What is IRS Tax Form 941?
Tax Form 941 is the Employer’s magazine Federal Tax Return. As a company you recognize you must withhold federal taxes from the paychecks of your workers.
Tax Form 941 can be filled out using online payroll tax software by QuickBooks. Employers do not require hiring bookkeepers and facing the luxurious costs for their services. Employers can prepare and file Tax Form 941 by themselves using online payroll software. You people can smooth try the payroll software for 30 days for free.
The taxes which are withheld consist of federal income tax, Medicare tax and Social safety tax. The worker is taxed at 4.2% and the employer is taxes at 6.2% for Social Security. They both pay 1.45% for Medicare tax. The limit of taxation for Social Security tax is $ 106,800 for each worker for the year. Medicare taxation does not have a limit on wages earned which are subject to the tax.
Who Submits Tax Form 941?
Employers are accountable to prepare and send Tax Form 941 to the Internal Revenue Service.
Tax Form 941 is used to report the following Information:
* Wages paid to your workers
* Tips paid to your staff
* The federal income tax you took out of employee checks
* The quantity of employer’s and employee’s portions of cash paid for Social Security and the Medicare tax paid
* Current quarter’s adjustments to Social Security and Medicare taxes for fractions of cents, group-term life insurance, tips, and sick pay
* Credit for COBRA premium assistance expenditure
* Advanced earned income tax credit (eic) expenditure
Of course there are certain types of expenses that should not be reported on Tax Form 941 for example, income tax withholding on non-payroll payments. Some of the non-payroll expenses would include gambling winnings, pensions and annuities. Tax Form 945 is used to report these amounts which is not a quarterly Tax Form, it is an annual Tax Form used to statement to the federal government.
When is Tax Form 941 Filed?
Tax Form 941 is filed every three months. Every employer is on the same quarterly payment agenda. If you’re new in business you must file your first Tax Form 941 at the end of the first quarter in which you paid employees wages. Tax Form 941 is due on the last day of the month following the end of the quarter.
Here is the Tax Form 941 Schedule:
* First quarter ends on March 31st – you must file by April 30th
* Second quarter ends on June 30th – you must file by July 31st
* Third quarter ends on September 30th – you must file by October 31st
* Fourth quarter ends on December 31st – you must file by January 31st
If you require help when it comes to Tax Form 941 Employer’s Quarterly Federal Tax Return you should use online payroll software by QuickBooks. You will be amazed at how simple it is to plug in the numbers and let the payroll software program do all of the hard work for you. QuickBooks payroll tax software can allow you to get back to running your company.
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