Federal law requires you, as an employer, to withhold taxes from your employees’ paychecks. Each time you pay wages, you must withhold – or take out of your employees’ paychecks – certain amounts for federal income tax, social security tax, and Medicare tax. Under the withholding system, taxes withheld from your employees are credited to your employees in payment of their tax liabilities.
These instructions give you some background information about IRS Tax Form 941. They tell you who must file Form 941, how to complete it line by line, and when and where to file it.
Federal law also requires you to pay any liability for the employer’s portion of social security and Medicare taxes. This portion of social security and Medicare taxes is not withheld from employees.
After you file your first Form 941, you must file a return for each quarter, even if you have no taxes to report, unless you filed a final return or unless an exceptions applies.
If you want more in-depth information about payroll tax topics relating to Form 941, see Pub. 15 (Circular E), Employer’s Tax Guide, or visit the IRS website at www.irs.gov/businesses and click on the Employment Taxes link.