By law, every employer needs to report some facts and fulfill accountability to the Internal Revenue Services (IRS). All registered and recognized employers under the jurisdiction of the IRS are supposed to file the Form 941 on a quarterly basis and are supposed to forward, or convey all the deducted payroll taxes. The returns for the January, February, March quarter is to be filed before April 30. The form for April, May, June quarter is to be filed before July 31, the form for July, August, September quarter is to be filed before October 31 and finally the form for October, November, December is to be filed before January 31.
General Instructions for Form 941
The Form 941 is filled in order to report the wages paid to employee, tips paid, Federal income tax that has been withheld, deductions and share of social security and Medicare taxes (includes employer and employee contribution), current quarters adjustments, advanced income or credit, any kind of exemptions. One very important part of the Form 941 is the Employer Identification Number (EIN). In case if you conduct any financial activity that is enumerated above you will need to get a EIN irrespective of what the size of your business is or how many employees you have. Whether a corporation, company, partnership or a sole trading concern, it does not matter as filing the Form 941 is essential and mandatory.
Further more you will have to ascertain a couple of things about filing this form. In case if you deduct less than $50,000 in the look back period, then you are a monthly schedule depositor. In contrast, if you deduct more than $50,000, then you are a semi-weekly schedule depositor. You will have to follow these two deposition schedule as per your category. For the deposition, post 2010, you will have to use the Electronic Federal Tax Payment System (EFTPS) to forward the tax amount to IRS. It must be noted that employers paying lesser than $2,500 have a bit of a different and lenient compliance to follow.
IRS Instructions for Filing Form 941
Actually filling in the Form 941, is a piece of cake. In the instructions for IRS Form 941, you will see that the Form has a 19-line structure, i.e, it has 19 lines that are needed to be filled up, plus a payment voucher with an acknowledgment.
- The introductory part of the form consists of general information such as name address and the Employer Identification Number.
- The first part consists of all details regarding the payment of wages and the deduction of taxes. In line 1,2,3 and 4 you will have to report details that include the number of employees, wages paid, income tax withheld and whether any non taxable wage has been paid.
- Next off, you will need to fill the row 5 (a) to (d) and rows 6 (a) to (e). The 5th row will include, the taxable social security wages, tips and Medicare wages and tips. 5 (d) is the total of all the three. The 6th row deals with exemptions. The number of employers exempted, total wages exempted and the total amount exempted, need to be filled in these rows.
- The next are rows are 7 (a) to (c) and row, 8,9,10 and 11. The 7th row includes total of all current quarter's adjustments. The 8th row consists of the total taxes after adjustments, whereas the 9th row consists of advanced income credit. The 9, 10 and 11 rows, includes other totals such as deposits, overpayments and advances.
- The remaining rows till 15 consists of balances and totals of any advances, credits and included deductions.
- Part 2 of the Form 941 consists of the payment schedule details and you will have to just enter in the total of balance that you will be paying.
- Part 3 refers to closures, reorganization and other such financial aspects of the business.
- Part 4 and 5, gives details regarding the third-party designee, your signature and the payment voucher. You will need to fill in several details such as your payment details and contacts.
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