What IRS Form 941 (2019) Is For

IRS Form 941 (2019) is the Employer’s Quarterly Federal Tax Return used to report income taxes, Social Security taxes, and Medicare taxes withheld from employee wages. Employers use this tax form to report income tax withheld and their share of employment taxes for each quarter. Both the employer and employee contribute to Social Security and Medicare taxes on wages paid, including taxable Social Security wages, sick pay, and taxable fringe benefits. Agricultural employers and household employees who pay wages subject to federal income tax withholding must file quarterly.

When You’d Use Form 941 for 2019

Employers should file Form 941 for any quarter in 2019 when they paid wages subject to federal income tax withholding, Social Security tax, or Medicare tax. You must file even if you stopped paying wages or had no employees for the quarter, unless you qualify as a seasonal employer. Errors in previously filed form data or missed employment tax deposits may result in late or amended filings. Employers correcting past returns should use an amended form, such as Form 941-X, to report adjustments for income tax or Medicare tax withholding.

Key Rules or Details for 2019

• 2019 Tax Rates and Limits: The Medicare tax rate was 1.45% for both the employer and employee, with no wage base limit. The Social Security tax rate was 6.2% on taxable wages up to $132,900.
  
  
• Additional Medicare Tax: An additional Medicare tax of 0.9% applies to employees’ wages exceeding $200,000. Employers were responsible for withholding the additional Medicare tax but not for paying it themselves.
  
  
• Filing Schedule: Employers must file Form 941 quarterly—first quarter, second quarter, third quarter, and fourth quarter—by the due date following each period unless it falls on a legal holiday or weekend.
  
  
• Valid Employer Identification Number: A valid employer identification number must be used on every Form 941 to avoid processing delays and ensure the correct posting of payroll tax liabilities.
  
  
• Electronic Filing Options: Businesses could file their federal tax returns by paper through the postal service or electronically through authorized electronic filing to submit them directly to the United States Treasury.
  
  
• Employer’s Responsibility: Both the employer and tax preparer are responsible for verifying employee wages and total taxes and ensuring the current quarter’s adjustments are properly recorded before submission.
  
  

Step-by-Step (High Level)

Step 1: Gather Your Records

Collect payroll records, employee wage details, and total wages paid. Include information on federal income tax withheld, taxable Social Security tips, and Medicare wages.

Step 2: Complete the Correct Form

Use the 2019 Form 941 for each particular quarter. Select the appropriate box for the quarter and accurately report income tax, Social Security tax, and Medicare tax.

Step 3: Calculate Accurately

Determine total taxes by adding federal income tax withheld, Social Security taxes, and Medicare taxes. Confirm that employment tax deposits and tax payments match the reported payroll taxes.

Step 4: Attach Required Schedules

Schedule B for semiweekly depositors and any required attachments for life insurance benefits or other compensation. Verify that the adjustments for the current quarter are included in the filing.

Step 5: File and Keep Copies

Mail or electronically file Form 941 with your business address and employer identification number. Keep signed copies and proof of all tax deposits for each tax year.

Common Mistakes and How to Avoid Them

• Using the Wrong Year’s Form: Always file the correct IRS Form 019, as wage bases, Medicare tax rates, and Social Security limits vary each tax year.
  
  
• Incorrect EIN: Ensure your employer identification number is valid and consistent across all tax returns to prevent rejected filings or delayed processing.
  
  
• Math Errors in Payroll Tax Liability: Recheck all payroll taxes and total tax amounts, including income tax withheld, Medicare tax, and Social Security taxes.
  
  
• Wrong Filing Address: If filing falls on a legal holiday or business day variation, confirm the correct mailing address or use electronic filing to avoid delays.
  
  
• Missing Signatures or Attachments: Ensure the tax preparer and paid preparer sign each form and include any required schedules, such as group term life insurance or the current quarter’s adjustments.
  
  
• Failure to Report All Employee Wages: To avoid underreporting penalties, include all employees’ salaries, taxable Social Security wages, qualified sick pay, and taxable fringe benefits on the form.
  
  

What Happens After You File

After submitting your federal tax return, the IRS will process paper filing submissions within several weeks, while electronic filing provides faster confirmation. Employers may receive IRS notices if an employee’s wages or total taxes do not align with employment tax deposits. If a balance due remains, businesses can pay online, apply for installment agreements, or contact the United States Treasury for payment assistance. The IRS may issue penalties for inaccurate employment taxes, but reasonable cause abatement may apply for first-time errors. Always keep copies of filed returns, employment tax records, and correspondence for future verification.

FAQs

How late can I file my return on IRS Form 941 (2019)?

There is no absolute cutoff for late filings, but penalties and interest continue to accrue until you submit your return and pay all payroll tax liability.

Can I file Form 941 if I already submitted a previously filed form with errors?

Yes, you must use Form 941-X to correct information from one or more quarters, ensuring the proper adjustment of total wages, income tax withholding, and Medicare tax.

When should I file Form 941 for the current quarter’s adjustments to employment tax deposits?

File quarterly after each period ends, reporting the current quarter’s adjustments accurately to maintain compliance and prevent discrepancies in total tax liability.

How do I report income tax withholding and additional Medicare tax withholding on my federal tax return?

Report income tax withheld on Form 941 in the correct sections, and include additional Medicare tax withheld when employee wages exceed the threshold for the tax year.

Are agricultural employers required to file Form 941 for employment tax?

Most agricultural employers file a separate Form 941, but must also use it if they pay wages subject to federal income taxes.

What should I do if my filing falls on a legal holiday or weekend business day?

If the due date falls on a legal holiday or weekend, file on the next business day to avoid late-filing penalties under federal income tax rules.

Can I file my employer’s quarterly federal tax return electronically?

The IRS encourages electronic filing for accuracy and speed. Taxpayers can submit their employer’s quarterly federal tax return using IRS-approved providers or a paid preparer.