Highlight: The IRS Form 941 is one of the most important payroll-related tax returns used by businesses to report employment taxes, including federal income tax withholding, Social Security tax, Medicare tax, and Additional Medicare tax.
What is the IRS Form 941?
IRS Form 941, Employer’s Quarterly Federal Tax Return, is the federal tax form employers use to report income taxes, Social Security tax, and Medicare tax withheld from employees’ paychecks. Employers also use this form to pay their portion of Social Security and Medicare taxes.
The form is used to report wages paid and tips employees reported to employers, along with federal income tax, Social Security tax, and Medicare tax withheld. Employers use this form to make tax deposits and claim tax credits.
When do businesses need to file Form 941?
Form 941 must be filed quarterly, even if the business has no taxes to report during the quarter. The filing deadlines are:
- April 30 for the first quarter (January–March)
- July 31 for the second quarter (April–June)
- October 31 for the third quarter (July–September)
- January 31 for the fourth quarter (October–December)
If any due date falls on a Saturday, Sunday, or legal holiday, you may file the return on the next business day.
What taxes are reported on Form 941?
Form 941 is used to report the following employment taxes:
- Federal income tax withheld from employees’ wages
- Social Security and Medicare taxes (both the employer’s and the employee’s share)
Social Security and Medicare taxes are also known as FICA taxes. Employers are responsible for withholding these taxes from employees’ wages and paying a matching amount. For Social Security tax, the rate is 6.2% for each up to the annual taxable wage base ($176,100 for 2025). The Medicare tax rate is 1.45% for both employer and employee, with an additional 0.9% withheld from employees earning more than $200,000.
Who needs to file Form 941?
Most employers who pay wages subject to income tax withholding, Social Security tax, or Medicare tax must file Form 941. Seasonal employers and employers of household or agricultural workers may not be required to file Form 941. Household and agricultural employers have different reporting requirements.
If you paid a household employee $2,800 or more in 2025, you must withhold and pay Social Security and Medicare taxes. If you paid an election worker $2,400 or more in 2025, you must do the same.
Where should you file Form 941?
You can file Form 941 electronically using the IRS e-file system or mail a paper return. If you mail a paper return, the address depends on your location and whether you are submitting a payment with the form.
When are employment tax deposits due?
Employment tax deposits are generally due either monthly or semiweekly, depending on the employer’s deposit schedule. Most employers must deposit their taxes on a semiweekly schedule, but new employers and those with smaller payrolls may qualify for a monthly schedule.
How often does the IRS update Form 941?
The IRS updates Form 941 and its instructions regularly to reflect changes in tax laws and regulations. Employers should use the most recent version of the form and instructions when filing.
As of 2025, the most recent version is Form 941 (Rev. March 2025), and instructions for Form 941 (Rev. March 2025).
What line items are on Form 941?
Form 941 includes the following sections:
- Part 1: Questions about wages, tips, and other compensation
- Part 2: Tax liability for the quarter
- Part 3: Information about your business
- Part 4: Third-party designee
- Part 5: Signature
Employers must report the number of employees, total wages paid, taxable Social Security and Medicare wages, and withheld taxes.
Is deposit schedule relief available?
Yes. The IRS may grant relief from deposit schedule penalties if the employer meets certain conditions and can show reasonable cause. Relief may also be available in cases of disaster, casualty, or other special circumstances.
Can I amend a previously filed Form 941?
If you discover an error on a previously filed Form 941, you must file Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, to correct the mistake.
As of 2025, the current version is Form 941-X (Rev. April 2025), and the instructions for Form 941-X (Rev. April 2025).
You may use Form 941-X to report overreported or underreported taxes, wages, and other items. You must file a separate Form 941-X for each quarter that needs correction.
Note: Lines 18a, 24, 26a, 30, 31a, 31b, 32, 33a, 33b, and 34 are now reserved on Form 941-X (Rev. April 2025), as COVID-era correction periods have expired.
Is it important to use the current Form 941?
Employers must always use the most current version of Form 941 when filing. Using an outdated version can result in processing delays and potential penalties. At the time of writing, use Form 941 (Rev. March 2025) and the corresponding instructions.
Future changes to tax law may affect the format and content of Form 941. Employers should monitor IRS updates and subscribe to IRS notifications to stay informed.
What happened to COVID-era credits on Form 941?
During the COVID-19 pandemic, Form 941 was revised to allow for various employment tax credits, including:
- Employee Retention Credit
- Credits for qualified sick and family leave wages
- Credit for COBRA premium assistance
These credits are no longer available, and the related lines have been removed or reserved in recent versions of Form 941.
How can I stay up to date on Form 941 changes?
Using a payroll resource guide, such as IRS Publication 15 or 15-A, can help ensure that you understand your responsibilities and remain compliant. Thomson Reuters can also help you quickly find expert answers with CoCounsel Tax. Request a free demo of CoCounsel Tax today.
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