At the end of every quarter, employers must submit an IRS 941 form to the government to report their payroll taxes, which are the withheld federal income taxes, the employee/employer Social Security shares and Medicare taxes. The IRS 941 form also reports any adjustments to Social Security and Medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance from the current quarter, as well as the prior adjustments to the payroll taxes. It is very important for employers to submit these forms. Unfiled tax returns can lead to many undesirable consequences, such as IRS tax audits.
For the quarter ending on March 31, the IRS 941 forms must be submitted by April 30 or May 10 with an extended due date. For the quarter ending on June 30 the forms must be submitted by July 31 or August 10 with an extension, and for the quarter ending on September 30 they must be submitted by October 31 or November 10 with the extended due date. The last quarter, which ends on December 31, has an IRS 941 due date of January 31 or February 10 with an extension.
It's important to remember that IRS 941 forms cannot be used to report backup withholdings or income tax withholdings on payments not related to payroll, including pensions, annuities and gambling winnings. The only things that are required to be reported on this specific form are the withheld federal income taxes, one half of the Social Security taxes and one half of the Medicare taxes. When the employer's shares of the Social Security and Medicare taxes are combined with the employees' shares of the Social Security and Medicare taxes, they are collectively known as the FICA tax.
Depending on what state the employer is located in, they may also be required to withhold state income tax, or even county or city income tax. The employer is required to pay state and federal unemployment tax, as well. The consequences for unfiled tax returns and unpaid debts are serious, and it is often in the best interest of the employer to get business tax relief assistance if they are having trouble keeping track and figuring everything out.