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

Instructions for Form 941

Department of the Treasury
Internal Revenue Service

(Rev. January 2018)

Employer's QUARTERLY Federal Tax Return
Section references are to the Internal Revenue Code unless
otherwise noted.

Future Developments

For the latest information about developments related to
Form 941 and its instructions, such as legislation enacted
after they were published, go to IRS.gov/Form941.

What's New
New filing addresses. The filing addresses for employers
located in Georgia, Illinois, Kentucky, Michigan, Tennessee,
and Wisconsin have changed. See Where Should You File,
later.
Social security and Medicare tax for 2018. The social
security tax rate is 6.2% each for the employee and
employer, unchanged from 2017. The social security wage
base limit is $128,400.
The Medicare tax rate is 1.45% each for the employee
and employer, unchanged from 2017. There is no wage base
limit for Medicare tax.
Social security and Medicare taxes apply to the wages of
household workers you pay $2,100 or more in cash wages in
2018. Social security and Medicare taxes apply to election
workers who are paid $1,800 or more in cash or an
equivalent form of compensation in 2018.

Reminders
Qualified small business payroll tax credit for increasing research activities. For tax years beginning after
December 31, 2015, a qualified small business may elect to
claim up to $250,000 of its credit for increasing research
activities as a payroll tax credit against the employer share of
social security tax. The portion of the credit used against the
employer share of social security tax is allowed in the first
calendar quarter beginning after the date that the qualified
small business filed its income tax return. The election and
determination of the credit amount that will be used against
the employer share of social security tax are made on Form
6765, Credit for Increasing Research Activities. The amount
from Form 6765, line 44, must then be reported on Form
8974, Qualified Small Business Payroll Tax Credit for
Increasing Research Activities. Form 8974 is used to
determine the amount of the credit that can be used in the
current quarter. The amount from Form 8974, line 12, is
reported on Form 941, line 11. If you are claiming the
research payroll tax credit on your Form 941, you must attach
Form 8974 to that Form 941. For more information about the
payroll tax credit, see Notice 2017-23, 2017-16 I.R.B. 1100,
available at IRS.gov/irb/2017-16_IRB/ar07.html. Also see
Adjusting tax liability for the qualified small business payroll
tax credit for increasing research activities reported on
line 11, later.
The payroll tax credit must generally be elected on an
original income tax return that is timely filed (including
extensions). However, Notice 2017-23 provides a limited
exception to that rule, allowing a qualified small business that
Feb 21, 2018

timely files its income tax return for a tax year beginning after
December 31, 2015, but fails to make the payroll tax credit
election, to make the election on an amended income tax
return filed on or before December 31, 2017. The Form 6765
filed with that amended income tax return must meet certain
procedural requirements provided in section 4.02 of Notice
2017-23. If the payroll tax credit is elected on an amended
income tax return filed under Notice 2017-23, the payroll tax
credit is allowed against the employer share of social security
tax for the quarter that begins after the amended income tax
return is filed. The payroll tax credit can't be applied to an
earlier quarter.
Certification program for professional employer organizations. The Tax Increase Prevention Act of 2014 required
the IRS to establish a voluntary certification program for
professional employer organizations (PEOs). PEOs handle
various payroll administration and tax reporting
responsibilities for their business clients and are typically
paid a fee based on payroll costs. To become and remain
certified under the certification program, certified
professional employer organizations (CPEOs) must meet
various requirements described in sections 3511 and 7705
and related published guidance. Certification as a CPEO
may affect the employment tax liabilities of both the CPEO
and its customers. A CPEO is generally treated as the
employer of any individual who performs services for a
customer of the CPEO and is covered by a contract
described in section 7705(e)(2) between the CPEO and the
customer (CPEO contract), but only for wages and other
compensation paid to the individual by the CPEO. For more
information, go to IRS.gov/CPEO.
CPEOs generally must file Form 941 and Schedule R
(Form 941), Allocation Schedule for Aggregate Form 941
Filers, electronically. For more information about a CPEO’s
requirement to file electronically, see Rev. Proc. 2017-14,
2017-3 I.R.B. 426, available at IRS.gov/irb/2017-03_IRB/
ar14.html.
Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. The work
opportunity tax credit is available for eligible unemployed
veterans who begin work on or after November 22, 2011, and
before January 1, 2020. Qualified tax-exempt organizations
that hire eligible unemployed veterans can claim the work
opportunity tax credit against their payroll tax liability using
Form 5884-C. For more information, go to IRS.gov/WOTC.
COBRA premium assistance credit. Effective for tax
periods beginning after December 31, 2013, the credit for
COBRA premium assistance payments can't be claimed on
Form 941. Instead, after filing your Form 941, file Form
941-X, Adjusted Employer's QUARTERLY Federal Tax
Return or Claim for Refund, to claim the COBRA premium
assistance credit. Filing a Form 941-X before filing a Form
941 for the quarter may result in errors or delays in
processing your Form 941-X. For more information, go to
IRS.gov/COBRACredit.

Cat. No. 14625L

wire payment on your behalf. EFTPS is a free service
provided by the Department of Treasury. Services provided
by your tax professional, financial institution, payroll service,
or other third party may have a fee.
For more information on making federal tax deposits, see
section 11 of Pub. 15. To get more information about EFTPS
or to enroll in EFTPS, go to EFTPS.gov, or call
1-800-555-4477 or 1-800-733-4829 (TDD). Additional
information about EFTPS is also available in Pub. 966.

If you’re entitled to claim the COBRA premium

TIP assistance credit, but aren't otherwise required to file

Form 941, file a Form 941 with -0- entered on line 14
before filing a Form 941-X to claim the credit.
Aggregate Form 941 filers. Agents and CPEOs must
complete Schedule R (Form 941) when filing an aggregate
Form 941. Aggregate Forms 941 are filed by agents
approved by the IRS under section 3504. To request
approval to act as an agent for an employer, the agent files
Form 2678 with the IRS. Aggregate Forms 941 are also filed
by CPEOs approved by the IRS under section 7705. CPEOs
file Form 8973, Certified Professional Employer
Organization/Customer Reporting Agreement, to notify the
IRS that they started or ended a service contract with a
customer. CPEOs generally must file Form 941 and
Schedule R electronically. For more information about a
CPEO’s requirement to file electronically, see Rev. Proc.
2017-14, 2017-3 I.R.B. 426, available at IRS.gov/irb/
2017-03_IRB/ar14.html.

!

CAUTION

For an EFTPS deposit to be on time, you must
submit the deposit by 8 p.m. Eastern time the day
before the date the deposit is due.

Same-day wire payment option. If you fail to submit a
deposit transaction on EFTPS by 8 p.m. Eastern time the day
before the date a deposit is due, you can still make your
deposit on time by using the Federal Tax Collection Service
(FTCS). To use the same-day wire payment method, you will
need to make arrangements with your financial institution
ahead of time. Please check with your financial institution
regarding availability, deadlines, and costs. Your financial
institution may charge you a fee for payments made this way.
To learn more about the information you will need to give
your financial institution to make a same-day wire payment,
go to IRS.gov/SameDayWire.
Timeliness of federal tax deposits. If a deposit is
required to be made on a day that isn't a business day, the
deposit is considered timely if it is made by the close of the
next business day. A business day is any day other than a
Saturday, Sunday, or legal holiday. The term “legal holiday”
for deposit purposes includes only those legal holidays in the
District of Columbia. Legal holidays in the District of
Columbia are provided in section 11 of Pub. 15.

Correcting a previously filed Form 941. If you discover
an error on a previously filed Form 941, make the correction
using Form 941-X. Form 941-X is filed separately from Form
941. For more information, see the Instructions for Form
941-X, section 13 of Pub. 15, or go to IRS.gov/
CorrectingEmploymentTaxes.
Employers can choose to file Forms 941 instead of
Form 944. Employers that would otherwise be required to
file Form 944, Employer's ANNUAL Federal Tax Return, can
notify the IRS if they want to file quarterly Forms 941 instead
of annual Form 944. To request to file quarterly Forms 941 to
report your social security and Medicare taxes for the 2018
calendar year, you must either call the IRS at
1-800-829-4933 between January 1, 2018, and April 2, 2018,
or send a written request postmarked between January 1,
2018, and March 15, 2018. After you contact the IRS, the IRS
will send you a written notice that your filing requirement has
been changed to Forms 941. You must receive written notice
from the IRS to file Forms 941 instead of Form 944 before
you may file these forms. If you don't receive this notice, you
must file Form 944 for calendar year 2018. See Rev. Proc.
2009-51, 2009-45 I.R.B. 625, available at IRS.gov/irb/
2009-45_IRB/ar12.html.

Electronic filing and payment. Now, more than ever
before, businesses can enjoy the benefits of filing tax returns
and paying their federal taxes electronically. Whether you
rely on a tax professional or handle your own taxes, the 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 EFTPS to your benefit.
For e-file, go to IRS.gov/EmploymentEfile for additional
information. A fee may be charged to file electronically.
For EFTPS, go to EFTPS.gov, or call EFTPS Customer
Service at 1-800-555-4477 or 1-800-733-4829 (TDD) for
additional information.

Requesting to file Form 944 instead of Forms 941. If
you’re required to file Forms 941 but believe your
employment taxes for the calendar year will be $1,000 or
less, you may request to file Form 944 instead of Forms 941
by calling the IRS at 1-800-829-4933 between January 1,
2018, and April 2, 2018, or sending a written request
postmarked between January 1, 2018, and March 15, 2018.
After you contact the IRS, the IRS will send you a written
notice that your filing requirement has been changed to Form
944. You must receive written notice from the IRS to file Form
944 instead of Forms 941 before you may file this form. If you
don't receive this notice, you must file Forms 941 for calendar
year 2018. See Rev. Proc. 2009-51, 2009-45 I.R.B. 625,
available at IRS.gov/irb/2009-45_IRB/ar12.html.

If you’re filing your tax return or paying your federal
taxes electronically, a valid employer identification
CAUTION number (EIN) is required at the time the return is filed
or the payment is made. If a valid EIN isn't provided, the
return or payment won't be processed. This may result in
penalties. See Employer identification number (EIN), later, for
information about applying for an EIN.

!

Electronic funds withdrawal (EFW). If you file Form 941
electronically, you can e-file and use EFW to pay the balance
due in a single step using tax preparation software or through
a tax professional. However, don't use EFW to make federal
tax deposits. For more information on paying your taxes
using EFW, go to IRS.gov/EFW.

Federal tax deposits must be made by electronic funds
transfer (EFT). You must use EFT to make all federal tax
deposits. Generally, an EFT is made using the Electronic
Federal Tax Payment System (EFTPS). If you don't want to
use EFTPS, you can arrange for your tax professional,
financial institution, payroll service, or other trusted third party
to make electronic deposits on your behalf. Also, you may
arrange for your financial institution to initiate a same-day

Credit or debit card payments. You can pay the balance
due shown on Form 941 by credit or debit card. Don't use a
credit or debit card to make federal tax deposits. For more
information on paying your taxes with a credit or debit card,
go to IRS.gov/PayByCard. Your payment will be processed
by a payment processor who will charge a processing fee.
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Instructions for Form 941 (Rev. 1-2018)

Federal law also requires you to pay any liability for the
employer share of social security and Medicare taxes. This
share of social security and Medicare taxes isn't withheld
from employees.

Online payment agreement. You may be eligible to apply
for an installment agreement online if you can't pay the full
amount of tax you owe when you file your return. For more
information, see What if you can't pay in full, later.

Who Must File Form 941?

Paid preparers must sign Form 941. Paid preparers must
complete and sign the paid preparer's section of Form 941.

Use Form 941 to report the following amounts.
Wages you’ve paid.
Tips your employees reported to you.
Federal income tax you withheld.
Both the employer and the employee share of social
security and Medicare taxes.
Additional Medicare Tax withheld from employees.
Current quarter's adjustments to social security and
Medicare taxes for fractions of cents, sick pay, tips, and
group-term life insurance.
Qualified small business payroll tax credit for increasing
research activities.

Outsourcing payroll duties. Generally, you're responsible
to ensure that tax returns are filed and deposits and
payments are made, even if you contract with a third party to
perform these acts. You remain responsible if the third party
fails to perform any required action. If you choose to
outsource any of your payroll and related tax duties (that is,
withholding, reporting, and paying over social security,
Medicare, FUTA, and income taxes) to a third-party payer,
such as a payroll service provider or reporting agent, go to
IRS.gov/OutsourcingPayrollDuties for helpful information on
this topic. If a CPEO pays wages and other compensation to
an individual performing services for you, and the services
are covered by a contract described in section 7705(e)(2)
between you and the CPEO (CPEO contract), then the
CPEO is generally treated as the employer, but only for
wages and other compensation paid to the individual by the
CPEO. However, with respect to certain employees covered
by a CPEO contract, you may also be treated as an employer
of the employees and, consequently, may also be liable for
federal employment taxes imposed on wages and other
compensation paid by the CPEO to such employees. For
more information on the different types of third-party payer
arrangements, see section 16 in Pub. 15.

Don't use Form 941 to report backup withholding or
income tax withholding on nonpayroll payments such as
pensions, annuities, and gambling winnings. Report these
types of withholding on Form 945, Annual Return of Withheld
Federal Income Tax.
After you file your first Form 941, you must file a return for
each quarter, even if you have no taxes to report, unless you
filed a final return or one of the exceptions listed next applies.

Exceptions

Special rules apply to some employers.
Seasonal employers don't have to file a Form 941 for
quarters in which they have no tax liability because they have
paid no wages. To tell the IRS that you won't file a return for
one or more quarters during the year, check the box on
line 18 every quarter you file Form 941. See section 12 of
Pub. 15 for more information.
Employers of household employees don't usually file
Form 941. See Pub. 926 and Schedule H (Form 1040) for
more information.
Employers of farm employees don't usually file Form 941.
See Form 943 and Pub. 51 for more information.

Where can you get telephone help? For answers to your
questions about completing Form 941 or tax deposit rules,
you can call the IRS at 1-800-829-4933 or 1-800-829-4059
(TDD/TTY for persons who are deaf, hard of hearing, or have
a speech disability), Monday–Friday from 7:00 a.m. to 7:00
p.m. local time (Alaska and Hawaii follow Pacific time).
Photographs of missing children. The IRS is a proud
partner with the National Center for Missing & Exploited
Children®(NCMEC). 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.

If none of the above exceptions applies and you

TIP haven't filed a final return, you must file Form 941

each quarter even if you didn't pay wages during the
quarter. Use IRS e-file, if possible.

General Instructions:
Purpose of Form 941

What If You Reorganize or Close Your
Business?
If You Sell or Transfer Your Business . . .

These instructions give you some background information
about Form 941. They tell you who must file Form 941, how
to complete it line by line, and when and where to file it.

If you sell or transfer your business, you and the new owner
must each file a Form 941 for the quarter in which the transfer
occurred. Report only the wages you paid.

If you want more in-depth information about payroll tax
topics relating to Form 941, see Pub. 15 or go to IRS.gov/
EmploymentTaxes.

When two businesses merge, the continuing firm must file
a return for the quarter in which the change took place and
the other firm should file a final return.

Federal law requires you, as an employer, to withhold
certain taxes from your employees' pay. Each time you pay
wages, you must withhold—or take out of your employees'
pay—certain amounts for federal income tax, social security
tax, and Medicare tax. You must also withhold Additional
Medicare Tax from wages you pay to an employee in excess
of $200,000 in a calendar year. Under the withholding
system, taxes withheld from your employees are credited to
your employees in payment of their tax liabilities.
Instructions for Form 941 (Rev. 1-2018)

Changing from one form of business to another—such as
from a sole proprietorship to a partnership or corporation—is
considered a transfer. If a transfer occurs, you may need a
new EIN. See section 1 of Pub. 15. Attach a statement to
your return with:
The new owner's name (or the new name of the business);
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If we receive Form 941 after the due date, we will treat
Form 941 as filed on time if the envelope containing Form
941 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
(PDS) on or before the due date. If you don't follow these
guidelines, we generally will consider Form 941 filed when it
is actually received. Go to IRS.gov/PDS for the current list of
PDSs. For the IRS mailing address to use if you’re using a
PDS, go to IRS.gov/PDSstreetAddresses.

Whether the business is now a sole proprietorship,
partnership, or corporation;
The kind of change that occurred (a sale or transfer);
The date of the change; and
The name of the person keeping the payroll records and
the address where those records will be kept.

If Your Business Has Closed . . .
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 for a particular quarter is your final return, check
the box on line 17 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.

If any due date for filing falls on a Saturday, Sunday, or
legal holiday, you may file your return on the next business
day.

How Should You Complete Form 941?
Type or print your EIN, name, and address in the spaces
provided. Also enter your name and EIN on the top of page 2.
Don't use your social security number (SSN) or individual
taxpayer identification number (ITIN). Generally, enter the
business (legal) name you used when you applied for your
EIN on Form SS-4. For example, if you’re a sole proprietor,
enter “Haleigh Smith” on the “Name” line and “Haleigh's
Cycles” on the “Trade name” line. Leave the “Trade name”
line blank if it is the same as your “Name.”

See the General Instructions for Forms W-2 and W-3 for
information about earlier dates for the expedited furnishing
and filing of Forms W-2, Wage and Tax Statement, when a
final Form 941 is filed.
If you participated in a statutory merger or consolidation,
or qualify for predecessor-successor status due to an
acquisition, you should generally file Schedule D (Form 941),
Report of Discrepancies Caused by Acquisitions, Statutory
Mergers, or Consolidations. See the Instructions for
Schedule D (Form 941) to determine whether you should file
Schedule D (Form 941) and when you should file it.

Employer identification number (EIN). To make sure
businesses comply with federal tax laws, the IRS monitors
tax filings and payments by using a numerical system to
identify taxpayers. A unique nine-digit 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.
Your business should have only one EIN. If you have more
than one and aren't sure which one to use, write to the IRS
office where you file your returns (using the Without a
payment address under Where Should You File, later, or call
the IRS at 1-800-829-4933.
If you don't have an EIN, you may apply for one online by
visiting IRS.gov/EIN. You may also apply for an EIN by faxing
or mailing Form SS-4 to the IRS. If you haven't received your
EIN by the due date of Form 941, write “Applied For” and the
date you applied in this entry space.

When Must You File?
File your initial Form 941 for the quarter in which you first paid
wages that are subject to social security and Medicare taxes
or subject to federal income tax withholding. See the table
titled When To File Form 941, later.
Then you must file for every quarter after that—every 3
months—even if you have no taxes to report, unless you’re a
seasonal employer or are filing your final return. See
Seasonal employers and If Your Business Has Closed,
earlier.
File Form 941 only once for each quarter. If you filed
electronically, don't file a paper Form 941. For more
information about filing Form 941 electronically, see
Electronic filing and payment, earlier.

If you’re filing your tax return electronically, a valid
EIN is required at the time the return is filed. If a valid
CAUTION EIN isn't provided, the return won't be accepted. This
may result in penalties.

!

When To File Form 941
Your Form 941 is due by the last day of the month that follows the end of the
quarter.
The Quarter Includes . . .

Quarter Ends

Form 941
Is Due

1. January, February, March

March 31

April 30

2. April, May, June

June 30

July 31

3. July, August, September

September 30

October 31

4. October, November, December

December 31

January 31

Always be sure the EIN on the form you file exactly

TIP matches the EIN the IRS assigned to your business.

Don't use your SSN or ITIN on forms that ask for an
EIN. Filing a Form 941 with an incorrect EIN or using another
business's EIN may result in penalties and delays in
processing your return.
If you change your business name, business address,
or responsible party... Notify the IRS immediately if you
change your business name, business address, or
responsible party.
Write to the IRS office where you file your returns (using
the Without a payment address under Where Should You
File, later) to notify the IRS of any business name change.
See Pub.1635 to see if you need to apply for a new EIN.
Complete and mail Form 8822-B to notify the IRS of a
business address or responsible party change. Don't mail

For example, you generally must report wages you pay
during the first quarter—which is January through March—by
April 30. If you made timely deposits in full payment of your
taxes for the quarter, you may file by the 10th day of the
second month that follows the end of the quarter. For
example, you may file Form 941 by May 10 if you made
timely deposits in full payment of your taxes for the first
quarter.
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Instructions for Form 941 (Rev. 1-2018)

Form 8822-B with your Form 941. For a definition of
“responsible party,” see the Instructions for Form SS-4.

Without a
payment . . .

If you’re in . . .

Check the Box for the Quarter

Under “Report for this Quarter of 2018” at the top of Form
941, check the appropriate box of the quarter for which
you’re 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

Make entries on Form 941 as follows to enable accurate
scanning and processing.
Use 10-point Courier font (if possible) for all entries if
you’re typing or using a computer to complete your form.
Portable Document Format (PDF) forms on IRS.gov have
fillable fields with acceptable font specifications.
Don't enter dollar signs and decimal points. Commas are
optional. Enter dollars to the left of the preprinted decimal
point and cents to the right of it. Don’t round entries to whole
dollars.
Leave blank any data field (except lines 1, 2, and 12) 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.
Staple multiple sheets in the upper left corner when filing.

Required Notice to Employees About the
Earned Income Credit (EIC)

To notify employees about the EIC, you must give the
employees one of the following items.
Form W-2 which has the required information about the
EIC on the back of Copy B.
A substitute Form W-2 with the same EIC information on
the back of the employee's copy that is on Copy B of Form
W-2.
Notice 797, Possible Federal Tax Refund Due to the
Earned Income Credit (EIC).
Your written statement with the same wording as
Notice 797.

With a payment . . .

Connecticut
Delaware
District of
Columbia
Florida
Indiana
Maine
Maryland
Massachusetts
New Hampshire

New Jersey
New York
North Carolina
Ohio
Pennsylvania
Rhode Island
South Carolina
Vermont
Virginia
West Virginia

Department of the
Treasury
Internal Revenue
Service
Cincinnati, OH
45999-0005

Internal Revenue
Service
P.O. Box 804522
Cincinnati, OH
45280-4522

Georgia
Illinois
Kentucky
Michigan

Tennessee
Wisconsin

Department of the
Treasury
Internal Revenue
Service
Kansas City, MO
64999-0005

Internal Revenue
Service
P.O. Box 806532
Cincinnati, OH
45280-6532

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Hawaii
Idaho
Iowa
Kansas
Louisiana
Minnesota
Mississippi

Missouri
Montana
Nebraska
Nevada
New Mexico
North Dakota
Oklahoma
Oregon
South Dakota
Texas
Utah
Washington
Wyoming

Department of the
Treasury
Internal Revenue
Service
Ogden, UT
84201-0005

Internal Revenue
Service
P.O. Box 37941
Hartford, CT
06176-7941

No legal residence or principal
place of business in any state

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

Internal Revenue
Service
P.O. Box 37941
Hartford, CT
06176-7941

Special filing addresses for
exempt organizations; federal,
state, and local governmental
entities; and Indian tribal
governmental entities;
regardless of location

Department of the
Treasury
Internal Revenue
Service
Ogden, UT
84201-0005

Internal Revenue
Service
P.O. Box 37941
Hartford, CT
06176-7941

For more information, see section 10 of Pub. 15 and Pub.
596.

Your filing address may have changed from that
used to file your employment tax return in prior years.
CAUTION Don't send Form 941 or any payments to the SSA.
PDSs can't deliver to P.O. boxes.

Reconciling Forms 941 and Form W-3

Depositing Your Taxes

!

The IRS matches amounts reported on your four quarterly
Forms 941 with Form W-2 amounts totaled on your yearly
Form W-3, Transmittal of Wage and Tax Statements. If the
amounts don't agree, you may be contacted by the IRS or the
Social Security Administration (SSA). The following amounts
are reconciled.
Federal income tax withholding.
Social security wages.
Social security tips.
Medicare wages and tips.

You must deposit all depository taxes electronically
by EFT. For more information, see Federal tax
CAUTION deposits must be made by electronic funds transfer
(EFT) under Reminders, earlier.

!

Must You Deposit Your Taxes?

You may have to deposit the federal income taxes you
withheld and both the employer and employee social security
taxes and Medicare taxes.
If your total taxes after adjustments and credits
(line 12) are less than $2,500 for the current quarter or
the prior quarter, and you didn't incur a $100,000
next-day deposit obligation during the current quarter.
You don't 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. For more information on
paying with a timely filed return, see the instructions for
line 14, later. If you’re not sure your total tax liability for the
current quarter will be less than $2,500 (and your liability for

For more information, see section 12 of Pub. 15 and the
Instructions for Schedule D (Form 941).

Where Should You File?
Where you file depends on whether you include a payment
with Form 941. For the IRS mailing address to use if you’re
using a PDS, go to IRS.gov/PDSstreetAddresses.

Instructions for Form 941 (Rev. 1-2018)

-5-

What About Penalties and Interest?

the prior quarter wasn't less than $2,500), make deposits
using the semiweekly or monthly rules so you won't be
subject to failure-to-deposit (FTD) penalties.
If your total taxes after adjustments and credits
(line 12) are $2,500 or more for the current quarter and
the prior quarter. You must make deposits according to
your deposit schedule. See section 11 of Pub. 15 for
information and rules about federal tax deposits.

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.
File your fully completed Form 941 on time.
Report your tax liability accurately.
Submit valid checks for tax payments.
Furnish accurate Forms W-2 to employees.
File Form W-3 and Copy A of Forms W-2 with the SSA on
time and accurately.

You may reduce your deposits during the quarter by the
amount of the COBRA premium assistance credit that will be
reflected on your Form 941-X, but only if you use the claim
process and not the adjustment process to claim the COBRA
premium assistance credit on your Form 941-X for the
quarter.

Penalties and interest are charged on taxes paid late and
returns filed late at a rate set by law. See sections 11 and 12
of Pub. 15 for details.

The COBRA premium assistance credit is treated as a
credit on the first day of the return period (that is, January 1,
April 1, July 1, or October 1). However, because the credit is
now claimed on Form 941-X filed after submission of the
Form 941, an employer that reduces its required deposits in
anticipation of the credit will receive a system-generated
notice reflecting a balance due and associated penalties and
interest, if applicable. The balance due, including any related
penalties and interest, resulting from the reduction in
deposits in anticipation of the credit will be abated when the
credit is applied. Such abatement will generally occur without
any further action from the employer.

Use Form 843 to request abatement of assessed
penalties or interest. Don't request abatement of assessed
penalties or interest on Form 941 or Form 941-X.
If federal income, social security, and Medicare taxes
(that is, trust fund taxes) that must be withheld aren't
CAUTION withheld or aren't deposited or paid to the United
States Treasury, the trust fund recovery penalty may apply.
The penalty is 100% of the unpaid trust fund tax. If these
unpaid taxes can't be immediately collected from the
employer or business, the trust fund recovery penalty may be
imposed on all persons who are determined by the IRS to be
responsible for collecting, accounting for, or paying over
these taxes, and who acted willfully in not doing so. For more
information, see section 11 of Pub. 15.

!

Alternatively, to prevent triggering a system-generated
balance due notice, the employer can make its deposits
without a reduction in anticipation of the COBRA premium
assistance credit and follow the ordinary procedures for filing
a claim for refund or adjusted return using Form 941-X.

Adjustment of Tax on Tips

When Must You Deposit Your Taxes?
Determine if You’re a Monthly or Semiweekly
Schedule Depositor for the Quarter

If, by the 10th of the month after the month you received an
employee's report on tips, you don't have enough employee
funds available to withhold the employee share of social
security and Medicare taxes, you no longer have to collect it.
Report the entire amount of these tips on line 5b (Taxable
social security tips), line 5c (Taxable Medicare wages and
tips), and, if the withholding threshold is met, line 5d (Taxable
wages and tips subject to Additional Medicare Tax
withholding). Include as an adjustment on line 9 the total
uncollected employee share of the social security and
Medicare taxes.

The IRS uses two different sets of deposit rules to determine
when businesses must deposit their social security,
Medicare, and withheld federal income taxes. These
schedules tell you when a deposit is due after you have a
payday.
Your deposit schedule isn't determined by how often you
pay your employees. Your deposit schedule depends on the
total tax liability you reported on Form 941 during the
previous four-quarter lookback period (July 1 of the second
preceding calendar year through June 30 of the preceding
calendar year). See section 11 of Pub. 15 for details. If you
filed Form 944 in either 2016 or 2017, your lookback period is
the 2016 calendar year.

Specific Instructions:
Part 1: Answer These Questions for
This Quarter
1. Number of Employees Who Received Wages,
Tips, or Other Compensation This Quarter

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’re a monthly schedule depositor.
If you reported more than $50,000 of taxes during the
lookback period, you’re a semiweekly schedule depositor.

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
Form 941. Don't include:
Household employees,
Employees in nonpay status for the pay period,
Farm employees,
Pensioners, or
Active members of the Armed Forces.

If you’re a monthly schedule depositor and
accumulate a $100,000 tax liability on any day during
CAUTION the deposit period, you become a semiweekly
schedule depositor on the next day and remain so for at least
the rest of the calendar year and for the following calendar
year. See $100,000 Next-Day Deposit Rule in section 11 of
Pub. 15 for more information.

!

-6-

Instructions for Form 941 (Rev. 1-2018)

For 2018, the rate of social security tax on taxable wages
is 6.2% (0.062) each for the employer and employee or
12.4% (0.124) for both. Stop paying social security tax on
and entering an employee's wages on line 5a when the
employee's taxable wages (including tips) reach $128,400 for
the year. However, continue to withhold income and
Medicare taxes for the whole year on wages and tips even
when the social security wage base of $128,400 has been
reached.

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

TIP Forms W-2 electronically. For details, visit the SSA's

Employer W-2 Filing Instructions & Information
website at SSA.gov/employer or call the SSA at
1-800-772-6270.

2. Wages, Tips, and Other Compensation

Enter amounts on line 2 that would also be included in box 1
of your employees' Forms W-2. Include sick pay paid by a
third party if you were given timely notice of the payments
and the third party transferred liability for the employer's
taxes to you. See the General Instructions for Forms W-2 and
W-3 for details.

line 5a (column 1)
x    0.124
line 5a (column 2)

If you’re a third-party payer of sick pay, don't include sick
pay that you paid to policyholders' employees here if you
gave the policyholders timely notice of the payments.

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 $128,400 for the
year. Include all tips your employee reported to you even if
you were unable to withhold the employee tax of 6.2%. Don’t
include service charges on line 5b.
Your employee must report cash tips to you by the 10th
day of the month after the month the tips are received. The
report should include charged tips (for example, credit and
debit card charges) you paid over to the employee for charge
customers, tips the employee received directly from
customers, and tips received from other employees under
any tip-sharing arrangement. Both directly and indirectly
tipped employees must report tips to you. No report is
required for months when tips are less than $20. Employees
may use Form 4070 (available only in Pub. 1244), or submit a
written statement or electronic tip record.
Don't include allocated tips (described in section 6 of Pub.
15) on this line. Instead, report them on Form 8027. Allocated
tips aren't reportable on Form 941 and aren't subject to
withholding of federal income, social security, or Medicare
taxes.

3. Federal Income Tax Withheld From Wages,
Tips, and Other Compensation

Enter the federal income tax you withheld (or were required
to withhold) from your employees on this quarter's wages,
tips, taxable fringe benefits, and supplemental
unemployment compensation benefits. Don't include any
income tax withheld by a third-party payer of sick pay even if
you reported it on Forms W-2. You will reconcile this
difference on Form W-3. Also include here any excise taxes
you were required to withhold on golden parachute payments
(section 4999).
If you’re a third-party payer of sick pay, enter the federal
income tax you withheld (or were required to withhold) on
third-party sick pay here.

4. If No Wages, Tips, and Other Compensation
Are Subject to Social Security or Medicare
Tax . . .

If no wages, tips, and other compensation on line 2 are
subject to social security or Medicare tax, check the box on
line 4. If this question doesn't apply to you, leave the box
blank. For more information about exempt wages, see
section 15 of Pub. 15 and section 4 of
Pub. 15-A, Employer's Supplemental Tax Guide.

line 5b (column 1)
x     0.124
line 5b (column 2)

5c. Taxable Medicare wages & tips. Enter all wages,
tips, sick pay, and taxable fringe benefits that are subject to
Medicare tax. Unlike social security wages, there is no limit
on the amount of wages subject to Medicare tax.
The rate of Medicare tax is 1.45% (0.0145) each for the
employer and employee or 2.9% (0.029) for both. Include all
tips your employees reported during the quarter, even if you
were unable to withhold the employee tax of 1.45%.

If you’re a government employer, wages you pay
aren't automatically exempt from social security and
CAUTION 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.

!

5a–5e. Taxable Social Security and Medicare
Wages and Tips

line 5c (column 1)
x     0.029
line 5c (column 2)

5a. Taxable social security wages. Enter the total
wages, sick pay, and taxable fringe benefits subject to social
security taxes 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. Don't include tips on
this line. For information on types of wages subject to social
security taxes, see section 5 of Pub. 15.
Instructions for Form 941 (Rev. 1-2018)

For more information on tips, see section 6 of Pub. 15.
5d. Taxable wages & tips subject to Additional
Medicare Tax withholding. Enter all wages, tips, sick pay,
and taxable fringe benefits that are subject to Additional
Medicare Tax withholding. You’re required to begin
withholding Additional Medicare Tax in the pay period in
which you pay wages in excess of $200,000 to an employee
and continue to withhold it each pay period until the end of
the calendar year. Additional Medicare Tax is only imposed
-7-

on the employee. There is no employer share of Additional
Medicare Tax. All wages that are subject to Medicare tax are
subject to Additional Medicare Tax withholding if paid in
excess of the $200,000 withholding threshold.
For more information on what wages are subject to
Medicare tax, see the chart, Special Rules for Various Types
of Services and Payments, in section 15 of Pub. 15. For more
information on Additional Medicare Tax, go to IRS.gov/
ADMT.
Once wages and tips exceed the $200,000 withholding
threshold, include all tips your employees reported during the
quarter, even if you were unable to withhold the employee tax
of 0.9%.

Current quarter's adjustments. In certain cases, you must
adjust the amounts you entered as social security and
Medicare taxes in column 2 of lines 5a–5d to figure your
correct tax liability for this quarter's Form 941. See section 13
of Pub. 15.
7. Current quarter's adjustment for 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 of amounts
shown in column 2 of lines 5a–5d may differ slightly from
amounts actually withheld from employees' pay due to the
rounding of social security and Medicare taxes based on
statutory rates.
8. Current quarter's adjustment for sick pay. Enter the
adjustment for the employee share of social security and
Medicare taxes that were withheld and deposited by your
third-party sick pay payer with regard to sick pay paid by the
third-party. These wages should be included on line 5a,
line 5c, and, if the withholding threshold is met, line 5d. If
you’re the third-party sick pay payer, enter the adjustment for
any employer share of these taxes required to be paid by the
employer.
9. 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.

line 5d (column 1)
x     0.009
line 5d (column 2)

5e. Total social security and Medicare taxes. Add the
column 2 amounts on lines 5a–5d. Enter the result on line 5e.

5f. Section 3121(q) Notice and Demand—Tax
Due on Unreported Tips

Enter the tax due from your Section 3121(q) Notice and
Demand on line 5f. The IRS issues a Section 3121(q) Notice
and Demand to advise an employer of the amount of tips
received by employees who failed to report or underreported
tips to the employer. An employer isn't liable for the employer
share of the social security and Medicare taxes on
unreported tips until notice and demand for the taxes is made
to the employer by the IRS in a Section 3121(q) Notice and
Demand. The tax due may have been determined from tips
reported to the IRS on employees' Forms 4137, Social
Security and Medicare Tax on Unreported Tip Income, or
other tips that weren't reported to their employer as
determined by the IRS during an examination. For additional
information, see Rev. Rul. 2012-18, 2012-26 I.R.B. 1032,
available at IRS.gov/irb/2012-26_IRB/ar07.html.

Prior quarter's adjustments. If you need to correct any
adjustment reported on a previously filed Form 941,
complete and file Form 941-X. Form 941-X is an adjusted
return or claim for refund and is filed separately from Form
941. See section 13 of Pub. 15.

10. Total Taxes After Adjustments

Combine the amounts shown on lines 6–9 and enter the
result on line 10.

11. Qualified Small Business Payroll Tax Credit
for Increasing Research Activities

Deposit the tax within the time period required under your
deposit schedule to avoid any possible deposit penalty. The
tax is treated as accumulated by the employer on the “Date
of Notice and Demand” as printed on the Section 3121(q)
Notice and Demand. The employer must include this amount
on the appropriate line of the record of federal tax liability
(Part 2 of Form 941 for a monthly schedule depositor or
Schedule B (Form 941) for a semiweekly schedule
depositor).

Enter the amount of the credit from Form 8974, line 12.

!

If you enter an amount on line 11, you must attach
Form 8974.

CAUTION

12. Total Taxes After Adjustments and Credits

Subtract line 11 from line 10 and enter the result on line 12.

6. Total Taxes Before Adjustments

If line 12 is less than $2,500 or line 12 on the prior
quarterly return was less than $2,500, and you didn't
incur a $100,000 next-day deposit obligation during the
current quarter. You may pay the amount with Form 941 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. For more information on paying
with a timely filed return, see the instructions for line 14, later.
If line 12 is $2,500 or more and line 12 on the prior
quarterly return was $2,500 or more, or if you incurred a
$100,000 next-day deposit obligation during the current
quarter. You must make deposits according to your deposit
schedule. The amount shown on line 12 must equal the
“Total liability for quarter” shown on line 16 or the “Total
liability for the quarter” shown on Schedule B (Form 941).

Add the total federal income tax withheld from wages, tips,
and other compensation (line 3), the total social security and
Medicare taxes before adjustments (line 5e), and any tax due
under a Section 3121(q) Notice and Demand (line 5f). Enter
the result on line 6.

7–9. Tax Adjustments

Enter tax amounts on lines 7–9 that result from current
quarter adjustments. Use a minus sign (if possible) to show
an adjustment that decreases the total taxes shown on line 6
instead of parentheses. Doing so enhances the accuracy of
our scanning software. For example, enter “-10.59” instead of
“(10.59).” However, if your software only allows for
parentheses in entering negative amounts, you may use
them.
-8-

Instructions for Form 941 (Rev. 1-2018)

must meet to enter into and maintain an installment
agreement, such as paying the liability within 24 months, and
making all required deposits and timely filing tax returns
during the length of the agreement.
If your installment agreement is accepted, you will be
charged a fee and you will be subject to penalties and
interest on the amount of tax not paid by the due date of the
return.

For more information and rules about federal tax deposits,
see Depositing Your Taxes, earlier, and section 11 of Pub.
15.
If you’re a semiweekly depositor, you must complete
Schedule B (Form 941). If you fail to complete and
CAUTION submit Schedule B (Form 941), the IRS may assert
deposit penalties based on available information.

!

13. Total Deposits for This Quarter

15. Overpayment

Enter your deposits for this quarter, including any
overpayment from a prior quarter. Also include in the amount
shown any overpayment that you applied from filing Form
941-X, 941-X (PR), 944-X, or 944-X (SP), in the current
quarter.

If line 13 is more than line 12, enter the difference on line 15.
Never make an entry on both lines 14 and 15.
If you deposited more than the correct amount for the
quarter, you can choose to have the IRS either refund the
overpayment or apply it to your next return. Check only one
box on line 15. If you don't check either box or if you check
both boxes, generally we will apply the overpayment to your
next return. Regardless of any boxes you check or don't
check on line 15, we may apply your overpayment to any
past due tax account that is shown in our records under your
EIN.

14. Balance Due

If line 12 is more than line 13, enter the difference on line 14.
Otherwise, see Overpayment, later.
Never make an entry on both lines 14 and 15.

You don't have to pay if line 14 is under $1. Generally,
you should have a balance due only if your total taxes after
adjustments and credits (line 12) for the current quarter or
prior quarter are less than $2,500, and you didn't incur a
$100,000 next-day deposit obligation during the current
quarter. However, see section 11 of Pub. 15 for information
about payments made under the accuracy of deposits rule.

If line 15 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.

Complete Both Pages

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

If you were required to make federal tax deposits, pay the
amount shown on line 14 by EFT. If you weren't required to
make federal tax deposits, you may pay the amount shown
on line 14 by EFT, credit card, debit card, check, money
order, or EFW. For more information on electronic payment
options, go to IRS.gov/Payments.

Part 2: Tell Us About Your Deposit
Schedule and Tax Liability for This
Quarter
16. Tax Liability for the Quarter

If you pay by EFT, credit card, or debit card, file your
return using the Without a payment address under Where
Should You File, earlier, and don't file Form 941-V, Payment
Voucher.

De minimis exception. If line 12 is less than $2,500 or
line 12 on the prior quarterly return was less than $2,500, and
you didn't incur a $100,000 next-day deposit obligation
during the current quarter, check the appropriate box on
line 16 and go to Part 3.

If you pay by check or money order, make it payable to the
“United States Treasury.” Enter your EIN, “Form 941,” and
the tax period (“1st Quarter 2018,” “2nd Quarter 2018,” “3rd
Quarter 2018,” or “4th Quarter 2018”) on your check or
money order. Complete Form 941-V and enclose with Form
941.

If you meet the de minimis exception based on the
prior quarter and line 12 for the current quarter is
CAUTION $100,000 or more, you must provide a record of your
federal tax liability. If you’re a monthly schedule depositor,
complete the deposit schedule on line 16. If you’re a
semiweekly schedule depositor, attach Schedule B (Form
941).

!

If line 12 is $2,500 or more and you’ve deposited all taxes
when due, the balance due on line 14 should be zero, unless
you’ve reduced your deposits in anticipation of filing a Form
941-X to claim COBRA premium assistance credits. See
Depositing Your Taxes, earlier.

!

CAUTION

If you reported $50,000 or less in taxes during the
lookback period, you’re a monthly schedule depositor unless
the $100,000 Next-Day Deposit Rule discussed in section 11
of Pub. 15 applies. Check the appropriate box on line 16 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 12. If it doesn't, your tax
deposits and payments may not be counted as timely. Don't
change your tax liability on line 16 by adjustments reported
on any Forms 941-X.
You’re a monthly schedule depositor for the calendar year
if the amount of your Form 941 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 2018, the lookback period begins July 1, 2016, and

If you’re required to make deposits and instead pay
the taxes with Form 941, you may be subject to a
penalty. See Must You Deposit Your Taxes, earlier.

What if you can't pay in full? If you can't pay the full
amount of tax you owe, you can apply for an installment
agreement online. You can apply for an installment
agreement online if:
You can't pay the full amount shown on line 14,
The total amount you owe is $25,000 or less, and
You can pay the liability in full in 24 months.
To apply using the Online Payment Agreement
Application, go to IRS.gov/OPA.
Under an installment agreement, you can pay what you
owe in monthly installments. There are certain conditions you
Instructions for Form 941 (Rev. 1-2018)

-9-

tax credit for increasing research activities on Form 6765.
The third quarter of 2018 is the first quarter that begins after
Rose Co. filed the income tax return making the payroll tax
credit election. Therefore, the payroll tax credit applies
against Rose Co.'s share of social security tax on wages paid
to employees in the third quarter of 2018. Rose Co. is a
semiweekly schedule depositor. Rose Co. completes
Schedule B (Form 941) by reducing the amount of liability
entered for the first payroll payment in the third quarter of
2018 that includes wages subject to social security tax by the
lessor of (1) its share of social security tax on the wages or
(2) the available payroll tax credit. If the payroll tax credit
elected is more than Rose Co.'s share of social security tax
on the first payroll payment of the quarter, the excess payroll
tax credit would be carried forward to succeeding payroll
payments in the third quarter until it is used. If the amount of
the payroll tax credit exceeds Rose Co.'s share of social
security tax on wages paid to its employees in the third
quarter, the excess credit would be treated as a payroll tax
credit against its share of social security tax on wages paid in
the fourth quarter. If the amount of the payroll tax credit
remaining exceeded Rose Co.'s share of social security tax
on wages paid in the fourth quarter, it could be carried
forward and treated as a payroll tax credit for the first quarter
of 2019.

ends June 30, 2017. For details on the deposit rules, see
section 11 of Pub. 15. If you filed Form 944 in either 2016 or
2017, your lookback period is the 2016 calendar year.
The amounts entered on line 16 are a summary of
your monthly tax liability, not a summary of deposits
CAUTION you made. If you don't properly report your liabilities
when required or if you’re a semiweekly schedule depositor
and enter your liabilities on line 16 instead of on Schedule B
(Form 941), you may be assessed an “averaged” FTD
penalty. See Deposit Penalties in section 11 of Pub. 15 for
more information.

!

If you reported more than $50,000 of taxes for the
lookback period, you’re a semiweekly schedule depositor.
Check the appropriate box on line 16.
You must complete Schedule B (Form 941) and submit it
with your Form 941. Don't use Schedule B (Form 941) if
you’re a monthly schedule depositor.
Don't change your tax liability on Schedule B (Form 941)
by adjustments reported on any Forms 941-X.
Adjusting tax liability for the qualified small business
payroll tax credit for increasing research activities reported on line 11. Monthly schedule depositors and
semiweekly schedule depositors must account for the
qualified small business payroll tax credit for increasing
research activities (line 11) when reporting their tax liabilities
on line 16 or Schedule B (Form 941). The total tax liability for
the quarter must equal the amount reported on line 12.
Failure to account for the qualified small business payroll tax
credit for increasing research activities on line 16 or
Schedule B (Form 941) may cause line 12 to be less than the
total tax liability reported on line 16 or Schedule B (Form
941). Don't reduce the tax liability reported on line 16 or
Schedule B (Form 941) below zero.
The qualified small business payroll tax credit for
increasing research activities applies to the employer share
of social security tax on wages paid in the quarter that begins
after the income tax return electing the credit has been filed.
In completing line 16 or Schedule B (Form 941), you take into
account the payroll tax credit against the liability for the
employer share of social security tax starting with the first
payroll payment of the quarter that includes payments of
wages subject to social security tax to your employees. The
credit may be taken to the extent of the employer share of
social security tax on wages associated with the first payroll
payment, and then to the extent of the employer share of
social security tax associated with succeeding payroll
payments in the quarter until the credit is used. Consistent
with the entries on line 16 or Schedule B (Form 941), the
payroll tax credit should be taken into account in making
deposits of employment tax. If any payroll tax credit is
remaining at the end of the quarter that has not been used
completely because it exceeds the employer share of social
security tax for the quarter, the excess credit may be carried
forward to the succeeding quarter and allowed as a payroll
tax credit for the succeeding quarter. The payroll tax credit
may not be taken as a credit against income tax withholding,
Medicare tax, or the employee share of social security tax.
Also, the remaining payroll tax credit may not be carried back
and taken as a credit against wages paid from preceding
quarters.

Part 3: Tell Us About Your Business
In Part 3, answer only those questions that apply to your
business. If the questions don't apply, leave them blank and
go to Part 4.

17. If Your Business Has Closed . . .

If you go out of business or stop paying wages, you must file
a final return. To tell the IRS that a particular Form 941 is your
final return, check the box on line 17 and enter the date you
last paid wages in the space provided. For additional filing
requirements, see If Your Business Has Closed, earlier.

18. If You’re a Seasonal Employer . . .

If you hire employees seasonally—such as for summer or
winter only—check the box on line 18. Checking the box tells
the IRS not to expect four Forms 941 from you throughout the
year because you haven't paid wages regularly.
Generally, we won't 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.
Also, when you complete Form 941, 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 with the IRS, check
the “Yes” box in Part 4. Enter 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 that
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 do all of the following.

Example. Rose Co. is an employer with a calendar tax
year that filed its timely income tax return on April 17, 2018.
Rose Co. elected to take the qualified small business payroll
-10-

Instructions for Form 941 (Rev. 1-2018)

this section if the reporting agent offered legal advice, for
example, advising the client on determining whether its
workers are employees or independent contractors for
federal tax purposes.

Give us any information that is missing from your return.
Call us for information about processing your return.
Respond to certain IRS notices that you’ve shared with
your designee about math errors and return preparation. The
IRS won't send notices to your designee.

How To Order Forms, Instructions,
and Publications From the IRS

You’re 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.

Go to IRS.gov/OrderForms.

The authorization will automatically expire 1 year from the
due date (without regard to extensions) for filing your Form
941. If you or your designee want to terminate the
authorization, write to the IRS office for your location using
the Without a payment address under Where Should You
File, earlier.

Part 5: Sign Here (Approved Roles)
Complete all information in Part 5 and sign Form 941. The
following persons are authorized to sign the return for each
type of business entity.
• Sole proprietorship— The individual who owns the
business.
• Corporation (including a limited liability company
(LLC) treated as a corporation)— The president, vice
president, or other principal officer duly authorized to sign.
• Partnership (including an LLC treated as a partnership) or unincorporated organization— A responsible
and duly authorized member, partner, or officer having
knowledge of its affairs.
• Single-member LLC treated as a disregarded entity for
federal income tax purposes— The owner of the LLC or a
principal officer duly authorized to sign.
• Trust or estate— The fiduciary.
Form 941 may 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 may sign Form 941 by rubber stamp,
mechanical device, or computer software program. For
details and required documentation, see Rev. Proc. 2005-39,
2005-28 I.R.B. 82, available at IRS.gov/irb/2005-28_IRB/
ar16.html.

Paid Preparer Use Only

A paid preparer must sign Form 941 and provide the
information in the Paid Preparer Use Only section of Part 5 if
the preparer was paid to prepare Form 941 and isn't an
employee of the filing entity. Paid preparers must sign paper
returns with a manual signature. The preparer must give you
a copy of the return in addition to the copy to be filed with the
IRS.
If you’re a paid preparer, enter your Preparer Tax
Identification Number (PTIN) in the space provided. Include
your complete address. If you work for a firm, enter the firm's
name and the EIN of the firm. You can apply for a PTIN
online or by filing Form W-12. For more information about
applying for a PTIN online, go to IRS.gov/PTIN. You can't use
your PTIN in place of the EIN of the tax preparation firm.
Generally, don't complete this section if you’re filing the
return as a reporting agent and have a valid Form 8655 on
file with the IRS. However, a reporting agent must complete
Instructions for Form 941 (Rev. 1-2018)

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Other IRS Forms, Notices, and
Publications You May Need
•

Form SS-4, Application for Employer Identification Number

•

Form W-2, Wage and Tax Statement

•

Form W-2c, Corrected Wage and Tax Statement

•

Form W-3, Transmittal of Wage and Tax Statements

•

Form W-3c, Transmittal of Corrected Wage and Tax Statements

•

Form W-4, Employee's Withholding Allowance Certificate

•

Form 940, Employer's Annual Federal Unemployment (FUTA)
Tax Return

•

Form 941-X, Adjusted Employer's QUARTERLY Federal Tax
Return or Claim for Refund

•

Form 943, Employer's Annual Federal Tax Return for Agricultural
Employees

•

Form 944, Employer's ANNUAL Federal Tax Return

•

Form 944-X, Adjusted Employer's ANNUAL Federal Tax Return
or Claim for Refund

•

Form 8027, Employer's Annual Information Return of Tip Income
and Allocated Tips

•

Form 8655, Reporting Agent Authorization

•

Form 8974, Qualified Small Business Payroll Tax Credit for
Increasing Research Activities

•

Notice 797, Possible Federal Tax Refund Due to the Earned
Income Credit (EIC)

•

Pub. 15, Employer's Tax Guide

•

Pub. 15-A, Employer's Supplemental Tax Guide

•

Pub. 15-B, Employer's Tax Guide to Fringe Benefits

•

Pub. 596, Earned Income Credit

•

Pub. 1244, Employee's Daily Record of Tips and Report to
Employer

•

Pub. 926, Household Employer's Tax Guide

•

Schedule B (Form 941), Report of Tax Liability for Semiweekly
Schedule Depositors

•

Schedule D (Form 941), Report of Discrepancies Caused by
Acquisitions, Statutory Mergers, or Consolidations

•

Schedule H (Form 1040), Household Employment Taxes

•

Schedule R (Form 941), Allocation Schedule for Aggregate Form
941 Filers

-12-

Instructions for Form 941 (Rev. 1-2018)