As a business owner, one of your responsibilities is to file IRS Form 941, also known as the Employer’s Quarterly Federal Tax Return. This form helps the Internal Revenue Service (IRS) track the taxes you withhold from employee paychecks and other relevant tax-related information.
To help you with this task, we have created a step-by-step guide on how to write Form 941, the necessary components to include, and some standard best practices when writing the form. Also, read until the end to learn how to use a valuable secret weapon to advance your digital form creation.
Form 941: Step-By-Step Guide
1. Perform an internal information review
Before you begin filling out Form 941, make sure to have all the necessary information on hand. It concerns the number of employees you have and the total wages and tips you paid them during the quarter — in other words, payroll duties.
2. Fill out basic information
The first section of Form 941 asks for basic information about your business, such as your legal name, address, and employer identification number (EIN). Double-check that each relevant field contains the correct information before proceeding to the next section.
3. Declare employee taxes withheld
In the second section, you’ll need to provide information on the taxes you withheld from your employees’ paychecks. This data must include federal income tax, Social Security, and Medicare tax.
4. Calculate employer contributions
The third and final section requires you to calculate your portion of Social Security and Medicare taxes, plus any additional Medicare tax you may owe. This space also asks you to provide information on any deposits you made during the quarter.
5. Review and eSign the form
Before submitting Form 941, take a moment to review all the information and make sure there are no errors. Once you’re satisfied that everything is correct, sign and date the form.
You’ll have an easier time using an eSignature app like Fill. The app allows you to open and edit the Form 941 template and apply your secure electronic signature within minutes. But more on that later.
Download the IRS Form 941
Below is a preview of IRS Form 941. Use this form for free when you signup for a Fill account.
Form 941 – Employer’s QUARTERLY Federal Tax Return
Essential Elements of IRS Form 941
You must include several essential components to create a valid Form 941. These are the following:
- Employer identification number (EIN) – This is a unique nine-digit number assigned to your business by the IRS.
- Employee information – You must include the total number of employees at your business and their combined wages, tips, and other compensation paid during the quarter.
- Tax information – You need to report the total amount of taxes you withheld from employee paychecks and the total tax liability for the quarter.
- Date and signature – You must sign and date Form 941 to certify that the information provided is accurate.
Tips and Strategies When Filling out Form 941
Here are some best practices to keep in mind when writing Form 941:
- Keep accurate records – Ensure you keep authentic and untampered records of all payroll information, including wages, tips, and other employee compensation.
- Use payroll software – Consider using payroll software to help you calculate taxes and generate Form 941. Using one of these tools can save you time and reduce the risk of errors.
- Double-check your math – Make sure you confirm the correctness of all calculations to guarantee the form’s accuracy.
- File on time – Make sure you file Form 941 on time to avoid penalties and interest charges. The filing deadline is usually around the third week of April.
How Fill Can Help With Drafting Form 941
Now that you’ve learned how to create IRS Form 941 correctly, you’re ready to use an acclaimed tool for filling out tax forms.
1. Customizable templates
With Fill, you can choose from an expansive library of industry-standard document templates. The list includes tax form templates identical to what the IRS provides. Fill allows you to edit Form 941 to reflect all the steps discussed in our guide.
2. High-level security
Fill protects user data with robust features such as secure cloud storage, 256-bit encryption, and signer ID verification. These safeguards combine to give Fill users unmatched document security and data privacy.
3. Effortless eSignatures
Fill’s core technology delivers an intuitive and powerful way to sign documents online. That means you can create your eSignature, apply it electronically, and send it to your recipient — all within minutes.