Does Your Small Business Need to File IRS Tax Form 941?
What is IRS Form 941?
The Employer’s Quarterly Federal Tax Return, 941 Form, is used to report employment taxes to the Internal Revenue Service. Small business owners who prepare payroll checks for employment will need to file IRS Form 941 four times a year. As an employer, you are responsible for withholding federal income tax, social security tax, and Medicare tax from each employee’s paycheck. This Form is also used to calculate the employer’s portion of social security and Medicare tax. The employer’s portion is half the total amount of tax due based on the gross payroll paid.
Who must file Form 941?
Typically, any business or individual who pays employment wages must file a Form 941 quarterly and continue to do so even if the business has no employees during select quarters. However, the exceptions are agricultural, seasonal, and household employees, who are not required to file each quarter.
What information do I need to file IRS Form 941?
Each time you file Form 941, you must report the number of employees, total wages paid and the amount withheld to calculate the tax payments owed to the IRS. To start your return, you will need your payroll records plus any documents supplied by employees entailing taxables tips.
Social security is 6.2% of your employee’s taxable income, and as the employee, you will also need to submit 6.2% of the total taxable payroll. If you are self-employed, you will need to pay both the employer and the employee tax 12.4%. If you earn more than $118,00, you don’t have to pay any additional social security tax on income over this amount.
Medicare tax is 1.45% of your employee’s taxable, and again as the employer, you will need to match this amount and pay 1.45%. If you are self-employed, you will pay both portions for a total of 2.9% If you employee high earners with salaries exceeding $200,000 during the tax year you will be required to pay an additional 0.9%.
How to Sign and Transmit Form 941 to the IRS?
To file you will need your small business details such as your company’s EIN and preferable an Online Signature PIN.
When you choose to file Form 941 using ExpressTaxFilings you know you are filing with the most accurate and efficient online software designed specifically for small business owners. You can either file your Form 941 by using an online signature PIN or e-signing the Form 8453-EMP.
If you would like to apply for a Form 94x PIN you can do so here at ExpressTaxFilings for FREE! We have you covered, making your IRS filing accurate, efficient, and secure. Create or log into your ExpressTaxFilings account and select “Create New Form.” You will have the option to request your PIN, and you simply follow prompts for entering your employer information by using our step-by-step process.
Keep in Mind! It can take up to 45 days to receive your PIN.
Alternatively, you can always file using Form 8453-EMP. We have you covered, making file accurate, efficient and secure.
941 Form penalties for late filing?
A failure to file Form 941 on time or not at all will first result in a 5% penalty on the tax return and increase each month the return is not submitted. This penalty will cap at 25%, and past this point, the IRS is within its rights to levy your bank account or possess your assets.
The IRS will also heavily penalize you for late payments or not paying the full amount owed by the deadline. You will be charged 2 to 15% of the unpaid tax determined by the number of days it remains unpaid.
Where to e-file Form 941?
We understand that calculating and filing your payroll tax information can be confusing, especially if you are a startup. At ExpressTaxFilings we take pride in being IRS-authorized providing you with accurate, efficient, and secure e-filing process that will save you both time and money.
If you have any questions about e-filing your small businesses Form 941 we are available by phone, live chat, and email to help! Our US-based customer support team will be happy to answer any questions you may have about e-filing with ExpressTaxFilings.
