Form 941-SS - Employer's Quarterly Federal Tax Return; American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands

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Instructions for Form 941-SS

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Instructions for
Form 941-SS
(Rev. October 2008)

Department of the Treasury
Internal Revenue Service
Currently, taxpayers make corrections to previously filed Form 941-SS using the adjustment lines on Form 941-SS for the year in which the error was discovered and
attaching Form 941c, Supporting Statement to Correct Information. Adjustment lines 7e and 7g will be deleted from Form 941-SS beginning with the first calendar
quarter of 2009. Adjustments currently made on those lines will be made by filing the new Form 941-X and Form 941c will no longer be used. Form 941-X is a
stand-alone form, meaning taxpayers can file Form 941-X when an error is discovered, rather than waiting until the end of the quarter to file with Form 941-SS.

Employer’s QUARTERLY Federal Tax Return—American Samoa, Guam, the
Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands
Section references are to the Internal Revenue Code unless
otherwise noted.

What’s New
Paid preparers must sign Form 941-SS. The paid
preparer’s section of Form 941-SS is no longer optional and
is included in Part 5 of Form 941-SS. See Paid preparers on
page 7.
Social security wage base for 2008. Do not withhold
social security tax after an employee reaches $102,000 in
social security wages. There is no limit on the amount of
wages subject to Medicare tax.
Social security wage base for 2009. The wage base for
2009 is $106,800.
New employment tax adjustment process in 2009. If you
discover an error on a previously filed Form 941-SS after
December 31, 2008, make the correction using new Form
941-X, Adjusted Employer’s QUARTERLY Federal Tax
Return or Claim for Refund. Currently, taxpayers make
corrections to Form 941-SS using Form 941c that is filed
quarterly with Form 941-SS. Form 941-X is a stand-alone
form, meaning taxpayers can file Form 941-X when an error
is discovered, rather than waiting until the end of the quarter
to file Form 941c with Form 941-SS. Lines 7e and 7g will be
deleted from Form 941-SS, beginning with the first calendar
quarter of 2009. Adjustments now made on those lines will
be made on the new Form 941-X. For more information, visit
the IRS website at www.irs.gov.
Disregarded entities and qualified subchapter S
subsidiaries (QSubs). The IRS has published final
regulations (Treasury Decision 9356) under which QSubs
and eligible single-owner disregarded entities are treated as
separate entities for employment tax purposes. The final
regulations do not apply until January 1, 2009. For more
information, see Disregarded entities and qualified
subchapter S subsidiaries in the introduction to
Publication 15 (Circular E), Employer’s Tax Guide.

Reminders
Annual employment tax filing for small employers.
Certain small employers must file Form 944-SS, Employer’s
ANNUAL Federal Tax Return, rather than Form 941-SS,
Employer’s QUARTERLY Federal Tax Return, to report their
employment taxes. The IRS will notify employers who must
file Form 944-SS in February of each year. For more
information, get the Instructions for Form 944-SS.
Correcting Form 941-SS. If you discover an error in 2008
on a previously filed Form 941-SS, make the correction
using Form 941-SS for the quarter in which you discovered
the error and attach Form 941c, Supporting Statement to
Correct Information. For example, in October 2008, you
discover that you underreported $10,000 in social security
and Medicare wages on your 2007 fourth quarter Form
941-SS. Correct the error by showing $1,530 (15.3% ×
$10,000) on line 7e of your 2008 fourth quarter Form

941-SS and attaching a completed Form 941c. Be sure to
include the $1,530 in any required deposit.
Electronic filing and payments. Now, more than ever
before, businesses can enjoy the benefits of filing and
paying their federal taxes electronically. Whether you rely on
a tax professional or handle your own taxes, IRS offers you
convenient programs to make filing and paying easier.
Spend less time and worry on taxes and more time running
your business. Use e-file and the Electronic Federal Tax
Payment System (EFTPS) to your benefit.
U.S.
• For e-file, visit www.irs.gov for additional information.
• For EFTPS, visit www.eftps.gov or call EFTPS Customer
Service at 1-800-555-4477 (Virgin Islands only),
1-800-650-3345 (international), 303-967-5916 (toll call), or
1-800-733-4829 (TDD).
delete
Electronic funds withdrawal (EFW). If you file Form
941-SS electronically, you can e-file and e-pay (electronic
funds withdrawal) the balance due in a single step using tax
preparation software or through a tax professional.
However, do not use EFW to make federal tax deposits. For
more information on paying your taxes using EFW, visit the
IRS website at www.irs.gov and click on the electronic IRS
link. A fee may be charged to file electronically.
Credit card payments. Employers can pay the balance
due shown on Form 941-SS by credit card. Do not use a
credit card to make federal tax deposits. For more
information on paying your taxes with a credit card, visit the
IRS website at www.irs.gov and click on the electronic IRS
link.
d
Employer’s liability. Employers are responsible to ensure
that tax returns are filed and deposits and payments are
made, even if the employer contracts with a third-party. The
employer remains liable if the third party fails to perform a
required action.
Where can you get telephone help? You can call the IRS
toll free at 1-800-829-4933 (U.S. Virgin Islands only) or
215-516-2000 (toll call) to order tax deposit coupons (Form
8109) and for answers to your questions about completing
Form 941-SS, tax deposit rules, or obtaining an employer
identification number (EIN).
Photographs of missing children. The Internal Revenue
Service is a proud partner with the National Center for
Missing and Exploited Children. Photographs of missing
children selected by the Center may appear in instructions
on pages that would otherwise be blank. You can help bring
these children home by looking at the photographs and
calling 1-800-THE-LOST (1-800-843-5678) if you recognize
a child.

General Instructions:
Purpose of Form 941-SS
Use Form 941-SS, Employer’s QUARTERLY Federal Tax
Return, to report social security and Medicare taxes for

Cat. No. 35530F

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workers in American Samoa, Guam, the Commonwealth of
the Northern Mariana Islands, and the U.S. Virgin Islands.

When Must You File?

Pub. 80 (Circular SS), Federal Tax Guide for Employers
in the U.S. Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands, explains
the requirements for withholding, depositing, and paying
social security and Medicare taxes. It explains the forms you
must give your employees, those your employees must give
you, and those you must send to the IRS. See Pub. 15-A,
Employer’s Supplemental Tax Guide, for specialized
employment tax information supplementing the basic
information provided in Pub. 80 (Circular SS).

File Form 941-SS for each quarter of the calendar year, as
follows:
Quarter

Due Date

Jan.-Feb.-Mar.
Apr.-May-June
July-Aug.-Sept.
Oct.-Nov.-Dec.

April 30
July 31
Oct. 31
Jan. 31

If you made deposits on time in full payment of the taxes
for a quarter, you have 10 more calendar days after the
above due dates to file your return for that quarter. If the due
date for filing a return falls on a Saturday, Sunday, or legal
holiday, you may file the return on the next business day.
If we receive Form 941-SS after the due date, we will
treat Form 941-SS as filed on time if the envelope
containing Form 941-SS is properly addressed, contains
sufficient postage, and is postmarked by the U.S. Postal
Service on or before the due date, or sent by an
IRS-designated private delivery service on or before the due
date. If you do not follow these guidelines, we will consider
Form 941-SS filed when it is actually received. See Pub. 80
(Circular SS) for more information on IRS-designated private
delivery services.

Who Must File Form 941-SS?
Generally, you must file a return for the first quarter in which
you pay wages subject to social security and Medicare
taxes, and for each quarter thereafter until you file a final
return. Use Form 941-SS if your principal place of business
is in American Samoa, Guam, the Commonwealth of the
Northern Mariana Islands, or the U.S. Virgin Islands, or if
you have employees who are subject to income tax
withholding for these jurisdictions.
Once you have filed a return, a preaddressed Form
941-SS will be sent to you every 3 months. You must file a
return each quarter, even if you have no tax liability to report
unless you file a final return. However, see Seasonal
Employers and Agricultural and Household Employers
below. If the form fails to reach you, request one in time to
file. See Where Can You Obtain Forms? on page 2.

Where Should You File?
Mail Form 941-SS to:

Seasonal Employers
Seasonal employers are not required to file for quarters
when they regularly have no tax liability because they have
paid no wages. To alert the IRS that you will not have to file
a return for one or more quarters during the year, check the
box in line 17 on Form 941-SS. The IRS will mail you two
Forms 941-SS once a year after March 1. The preprinted
information will not include the date the quarter ended. You
must enter the date the quarter ended when you file the
return. The IRS generally will not inquire about unfiled
returns if at least one taxable return is filed each year.
However, you must check the box in line 17 on every
quarterly return you file. Otherwise, the IRS will expect a
return to be filed for each quarter.

Form 941-SS with payment

Form 941-SS without payment

Internal Revenue Service
P.O. Box 105273
Atlanta, GA 30348-5273

Internal Revenue Service
P.O. Box 409101
Ogden, UT 84409

Where Can You Obtain Forms?
See Pub. 80 (Circular SS) for information on ordering IRS
forms by telephone, mail, or online. You may also be able to
get some IRS forms at the addresses listed below.
American Samoa. Department of Treasury, Income Tax
Division, Government of American Samoa, Executive Office
Bldg., First Floor, Pago Pago, AS 96799.
Commonwealth of the Northern Mariana Islands.
Administrator, CNMI Social Security System, Saipan,
MP 96960.
Guam. Department of Revenue and Taxation,
Government of Guam, Building 13-1 Mariner Avenue, Tiyjan
Barrigada, GU 96913.
U.S. Virgin Islands. V.I. Bureau of Internal Revenue,
9601 Estate Thomas, Charlotte Amalie, St. Thomas, VI
00802.

Final Return
If you go out of business or stop paying wages to your
employees, you must file a final return. To tell the IRS that
Form 941-SS for a particular quarter is your final return,
check the box on line 16 and enter the date you last paid
wages. Also attach a statement to your return showing the
name of the person keeping the payroll records and the
address where those records will be kept.

How Should You Complete
Form 941-SS?

See the Instructions for Form W-3SS for information
about earlier dates for the expedited furnishing and filing of
Forms W-2AS, W-2CM, W-2GU, or W-2VI when a final
Form 941-SS is filed.

Preprinted Name and Address Information

Agricultural and Household
Employers

If your preprinted name, EIN, or address information on
Form 941-SS is not correct, cross it out and type or print the
correct information. However, do not change any of the
preprinted information on your Form 941-V(SS), Payment
Voucher.

Agricultural employers. Agricultural wages must be
reported on Form 943, Employer’s Annual Federal Tax
Return for Agricultural Employees, not on Form 941-SS.

Employer identification number (EIN)

Household employers. Employers who report wages for
household employees should see Pub. 80 (Circular SS) and
Pub. 926, Household Employer’s Tax Guide.

To make sure that businesses comply with federal tax laws,
the IRS monitors tax filings and payments by using a

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numerical system to identify taxpayers. A unique 9-digit
employer identification number (EIN) is assigned to all
corporations, partnerships, and some sole proprietors.
Businesses needing an EIN must apply for a number and
use it throughout the life of the business on all tax returns,
payments, and reports.

Penalties and interest are charged on taxes paid late
and returns filed late at a rate set by law. See section 8 of
Pub. 80 (Circular SS) for details.
A trust fund recovery penalty may apply if social
security and Medicare taxes that must be withheld
CAUTION are not withheld or are not paid. Under this penalty,
responsible persons become personally liable for payment
of the taxes and are penalized an amount equal to the
unpaid taxes. A responsible person can be an officer or
employee of a corporation, a partner or employee of a
partnership, an accountant, a volunteer director/trustee, an
employee of a sole proprietorship, or any other person or
entity that is responsible for collecting, accounting for, and
paying over trust fund taxes. See section 8 of Pub. 80
(Circular SS) for details.

!

Your business should have only one EIN. If you have
more than one and are not sure which one to use, write to
the IRS office where you file your returns (using the “Form
941-SS without payment” address on page 2) or call the IRS
at 1-800-829-4933 (U.S. Virgin Islands only) or
215-516-6999 (toll call). TTY/TDD users in the U.S. Virgin
Islands can call 1-800-829-4059.
If you do not have an EIN, you may apply for one online.
Go to the IRS website at www.irs.gov and click on the More
Online Tools link, then the Online Employer Identification
Number (EIN) link. You may also apply for an EIN by calling
1-800-829-4933 (U.S. Virgin Islands) or 215-516-6999 (toll
call), or you can fax or mail Form SS-4 to the IRS. If you
have applied for an EIN but do not have your EIN by the
time a return is due, write “Applied For” and the date you
applied in the space shown for the number.

Reconciling Forms 941-SS and W-3SS
The IRS matches amounts reported on your four quarterly
Forms 941-SS with Form W-2AS, W-2CM, W-2GU, or
W-2VI amounts totaled on your yearly Form W-3SS,
Transmittal of Wage and Tax Statements. If the amounts do
not agree, you may be contacted by the IRS or SSA. The
following amounts are reconciled.

Always be sure the EIN on the form you file exactly

• Social security wages.
• Social security tips.
• Medicare wages and tips.

TIP matches the EIN the IRS assigned to your business.
Do not use your social security number on forms that
ask for an EIN. Filing a Form 941-SS with an incorrect EIN
or using another business’s EIN may result in penalties and
delays in processing your return.

Use Schedule D (Form 941), Report of Discrepancies
Caused by Acquisitions, Statutory Mergers, or
Consolidations, to explain certain wage, tax, and payment
discrepancies between Forms 941-SS and Forms W-2AS,
W-2CM, W-2GU, W-2VI, W-3SS, and W-2c that were
caused by acquisitions, statutory mergers, or consolidations.
For more information, get the instructions for Schedule D
(Form 941). Also see Rev. Proc. 2004-53 for more
information. You can find Rev. Proc. 2004-53 on page 320
of Internal Revenue Bulletin 2004-34 at
www.irs.gov/pub/irs-irbs/irb04-34.pdf.

Check the Box for the Quarter
Under Report for this Quarter of 2008 at the top of Form
941-SS, check the appropriate box of the quarter for which
you are filing. Make sure the quarter checked is the same as
shown on any attached Schedule B (Form 941), Report of
Tax Liability for Semiweekly Schedule Depositors.

Completing and Filing Form 941-SS
Make entries on Form 941-SS as follows to enable accurate
processing.
• Use 12-point Courier font (if possible) for all entries if you
are typing or using a computer to fill out your form.
• Omit dollar signs and decimal points. Commas are
optional. Report dollars to the left of the preprinted decimal
point and cents to the right of it.
• Leave blank any data field (except lines 1 or 8) with a
value of zero.
• Enter negative amounts using a minus sign (if possible).
Otherwise, use parentheses.
• Enter your name and EIN on all pages and attachments.
Filers using the IRS-preaddressed Form 941-SS do not
have to enter their name and EIN on page 2.
• Staple multiple sheets in the upper left corner when filing.

Adjustment of Tax on Tips
If, by the 10th of the month after the month you received an
employee’s report on tips, you do not have enough
employee funds available to withhold the employee’s share
of social security and Medicare taxes, you no longer have to
collect it. Report the entire amount of these tips on lines 5b
(Taxable social security tips) and 5c (Taxable Medicare
wages and tips). Include as an adjustment on line 7c the
total uncollected employee share of the social security and
Medicare taxes.

Depositing Your Taxes:
When Must You Deposit Your Taxes?

What About Penalties and Interest?
Determine if you are a monthly or
semiweekly schedule depositor for the
quarter.

Avoiding penalties and interest
You can avoid paying penalties and interest if you do all of
the following.
• Deposit or pay your taxes when they are due, using
EFTPS if required.
• File your fully completed Form 941-SS on time.
• Report your tax liability accurately.
• Submit valid checks for tax payments.
• Furnish accurate Forms W-2AS, W-2CM, W-2GU, or
W-2VI to employees.
• File Form W-3SS and Copies A of Form W-2AS,
W-2CM,W-2GU, or W-2VI with the Social Security
Administration (SSA) on time and accurately.

The IRS uses two different sets of deposit rules to determine
when businesses must deposit their social security, and
Medicare taxes. These schedules tell you when a deposit is
due after you have a payday.
Your deposit schedule is not determined by how often
you pay your employees. Your deposit schedule depends on
the total tax liability you reported on Form 941-SS during the
previous four-quarter lookback period (July 1 of the second
preceding calendar year through June 30 of last year). See
section 8 of Pub. 80 (Circular SS) for details.

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Before the beginning of each calendar year, determine
which type of deposit schedule you must use. If you
reported:
• $50,000 or less in taxes during the lookback period, you
are a monthly schedule depositor. Check the appropriate
box on line 15 and, if your tax liability for the quarter was
$2,500 or more, fill out the tax liability for each month in the
quarter.
• more than $50,000 of taxes for the lookback period, you
are a semiweekly schedule depositor. Check the
appropriate box on line 15 and, if your tax liability for the
quarter was $2,500 or more, fill out Schedule B (Form 941)
and attach it to Form 941-SS when you submit it.

If you enter “250” or more on line 1, you must file

TIP Forms W-2 electronically. For details, call the SSA at
1-800-772-6270 or visit SSA’s Employer W-2 Filing
Instructions & Information website at
www.socialsecurity.gov/employer.

4. If no wages, tips, and other
compensation are subject to social security
or Medicare tax . . .
If no wages, tips, and compensation are subject to social
security or Medicare tax, check the box on line 4. If this
question does not apply to you, leave the box blank. For
more information about exempt wages, see section 12 of
Pub. 80 (Circular SS) and section 4 of Pub. 15-A.

See $100,000 Next-Day Deposit Rule in section 8 of

TIP Pub. 80 (Circular SS) if you have taxes of $100,000

If you are a government employer, wages you pay
are not automatically exempt from social security
CAUTION and Medicare taxes. Your employees may be
covered by law or by a voluntary Section 218 Agreement
with the SSA. For more information, see Pub. 963,
Federal-State Reference Guide.

!

or more accumulated on any day during the deposit
period.

How Must You Deposit Your Taxes?
You may have to deposit both the employer and employee
social security taxes and Medicare taxes. If your total taxes
after adjustments (line 8) are:
• Less than $2,500 for the quarter. You do not have to
make a deposit. To avoid a penalty, you must pay the
amount in full with a timely filed return or you must deposit
the amount timely. However, if you are unsure that your
taxes will be less than $2,500 for the quarter, deposit your
taxes using the appropriate rules (above) to avoid failure to
deposit penalties.
• $2,500 or more for the quarter. You must deposit your
taxes by using EFTPS or by depositing them at a financial
institution that is authorized to accept federal tax deposits
(that is, authorized depository) with Form 8109, Federal Tax
Deposit Coupon. See section 8 of Pub. 80 (Circular SS).

5. Taxable social security and Medicare
wages and tips
5a. Taxable social security wages. Report the total
wages, sick pay, and fringe benefits subject to social
security taxes that you paid to your employees during the
quarter. For this purpose, sick pay includes payments made
by an insurance company to your employees for which you
received timely notice from the insurance company. See
section 6 in Pub. 15-A for more information about sick pay
reporting.
Enter the amount before deductions. Do not include tips
on this line. For information on types of wages subject to
social security taxes, see section 4 of Pub. 80 (Circular SS).
The rate of social security tax on taxable wages is 6.2
percent (.062) each for the employer and employee or 12.4
percent (.124) for both. Stop paying social security tax on
and reporting an employee’s wages on line 5a when the
employee’s taxable wages (including tips) reach $102,000
during 2008. However, continue to withhold Medicare taxes
for the whole year on wages and tips even when the social
security wage base of $102,000 has been reached.

EFTPS is an easy, safe, and convenient way for all

TIP employers to make their tax deposits. Using EFTPS
helps eliminate errors commonly made on federal tax
deposit (FTD) coupons. Some taxpayers are required to
use EFTPS to deposit their taxes. See section 8 of
Pub. 80 (Circular SS) for details.

x

Specific Instructions:

line 5a (column 1)
.124
line 5a (column 2)

5b. Taxable social security tips. Enter all tips your
employees reported to you during the quarter until the total
of the tips and wages for an employee reach $102,000 in
2008. Do this even if you were unable to withhold the
employee tax of 6.2%.
An employee must report cash tips to you, including tips
you paid the employee for charge customers, totaling $20 or
more in a month by the 10th of the next month. Employees
may use Form 4070, Employee’s Report of Tips to
Employer, or submit a written statement or electronic tip
record.
Do not include allocated tips on this line. Instead, report
them on Form 8027, Employer’s Annual Information Return
of Tip Income and Allocated Tips. Allocated tips are not
reportable on Form 941-SS and are not subject to social
security or Medicare taxes.

Part 1: Answer these questions for
this quarter.
Employers in American Samoa, Guam, the Commonwealth
of the Northern Mariana Islands, and the U.S. Virgin Islands
are not required to complete lines 2, 3, 6, 7d, 7f, 9, 10,
and 14.

1. Number of employees who received
wages, tips, or other compensation for the
pay period including:
Enter the number of employees on your payroll for the pay
period including March 12, June 12, September 12, or
December 12 for the quarter indicated at the top of the
return. Do not include:
• household employees,
• employees in nonpay status for the pay period,
• farm employees,
• pensioners, or
• active members of the Armed Forces.

x

line 5b (column 1)
.124
line 5b (column 2)

5c. Taxable Medicare wages and tips. Report all
wages, tips, sick pay, and taxable fringe benefits that are

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subject to Medicare tax. Unlike social security wages, there
is no limit on the amount of wages subject to Medicare tax.

Form 941c is not an amended return but is a statement
providing the necessary information and certifications for
adjustments shown on lines 7e and 7g. Do not file Form
941c separately from Form 941-SS. See also section 9 of
Pub. 80 (Circular SS).

Include all tips your employees reported during the
quarter, even if you were unable to withhold the employee
tax of 1.45%.

For errors discovered after 2008, make corrections
to a previously filed Form 941-SS on Form 941-X.
CAUTION Lines 7e and 7g will be deleted from the 2009 Form
941-SS.
7e. Prior quarters’ social security and Medicare
taxes. Enter adjustments for prior quarters’ social security
and Medicare taxes. For example, if you made a mistake
when reporting social security and Medicare taxes on
previously filed Forms 941-SS, adjust it here. If you need to
report both an underpayment and an overpayment, show
only the net difference.

line 5c (column 1)
x .029
line 5c (column 2)

!

For more information, see sections 4, 5, and 7 of Pub. 80
(Circular SS).
5d. Total social security and Medicare taxes. Add
social security tax, social security tips tax, and Medicare tax.
line 5a(column 2)
line 5b(column 2)
+ line 5c(column 2)
line 5d

If you are adjusting an employee’s social security

TIP wages, social security tips, or Medicare wages and
tips for a prior year, you must also file Form W-2c,
Corrected Wage and Tax Statement, and Form W-3c,
Transmittal of Corrected Wage and Tax Statements.
7g. Special additions to social security and
Medicare. This line is reserved for employers with special
circumstances. Use this line only if the IRS has sent you a
notice instructing you to do so. You must attach Form 941c
explaining the tax increase.
7h. Total adjustments. Combine all adjustments
shown on lines 7a, b, c, e, and 7g and enter the result here.

7. TAX ADJUSTMENTS
Enter tax amounts on lines 7a, b, c, e, and 7g that result
from current or prior period adjustments. Use a minus sign
(if possible) to show an adjustment that decreases the total
taxes shown on line 5d, instead of parentheses. Doing so
enhances the accuracy of our scanning software. For
example, report ‘‘-10.59’’ instead of ‘‘(10.59).’’ However, if
your software only allows for parentheses in reporting
negative amounts, you may use them. Do not enter an
amount on line 7g unless the IRS has sent you a notice
instructing you to do so.
Current period adjustments. In certain cases, you must
adjust the amounts you reported as social security and
Medicare taxes in column 2 of lines 5a, 5b, and 5c to figure
your correct tax liability for this quarter’s Form 941-SS. See
section 8 of Pub. 80 (Circular SS). Do not attach Form 941c
or an equivalent statement for current period adjustments.

8.

Total taxes after adjustments

Combine the amounts shown on lines 5d and 7h and enter
the result here.
• If line 8 is less than $2,500, you may pay the amount
with Form 941-SS or you may deposit the amount. To avoid
a penalty, you must pay the amount in full with a timely filed
return or you must deposit the amount timely. See section 8
of Pub. 80 (Circular SS) for information and rules about
federal tax deposits.
• If line 8 is $2,500 or more, you must deposit the amount
by using the Electronic Federal Tax Payment System
(EFTPS) or at an authorized financial institution with Form
8109. The amount shown on line 8 must equal the “Total
liability for quarter” shown on Form 941-SS, line 15 or the
“Total liability for the quarter” shown on Schedule B (Form
941).

If you need to adjust any amount previously reported on
lines 7a – 7c, use line 7e to report the adjustment and attach
Form 941c or an equivalent statement with an explanation.
7a. Current quarter’s fractions of cents. Enter
adjustments for fractions of cents (due to rounding) relating
to the employee share of social security and Medicare taxes
withheld. The employee share (one-half) of amounts shown
in column 2 of lines 5a – 5c may differ slightly from amounts
actually withheld from employees’ paychecks due to the
rounding of social security and Medicare taxes based on
statutory rates.
7b. Current quarter’s sick pay. Enter the adjustment
for the employee share of social security and Medicare
taxes that were withheld by your third-party sick pay payer.
7c. Current quarter’s adjustments for tips and
group-term life insurance. Enter adjustments for:
• any uncollected employee share of social security and
Medicare taxes on tips and
• the uncollected employee share of social security and
Medicare taxes on group-term life insurance premiums paid
for former employees.
Prior period adjustments. Use lines 7e and 7g to adjust
amounts reported on previous returns. If you need to
report both an increase and a decrease for the same line,
show only the difference.

If you are a semiweekly depositor, you must
complete Schedule B (Form 941). If you fail to
CAUTION complete and submit Schedule B (Form 941), IRS
will assert deposit penalties based on available information.

!

11. Total deposits for this quarter...
Enter your deposits for this quarter, including any deposits
that you were required to make to cover prior period
liabilities resulting from adjustments shown on line 7. Also
include in the amount shown any overpayment from a
previous period that you applied to this return.

12. Balance Due
If line 8 is more than line 11, write the difference in line 12.
d
Otherwise, see Overpayment below.
You do not have to pay if line 12 is under $1.
Generally, you should have a balance due only if your total
taxes for the quarter (line 8) are less than $2,500. However,
see section 8 of Pub. 80 (Circular SS) for information about
payments made under the Accuracy of Deposits Rule.
You may pay the amount shown on line 12 using EFTPS,
a credit card, a check or money order, or electronic funds
withdrawl (EFW). Do not use a credit card or EFW to pay

Adjustments you report here change your tax liability and
your tax deposits. You will have to take these adjustments
into account on line 15 as Tax liability: Month 1; Month 2;
Month 3 or on Schedule B (Form 941). You must explain
any prior period adjustments that you make on Form
941c or in an equivalent statement.

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Instructions for Form 941-SS

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

taxes that were required to be deposited. For more
information on paying your taxes with a credit card or EFW
visit the IRS website at www.irs.gov and click on the
electronic IRS link.

This is a summary of your monthly tax liability, not a
summary of deposits you made. If you do not
CAUTION properly report your liabilities when required or if you
are a semiweekly schedule depositor and report your
liabilities on line 15 instead of on Schedule B (Form 941),
you may be assessed an “averaged” failure-to-deposit (FTD)
penalty. See Deposit Penalties in section 8 of Pub. 80
(Circular SS) for more information.
• If you reported more than $50,000 of taxes for the
lookback period (see above), you are a semiweekly
schedule depositor. Check the appropriate box on line 15.
You must complete the Schedule B (Form 941) and
submit it with your Form 941-SS. Do not use Schedule B
(Form 941) if you are a monthly schedule depositor.

!

If you pay by EFTPS or credit card, file your return using
the “Form 941-SS without payment” address on page 2
under Where Should You File? and do not file Form
941-V(SS), Payment Voucher.
If you pay by check or money order, make it payable to
the United States Treasury. Enter your EIN, Form 941-SS,
and the tax period on your check or money order. Complete
Form 941-V(SS) and enclose with Form 941-SS.
If line 8 is $2,500 or more and you have deposited all
taxes when due, the balance due on line 12 should be zero.

Reporting adjustments on line 15. If your tax liability for
any month is negative (for example, if you are adjusting an
overreported liability in a prior period), do not enter a
negative amount for the month. Instead, enter zero for the
month and subtract that negative amount from your tax
liability for the next month.

d

!

CAUTION

If you do not deposit as required and instead pay the
taxes with Form 941-SS, you may be subject to a
penalty.

13. Overpayment
If line 11 is more than line 8, write the difference in line 13.
Never make an entry in both lines 12 and 13.

Here’s an example:
Pine Co. discovered on February 6, 2008, that it
overreported social security tax on a prior quarter return by
$2,500. Its Form 941-SS taxes for the first quarter of 2008
were:

If you deposited more than the correct amount for a
quarter, you can choose to have the IRS either refund the
overpayment or apply it to your next return. Check the
appropriate box in line 13. If you do not check either box, we
will automatically refund the overpayment. We may apply
your overpayment to any past due tax account that is shown
in our records under your EIN.

January =
February =
March =

$2,000
$2,000
$2,000

Pine Co. reports liabilities on line 15 as follows:

If line 13 is under $1, we will send a refund or apply it to
your next return only if you ask us in writing to do so.

Month 1 =
Month 2 =
Month 3 =
Total

Complete both pages.
You must complete both pages of Form 941-SS and sign on
page 2. Failure to do so may delay processing of your
return.

$2,000
0
+$1,500
$3,500

The prior period adjustment ($2,500) offsets the $2,000
liability for February and the excess $500 must be used to
offset March liabilities. Since the error was not discovered
until February, it does not affect January liabilities reported
in Month 1 of line 15.

Part 2: Tell us about your deposit
schedule and tax liability for this
quarter.

Using the above example, if the overreported social
security tax on a prior quarter return had been $10,000, Pine
Co. could carry the excess negative adjustment of $6,000
($10,000 − $2,000 − $2,000) to the next quarter. Pine Co.
would only report $4,000 of the adjustment on line 7e
because line 8 must equal the total shown in line 15.
See Form 941c for reporting requirements and information
on the option of filing a claim for refund of overpaid
employment taxes.

15. Check one:
• If line 8 is less than $2,500, check the appropriate box in
line 15 and go to Part 3.

• If you reported $50,000 or less in taxes during the

lookback period (see below), you are a monthly schedule
depositor unless the $100,000 Next-Day Deposit Rule
discussed in section 8 of Pub. 80 (Circular SS) applies.
Check the appropriate box on line 15 and enter your tax
liability for each month in the quarter. Add the amounts for
each month. Enter the result in the Total liability for quarter
box.
Note that your total tax liability for the quarter must equal
your total taxes shown on line 8. If it does not, your tax
deposits and payments may not be counted as timely.
You are a monthly schedule depositor for the calendar
year if the amount of your Form 941-SS taxes reported for
the lookback period is $50,000 or less. The lookback
period is the four consecutive quarters ending on June 30
of the prior year. For 2008, the lookback period begins July
1, 2006, and ends June 30, 2007. For details on the deposit
rules, see section 8 of Pub. 80 (Circular SS).

Part 3: Tell us about your business.
In Part 3, answer only those questions that apply to your
business. If the questions do not apply, leave them blank
and go to Part 4.

16. If your business has closed . . .
If you go out of business or stop paying wages, you must file
a final return. To tell IRS that a particular Form 941-SS is
your final return, check the box on line 16 and enter the date
you last paid wages in the space provided. For additional
filing requirements, see Final Return on page 2 of these
instructions.

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Page 7 of 7

Instructions for Form 941-SS

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

• Corporation (including a limited liability company

17. If you are a seasonal employer . . .

d

(LLC) treated as a corporation) — The president, vice
president, or other principal officer.
• Partnership (including an LLC treated as a
partnership) or unincorporated organization — A
responsible and duly authorized member or officer having
knowledge of its affairs.
• Single member LLC treated as a disregarded entity —
The owner of the LLC.
• Trust or estate — The fiduciary.
Form 941-SS may also be signed by a duly authorized
agent of the taxpayer if a valid power of attorney has been
filed.
Alternative signature method. Corporate officers or duly
authorized agents (but not paid preparers) may sign Form
941-SS by rubber stamp, mechanical device, or computer
software program. For details and required documentation,
see Rev. Proc. 2005-39. You can find Rev. Proc. 2005-39
on page 82 of Internal Revenue Bulletin 2005-28 at
www.irs.gov/pub/irs-irbs/irb05-28.pdf.
Paid preparers. A paid preparer must sign Form 941-SS
and provide the information in the Paid preparer’s use only
section of Part 5 if the preparer was paid to prepare Form
941-SS and is not an employee of the filing entity. The
preparer must give you a copy of the return in addition to the
copy to be filed with the IRS.
If you are a paid preparer, write your SSN or your
Preparer Tax Identification Number (PTIN) in the space
provided. Include your complete address. If you work for a
firm, write the firm’s name and the EIN of the firm. You can
apply for a PTIN using Form W-7P, Application for Preparer
Tax Identification Number. You cannot use your PTIN in
place of the EIN of the tax preparation firm.
Generally, do not complete this section if you are filing
the return as a reporting agent and have a valid Form 8655,
Reporting Agent Authorization, on file with the IRS.

If you hire employees seasonally — such as for summer or
winter only — check the box on line 17. Checking the box
tells IRS not to expect four Forms 941-SS from you
throughout the year because you have not paid wages
regularly.
Generally, we will not ask about unfiled returns if you file
at least one return showing tax due each year. However,
you must check the box every time you file a Form 941-SS.
Also, when you fill out Form 941-SS, be sure to check the
box on the top of the form that corresponds to the quarter
reported.

Part 4: May we speak with your
third-party designee?
If you want to allow an employee, a paid tax preparer, or
another person to discuss your Form 941-SS with the IRS,
check the “Yes” box in Part 4. Then tell us the name, phone
number, and the five-digit personal identification number
(PIN) of the specific person to speak with — not the name of
the firm who prepared your tax return. The designee may
choose any five numbers as his or her PIN.
By checking “Yes,” you authorize the IRS to talk to the
person you named (your designee) about any questions we
may have while we process your return. You also authorize
your designee to:
• give us any information that is missing from your return,
• call us for information about processing your return, and
• respond to certain IRS notices that you have shared with
your designee about math errors and return preparation.
IRS will not send notices to your designee.
You are not authorizing your designee to bind you to
anything (including additional tax liability) or to otherwise
represent you before the IRS. If you want to expand your
designee’s authorization, see Pub. 947, Practice Before the
IRS and Power of Attorney.
The authorization will automatically expire 1 year from the
due date (without regard to extensions) for filing your Form
941-SS. If you or your designee want to terminate the
authorization, write to the IRS office for your locality using
the “Form 941-SS without a payment” address under Where
Should You File? on page 2.

How to Order Forms and Publications
from the IRS
Call 1-800-829-3676 (U.S. Virgin Islands only), or
215-516-2000 (toll call).
Visit the IRS website at www.irs.gov.

Part 5: Sign here
Form 941-SS must be signed as follows.
• Sole proprietorship — The individual who owns the
business.

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