Filing For Payroll Taxes Using Form 941? Here’s How and When To Do It
Payroll reporting time seems to come up quickly on a regular basis. Form 941 is the primary payroll report and has delivered at the end of January, April, July and October. However there is a bit more involved in the payroll form.
• Form 941, what is it exactly?
• What is the best way to complete this form?
• How should you submit it?
• How do you get an extra 10 days after the due date?
We will now take a closer look:
The Reason Why My Business Has To Submit Form 941 to the IRS
What you have been paying your employees, have you been keeping back federal income taxes, Medicare and Social Security taxes?
The IRS requires that you report your withholdings, pay the required
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• Note that the Social Security rate for employer's and employee's is currently 6.2%. Every year the limit changes for Social Security wages and is the maximum yearly pay required for Social Security taxes. The 1.45% tax rate for Medicare for both employer and employee has not changed since 2013. Medicare taxes are not based on wages.
• The COBRA Premium assistance cannot be claimed on Form 941 if the effective tax period falls after December 31, 2013.
Below are the current IRS Form 914 along with the relevant instructions.
Due Dates for Form 941
Form 941 has to be submitted quarterly at the end of the month ending the quarter according to the following timeline for 2015:
• For instance, quarter one ends on March 31 and Form 941 has to be submitted by April 30
• Quarter two ends on June 30 and has to be submitted by July 31
• Quarter three ends on September 30 and must be submitted by October 31
• Quarter four ends on December 31 and submission deadline is January 31, 2016.
For due dates that fall on holidays or weekends the submission deadline is the next business day. For instance, say the deadline for a given year is July 31 and it falls on a Saturday, the payment due date will be moved to Monday, August
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• The fourth quarter ends on December 31 and must be submitted by February 10.
The Best Way to Submit Form 941
Electronic submission via Federal e-File is the best way to submit Form 941. Any outstanding payments can also be submitted electronically via software for tax preparation or via a tax expert. Find out more about filing Form 941.
Completing Form 941
The calculations totals for Form 941 include:
• Amount of employees as well as total payment for the reported period
• Withholding total from employee payments for the period
• Social Security and Medicare taxable income for the period
• Calculation total for Social Security and Medicare income
• Tips, sick pay, group-term life insurance and any additional adjustments
Total taxes are a requirement for the form along with total deposits for the period. If there is a difference between the amount of taxes due and total payments, the outstanding balance has to be settled.
Learn more about the required steps to complete Form 941.
Learn more about Form 941, such as preparation details, submission deadlines and the best way to send in updates: Click here to learn more about Form
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