What is Form 941 Schedule B, Who Should Complete It?

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If you’re preparing Form 941, you might be wondering how to complete Form 941 Schedule B. Well, worry not, TaxBandits is here to help you learn about Schedule B. Let’s dive right in and see exactly what Schedule B is.

What is Schedule B on 941?

Form 941 Schedule B is the Report of Tax Liability for Semiweekly Schedule Depositors. Therefore, if you make your tax deposits to the IRS on a semiweekly basis, you are required to attach 941 Schedule B. But how do you know if you’re a semiweekly depositor? We are diving into this next.

What is a semiweekly depositor? 

The IRS classifies semiweekly depositors based on the amount of employment taxes reported during the lookback period. For example, the lookback period for a Form 941 employer in 2025 would be July 1, 2023, to June 30, 2024.

Generally, you are considered a semiweekly depositor if: 

• You reported more than $50,000 in employment taxes during the lookback period. 
• You accumulated a tax liability of $100,000 on any day during a deposit period in the current or past calendar year. 

Note: Regardless of whether you are a semiweekly or monthly depositor, if you accumulate a tax liability of $100,000 or more on any day during a deposit period, you must deposit it the next business day. The Next-Day Deposit Rule indicates that you will be considered a semiweekly depositor for the remainder of the current calendar year and the following year.

What does Schedule B look like? 

Your first reaction to this attachment form may be, “Wow, that’s a lot of boxes!” That assessment is accurate, but Schedule B doesn’t have to be complicated. Here is a breakdown of the information you will need: 

• At the top of Schedule B (Form 941), you will need to indicate your business’s EIN. Double-check that this matches the Employer Identification Number (EIN) you reported on Form 941 and the one the IRS has on record. 
• You will also need to indicate the quarter and calendar year for which you are filing. 
• There are 31 boxes for each month of the quarter. This is where you will provide your daily tax liability (not tax deposits).
• To the side of the daily tax liability boxes, you’ll see a box to total your monthly tax liability.
• Finally, the box at the bottom is where you input the total tax liability of the quarter. You get this by adding the monthly tax liabilities totals together. 

It is crucial that this grand total matches line 12 on your Form 941 to ensure IRS compliance. 

To simplify the process, think of Schedule B as a register for your payroll taxes. You log your daily and monthly tax liabilities, add them up, and the total that comes out is what you print on the receipt—Form 941. 

So if you keep track of your tax liabilities, the form takes care of itself!

How do I determine the tax liability?

Your tax liability is derived from the wages that you pay. It is a combination of the federal income tax that you withheld from your employee’s pay and the shared Social Security and Medicare taxes.

Does TaxBandits support Schedule B? 

Yes! There’s no need to worry about handling Schedule B by yourself; our software supports this attachment form and helps you complete it with features that are included in the form price. Our software walks you through the attachment form step by step. Additionally, electronic filing allows you to avoid minor clerical errors that are easy to make on paper. 

The TaxBandits team is committed to delivering a superior e-filing experience to our users. This experience includes our U.S.-based support team that prioritizes you. If you have any questions during your 941 filing process, you can reach out via phone, email, or live chat for timely assistance.