The Complete Comprehensive Guide to the 2018 Form 941

Running a business while trying to manage your tax compliance can be overwhelming, especially during busy seasons. To ensure you stay on top of your quarterly tax filings, we compiled a complete comprehensive guide to the 2018 Form 941. You don’t want to deal with late IRS penalties and fees 😱 so here’s everything you need to know to get started today!

Introduction to the 2018 Form 941

The IRS Form 941 or Employer’s Quarterly Tax Return is used to report employment taxes. As an employer, you are responsible for withholding federal income tax, social security tax, and Medicare tax from the salary of each employee. Your quarterly tax report is also used to calculate the employer’s portion of Social Security and Medicare tax.  

Information Required to File Form 941 Online

• Employer Details: Name, EIN, and Address
• Employer Details:
  • Employee Count
  • Medicare Tax and Social Security
  • Deposit Made to the IRS
  • Tax Liability (Monthly/Semiweekly)
  • Signing Authority Information
  • Online Signature PIN or Form 8453-EMP

Form 941-SS

Never heard of this particular 941 Form? Not a problem.

Form 941-SS is the Employer’s Quarterly Federal Tax Return for U.S. Territories and is filed by wage-paying employers in American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands.

Similar to IRS Form 941, the employers in these territories must file Form 941-SS every quarter, and are responsible for withholding federal income tax, social security tax, and Medicare tax from each employee’s salary.

Note: The same information is required to file both Form 941 and Form 941-SS.

Form 941 Schedule R

Form 941 Schedule R is the Allocation Schedule for Aggregate Form 941 filers and is required to be filed by CPEOs (Certified Professional Employer Organization) and Section 3504 reporting agents.

Schedule R simplifies the aggregate reporting process by allocating aggregate wages reported on Form 941 to each of their clients.

Aggregate filers can use their own EIN to file a single Form 941 for all their clients with Schedule R along with their respective wage and tax liability information for the tax period.

Information Required to File Form 941 Schedule R

• Employer Details of the CPEO / Section 3504 Agent: Name, EIN, and Address
• Employment Details of the Aggregate Filer and Their Clients:
• • Total Number of Employees
  • Total Medicare and Social Security Tax Withheld
  • Total Deposit Made to the IRS
  • Total Tax Liability (Monthly/Semiweekly)
  • Signing Authority Information, Online Signature PIN or IRS Form 8453-EMP.

Quarterly Filing Deadlines

Employment taxes for Forms 941, 941-SS and 941 Schedule R are due on the following dates:

Note: Remember, there is no extension form for 941 Form 2018, so you must file by these dates to avoid expensive penalties from the IRS.

Failure-to-File Penalties for 941 Form 2018

If you fail to file your 941 Form 2018 by the deadline your business will incur a penalty of 5% of the total tax amount due. You will continue to be charged an additional 5% each month the return is not submitted to the IRS, and this IRS penalty lasts for up to 5 months.

Furthermore, failing to file any owed taxes will result in an additional charge of .5% of the unpaid tax amount, and this fee will increase each month the payment remains unpaid. The penalty will increase to 1% ten days following the IRS notice of intent to levy.

Penalties for Aggregate Form 941 Filers:

Typically, CPEOs are solely responsible for paying their clients’ employment taxes, filing returns, and making deposits and payments for the reported taxes. IRC Section 3504 Agents and their clients are both responsible for paying their employment taxes, filing returns, and making deposits and payments for the reported taxes.

For more information on penalties for not filing or paying owed taxes, click here.

File Form 941 Online With TaxBandits

Now that you have everything you need to know about IRS Form 941, easily file Form 941 online using TaxBandits. Our interview-style filing guide simplifies the e-filing process so you can remain compliant in minutes. Our exclusive Form 94x Series features allow you to complete and transmit your Form 941 tax filing(s) directly to the IRS, and we even have a built-in audit error-check. 

Get a head start on those 2nd Quarter Form 941 tax filings–register for your FREE TaxBandits account today.

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