Staying on top of your tax responsibilities is key to running a successful small business, and one of the most important recurring filings you’ll handle is Form 941 (Employer’s Quarterly Federal Tax Return).
In this article, we’ll walk you through everything you need to know about Form 941—from who must file to deadlines, deposit schedules, and how to correct errors—so you can stay compliant and avoid penalties.
Understanding Form 941
Form 941 is required for most small businesses that withhold federal income tax, Social Security tax, and Medicare tax from employees’ wages. It’s used to:
- Report wages paid
- Withholdings and employer taxes
- Adjustments (such as for tips or group-term life insurance)
- And any tax deposits made during the quarter
Put simply, Form 941 gives the IRS a quarterly snapshot of your payroll activity and the taxes you’ve paid or owe.…
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