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If you’re a first-time business owner — or even if you’re not — you might not know that you need to file quarterly taxes if you pay employees. To do this, the IRS requires you to file Form 941. While filing this tax form doesn’t apply to every business owner, it applies to most. It’s essential to understand Form 941 instructions so you know how to file, interpret, and submit the form.
To guide you, here’s a rundown of everything you need to know regarding Form 941.
What is Form 941?
Employers use Form 941, also known as the Employer’s Quarterly Tax Form, to report employee wages and payroll taxes. The form requires employers to report how many employees they have and the amounts withheld from each employee’s pay, including federal income tax, Social Security tax, and Medicare tax.
What’s included in Form 941?
- Number of employees
- Wages paid
- Tips
- Federal income tax withheld
- Employer and employee share of Social Security and Medicare taxes
This form can also include adjustments for sick pay and more.
Where do I mail Form 941?
To file the 941 tax form, you can send it to the IRS via paper mail or e-file using IRS-approved software. When applicable, business owners must also list any advances on earned income credits paid to employees. If your business fails to file Form 941 by the quarterly due dates, it faces the failure-to-file penalty, which is 5% of the total tax amount due each month, up to 25%.
Form 941 mailing addresses
The IRS offers a simple way to physically mail Form 941 depending on which state you are in, including where to send Form 941 without payment and Form 941 with payment:
| States | Mail return without payment | Mail return with payment |
| Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, Wisconsin | Department of the Treasury Internal Revenue Service Kansas City, MO 64999-0005 |
Internal Revenue Service PO Box 806532 Cincinnati, OH 45280-6532 |
| Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming | Department of the Treasury Internal Revenue Service Ogden, UT 84201-0005 |
Internal Revenue Service P.O. Box 932100 Louisville, KY 40293-2100 |
| No legal residence or principal place of business in any state | Internal Revenue Service PO Box 409101 Ogden, UT 84409 |
Internal Revenue Service P.O. Box 932100 Louisville, KY 40293-2100 |
Source: IRS “Where to File Your Taxes” for Form 941
When is Form 941 required to be filled out?
Form 941 is a quarterly form, meaning employers are required to file it on a quarterly basis. You must file Form 941 by the following due dates for each quarter:
- First quarter: April 30
- Second quarter: July 31
- Third quarter: October 31
- Fourth quarter: January 31
If the quarterly due dates fall on a weekend or a holiday, the form is due the next business day. To avoid penalties, submit the form and tax payments by the quarterly due dates. As you get ready to file for taxes in 2025, be sure to use the March 2024 revision of form 941 for the first quarter.
Who is required to fill out Form 941?
As a general rule, any business owner with employees must fill out Form 941. However, there are a few exceptions. You’re exempt from filling out the form in the following situations:
- You file a 944. If you’re an employer whose annual liability for withheld federal income tax, Medicare, and Social Security is less than $1,000, then you should file Form 944 annually, not quarterly.
- You are a seasonal employer. If your employees work on a seasonal basis, you don’t need to file Form 941 in quarters when employees aren’t working (i.e., in quarters when you have no tax liability). If this applies to you, however, you will need to indicate that you’re a seasonal employer when you file your Form 941.
- You have household employees. While household employees don’t need to be accounted for on Form 941, they must be filed within Schedule H of Form 1040. This section is reserved specifically for household employment taxes.
- You have farm employees. Since farm employees have distinct rules for taxes, which are different from the typical tax and withholding rules, they are required to fill out Form 943 instead of Form 941.
- You pay independent contractors. Independent contractors are technically not employees. For this reason, you should file a 1099-MISC form to report what you paid your contractors that calendar year.
What happens if Form 941 is filled out incorrectly?
As with any tax form, there’s potential for error when you’re filling out Form 941, particularly if it’s your first time filing business taxes. In the event you realize your Form 941 has errors or needs some adjustments, you can amend them using Form 941-X. Form 941-X can be used to correct both underreported and over-reported taxes.
Common errors and adjustments include:
- Reporting incorrect wages
- Reporting the incorrect number of employees
- Mistakes in calculating taxable Social Security and Medicare ages
- Incorrect or missing tax credits
- Errors in reporting federal income tax withholdings
If you have underreported taxes on a previous Form 941, the IRS allows you to fix those errors with Form 941-X, as long as it’s within three years of the date you filed incorrectly. Along with Form 941-X, you’ll need to pay taxes by the due date for the quarter when you discovered the error.
What are the differences between Form 941 and Form 940?
Form 941 is a quarterly federal tax return, so the purpose is to report income taxes, Social Security tax, and Medicare tax withheld from employee’s paychecks. These taxes are filed quarterly. Form 940, on the other hand, is used to report and pay federal unemployment taxes, also known as FUTA taxes. This form is filed annually.
While both forms involve employee-related taxes, Form 941 deals with income taxes, Social Security, and Medicare taxes, and Form 940 deals with federal unemployment taxes.
What are the differences between Form 941 and Form 944?
Form 944 differs from Form 941 in that, like Form 940, it’s filed annually. It’s also intended for smaller employers with lower tax liabilities. These liabilities are usually less than $2,500 or less per year in Social Security, Medicare, and federal income taxes. If you are an employer, you must receive approval from the IRS in writing to be eligible to file a Form 944 rather than a Form 941.
Using tools to automate your tax prep
Keeping up with quarterly tax forms can feel like a full-time job for small business owners. Square Payroll prepares and files your Form 941, and applicable state forms, electronically. Once we’ve submitted your quarterly 941, you can easily download, save, and print each filing so you have it for your records.
