IRS Payroll Taxes: Two Common Forms You Need to Understand

IRS Payroll 940 & 941 Tax Forms

irs payroll taxes Running a small business is the dream of so many Americans. Being your own boss definitely has its perks. If your business is booming, you have a lot to be proud of. However, tax matters get more complicated the more your small business grows. This is especially true if you have employees. This page will help you find out what IRS payroll taxes you need to take care of and how to file.

IRS Payroll Tax Form 941

The IRS payroll tax form 941 is used to report wages and tips paid to employees. It is also used to report the amount of Federal income, social security, and Medicare taxes that were withheld from their pay. It should be filed and paid on a quarterly basis. Special rules apply to the following situations.

Seasonal employers only have to file a form 941 for quarters they hire help.
Household employee wages are generally reported on a Form 1040 Schedule H.
Farmers generally report employee wages on IRS payroll tax form 943.

In order to complete an IRS payroll tax form 941, you will need the following information.

Your business employer identification number (EIN).
Employee, wage, tips, and withholding records.
Prior quarter IRS payroll tax forms.
Deposit schedule information (monthly or semiweekly).

IRS Payroll Tax Form 940

The IRS payroll tax form 940 is used to report FUTA tax for unemployment compensation. This IRS payroll tax is filed and paid annually. You must file an IRS payroll tax form 940, if you either of these situations applies to you.

At least $1,500 in wages was paid to employees for any quarter in the last two years.
Employee(s) worked at least part of a day 20 or more weeks in either of the last 2 years.

In order to complete an IRS payroll tax form 940, you will need the following information.

Your business employer identification number (EIN).
State unemployment tax information & prior year 940s.
Employee payments and FUTA tax withheld from wages.
Benefits, insurance, retirement, and other non-taxes withheld.
Breakdown of quarterly tax liability.
Payment and deposit information.

Make sure you send all of your IRS payroll tax forms to the correct address. Sending it to the wrong address is as good as not doing it at all. Fortunately, it is easy to find the right IRS mailing address online.

If you need help filing and paying IRS payroll taxes, consult a professional. Call (800) 590-4524 now or fill out the form below for a free tax debt consultation and get expert help with IRS payroll taxes! We'll only connect you with a tax debt relief company holding at least a B rating with the Better Business Bureau.

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