Generally, any person or business that pays wages to an employee has to file a Form 941 each quarter and needs to continue to do so even if there are no employees during some of the quarters. Exceptions to this filing requirement are for seasonal employers who don’t pay employee wages during one or more quarters, employers of household employees and employers of agricultural employees. Employers of agricultural employees typically file Form 943 instead of Form 941. Most businesses with employees have to file IRS Form 941 each quarter to report and calculate employment taxes. Some states have analogs to Form 941 that you may also have to file to report income withholdings and employer taxes at the state level. But let me help you check why you’re unable to print payroll from the client’s company file.
These credits are claimed against the employer’s share of employment taxes, but a portion of them may be refundable. Fill out line 8 if you have a third-party sick payer, such as an insurance company, that transfers the liability for the employer share of SS and Medicare https://www.bookstime.com/articles/independent-contractor-vs-employee taxes to you. Calculate third-party sick pay for the quarter and enter the total on line 8 as a negative (e.g., -$130). As the employer, you are responsible for making an additional payment to the IRS for the employer’s portion of Medicare and Social Security taxes.
Fill in Part 2 of Form 941
An employee’s annual income is no longer subject to Social Security tax after they earn above the wage base. Do not include any wages above the wage base on lines 5a-5d (including lines 5a(i) and 5a(ii)). The decimal represents the rate what is form 941 of Social Security tax on taxable wages. Both you and your employee must contribute 6.2% each paycheck for Social Security. Combined, you and your employee contribute 12.4%, which is the amount you multiply on lines 5a and 5b (0.124).
To calculate the totals for these lines correctly, break up the wages by type (e.g., regular wages or tips). The IRS is not known for straightforward fields, and this one is no exception. Enter the number of employees on your payroll for the pay period including March 12, June 12, September 12, or December 12, for the quarter indicated at the top of Form 941.