The IRS Form 941 is the Employer’s Quarterly Federal Tax Return. This is where you report the gross wages paid to employees and the Federal income tax withheld from the employee’s compensation. The 941 is also used to calculate the social security and Medicare taxes due for both the employee and the employer. This form is due the last day of the month that follows the end of the quarter.
You report on the 941 the tax deposits you have made during the quarter. If you are a new employer or a company that has a payroll with taxes of $50,000 or less, you are required to make monthly deposits. If you are an employer with more than $50,000 in taxes, you are required to be a semiweekly tax depositor.
The 941 is how you report the payroll taxes you have withheld from an employee’s pay as well as the payroll taxes you owe as an employer.