What is Tax Form 941?

Employers who have employees working for them are required to complete and submit Form 941 to the Internal Revenue Service. The whole purpose of Form 941 is to report quarterly tax withholding for income tax payments.

These include FICA taxes; Social Security and Medicare taxes, adjustments for tips and sick pay, withholding federal income taxes and amounts due from Medicare wages for the employer and the employee.

Form 941 is due on the last day of each quarter. As mentioned in our other posts, there is a penalty for not filing Form 941. The penalty is 5% of each quarter’s unpaid tax and this can reach a maximum amount of 25%.

Deadline for Filing Form 941

As a side note, keep in mind that each quarter’s penalty is calculated independently. So if you haven’t filed Form 941 for over six months, the first and second quarter’s penalty will run individually. Also, if you’ve made your payroll tax deposits for the quarter on time, you’ll have 10 more days after the due date to file Form 941.

  • Due Date for Quarter 1: March 31
  • Due Date for Quarter 2: June 30
  • Due Date for Quarter 3: August 31
  • Due Date for Quarter 4: December 31

Sending Form 941 to IRS

There are two addresses for mailing Form 941. Where you’re going to send depends on the state you live in. The mailing addresses also different if you’re going to mail with payment or not. You need to mail Form 941 with payment to the Department of the Treasury and without pay to the Internal Revenue Service.

See the full list of mailing addresses here.

Completing Form 941

Since you need to make a few calculations to complete the IRS Form 941, you should know a few things beforehand.

The Social Security rate is currently 6.2% for both employees and the employer. The Medicare tax rate, on the other hand, is 1.45% for both employees and the employer. These two different taxes is what makes up the total FICA Tax.