycheck for that quarter, and matching it with your half.
How to Avoid Paying Penalties on the IRS Form 941
Get this darn form in on time every quarter. Don’t delay, and do it as soon as you can. Unless you go through a third-party company that can submit electronically, you will need to print out a fresh Form 941 every three months, fill it out and mail it to the IRS. If there’s one thing you put at the top of your list of things not to forget or avoid, it’s the 941.
That’s because you’re dealing with your employee salaries here. Or rather you’re dealing with money that’s not yours but that’s in your care. You see, you’ve already take out money from every paycheck as you go…that’s called withholding and I hope that if you’re reading about the 941 you already know what withholding is.
That money you have from withholding is not yours…it belongs to the IRS. You’ve been keeping it for them for a period of up to three months. And if you fail to hand it over to the IRS in proper format or on time, boy oh boy the penalties are terrible. Late fees, interest, and penalties and the more wages you’ve paid the higher your penalties will be, as well as interest of course.
So please remember to file IRS Form 941 every quarter and do it on time. If you are required to make Federal Deposits these must be made on time too. Good luck! Continue reading “Employers: Don’t Forget IRS Form 941”