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

The schedule B is the Report of Tax Liability for Semiweekly Schedule Depositors.

Form 941

You probably keep hearing about the revised Form 941 and how many changes the IRS has made to this form. First of all, who is required to complete Schedule B and what is its purpose? We will cover all of this information and more!

What is Schedule B? 

The schedule B is the Report of Tax Liability for Semiweekly Schedule Depositors. Therefore, if you make your tax deposits to the IRS on a semi weekly basis, you are required to attach Schedule B. How do you know if you’re a semi weekly depositor? We are diving into this next.

What is a Semi Weekly Depositor? 

The IRS has a general rule when it comes to semi weekly depositors. You are considered one if:

  1. You reported more than $50,000 in employment taxes
  2. You have accumulated $100,000 or more in tax liabilities in the current or past calendar 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!

At the top of Schedule B you will need to indicate your business’ EIN. As always, make sure this matches the EIN that you reported on Form 941 and what the IRS has on record. You will also need to indicate the quarter for which you are filing and the calendar year for which you are filing. 

You will notice that there are 31 boxes for each month of the quarter. This is where you will provide your daily tax liability, not tax deposits. Schedule B is not meant to report your tax deposits. 

Once you have entered your daily tax liability for each day of the quarter. You will need to total this up and enter it in the box off to the side. Then you will need to total up all 3 of your monthly tax liabilities to get your total liability for the quarter. 

This grand total must be equal to line 12 on your Form 941. This is crucial. 

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 employees’ pay and the shared social security and Medicare taxes. 

How do I factor in COVID-19 tax credits?  

Remember, Schedule B is designed to capture information about your daily tax liabilities. Your tax liability will remain the same despite the reduction you make to your tax deposits, therefore you should NOT reduce your daily tax liability. 

It is also important to note that your tax liability on any given day should never be a negative value, this is a sign that you have reduced your tax liability which is incorrect. 

Does TaxBandits support Schedule B? 

Yes! There’s no need to worry about handling Schedule B yourself, our software supports this attachment form and helps you complete it. Our software walks you through the attachment  form, plus electronic filing allows you to avoid minor clerical errors that you may make on paper. 

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

Form 941

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