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

Instructions for Form 941-SS

Department of the Treasury
Internal Revenue Service

(Rev. January 2020)

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.

Future Developments

For the latest information about developments related to
Form 941-SS and its instructions, such as legislation enacted
after they were published, go to IRS.gov/Form941SS.

What's New
Social security and Medicare tax for 2020. The social
security tax rate is 6.2% each for the employee and
employer, unchanged from 2019. The social security wage
base limit is $137,700.
The Medicare tax rate is 1.45% each for the employee
and employer, unchanged from 2019. There is no wage base
limit for Medicare tax.
Social security and Medicare taxes apply to the wages of
household workers you pay $2,200 or more in cash wages in
2020. Social security and Medicare taxes apply to election
workers who are paid $1,900 or more in cash or an
equivalent form of compensation in 2020.

Reminders
Qualified small business payroll tax credit for increasing research activities. For tax years beginning after 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
payroll tax credit must be elected on an original income tax
return that is timely filed (including extensions). 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-SS,
line 11. If you’re claiming the research payroll tax credit on
your Form 941-SS, you must attach Form 8974 to that Form
941-SS. 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#NOT-2017-23 and IRS.gov/
ResearchPayrollTC. Also see Adjusting tax liability for the
qualified small business payroll tax credit for increasing
research activities reported on line 11, later.
Certification program for professional employer organizations (PEOs). The Stephen Beck, Jr., ABLE Act of 2014
required the IRS to establish a voluntary certification program
for 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
Feb 13, 2020

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 for
employment tax purposes 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. To become a CPEO, the organization must
apply through the IRS Online Registration System. For more
information or to apply to become a CPEO, go to IRS.gov/
CPEO.
CPEOs generally must file Form 941-SS 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#RP-2017-14.
Outsourcing payroll duties. Generally, as an employer,
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. Before 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. 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 for
employment tax purposes 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.
Aggregate Form 941-SS filers. Agents and CPEOs must
complete Schedule R (Form 941) when filing an aggregate
Form 941-SS. Aggregate Forms 941-SS 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 unless you’re a state or local
government agency acting as an agent under the special
procedures provided in Rev. Proc. 2013-39, 2013-52 I.R.B.
830, available at IRS.gov/irb/2013-52_IRB#RP-2013-39.
Aggregate Forms 941-SS are also filed by CPEOs approved
by the IRS under section 7705. To become a CPEO, the
organization must apply through the IRS Online Registration

Cat. No. 35530F

• 800-733-4829 (TDD).
• 800-244-4829 (Spanish).
• 303-967-5916 (toll call).

System at IRS.gov/CPEO. 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-SS and Schedule R (Form 941) 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#RP-2017-14.

Additional information about EFTPS is available in Pub.
966.
For an EFTPS deposit to be on time, you must
submit the deposit by 8 p.m. Eastern time the day
CAUTION before the date the deposit is due. See section 8 of
Pub. 80 for details.

!

If both an employer and a section 3504 authorized
TIP agent paid wages to an employee during a quarter,
or if both an employer and a CPEO paid wages to an
employee during a quarter, both the employer and the
section 3504 authorized agent (or the CPEO, if applicable)
should file Form 941 or Form 941-SS, as appropriate,
reporting the wages each entity paid to the employee during
the applicable quarter and issue Forms W-2, W-2AS,
W-2CM, W-2GU, or W-2VI, as appropriate, reporting the
wages each entity paid to the employee during the year.

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 make a same-day wire payment. 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 8 of Pub. 80.

Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. Qualified
tax-exempt organizations that hire eligible unemployed
veterans may be able to 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 2013, the credit for COBRA premium
assistance payments can't be claimed on Form 941-SS.
Instead, after filing your Form 941-SS, 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-SS for
the quarter may result in errors or delays in processing your
Form 941-X. For more information, see the Instructions for
Form 941-X.

Electronic filing and payment. 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, the IRS offers you convenient programs to make filing
and paying easier. Spend less time worrying about 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 one of the numbers
provided under Federal tax deposits must be made by
electronic funds transfer (EFT), earlier.
• For electronic filing of Forms W-2AS, W-2CM, W-2GU,
and W-2VI, go to SSA.gov/employer. You may be required to
file Forms W-2 electronically. For details, see the General
Instructions for Forms W-2 and W-3.

If you’re entitled to claim the COBRA premium

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

Form 941-SS, file a Form 941-SS with -0- entered on
line 14 before filing a Form 941-X to claim the credit.
Correcting a previously filed Form 941-SS. If you
discover an error on a previously filed Form 941-SS, make
the correction using Form 941-X. Form 941-X is filed
separately from Form 941-SS. For more information, see the
Instructions for Form 941-X, section 9 of Pub. 80, or go to
IRS.gov/CorrectingEmploymentTaxes.
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
wire payment on your behalf. EFTPS is a free service
provided by the Department of the 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 8 of Pub. 80. To get more information about EFTPS
or to enroll in EFTPS, go to EFTPS.gov or call one of the
following numbers.
• 800-555-4477 (toll free; for use by U.S. Virgin Islands
only).

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-SS 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.
Credit or debit card payments. You can pay the balance
due shown on Form 941-SS by credit or debit card. Your
payment will be processed by a payment processor who will
charge a processing fee. Don't use a credit or debit card to
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Instructions for Form 941-SS (Rev. 1-2020)

make federal tax deposits. For more information on paying
your taxes with a credit or debit card, go to IRS.gov/
PayByCard.

employees who are subject to income tax withholding for
these jurisdictions.

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.

• Wages/tips subject to social security and Medicare taxes.
• Both the employer and the employee share of social

Use Form 941-SS to report the following amounts.

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.

Paid preparers. If you use a paid preparer to complete
Form 941-SS, the paid preparer must complete and sign the
paid preparer's section of the form.
Where can you get telephone help? For answers to your
questions about completing Form 941-SS or tax deposit
rules, call the IRS at one of the numbers listed below.
• 800-829-4933 (toll free; for use by U.S. Virgin Islands only)
or 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.
• 267-941-1000 (toll call) Monday–Friday from 6:00 a.m. to
11:00 p.m. Eastern time.

Don't use Form 941-SS if you have both employees who
are subject to U.S. income tax withholding and employees
who aren't subject to U.S. income tax withholding. Instead,
you must file only Form 941 (or Form 944) and include all of
your employees' wages on that form.
Don't use Form 941-SS 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. Also, don't use Form 941-SS to report
unemployment taxes. Report unemployment taxes (U.S.
Virgin Islands employers only) on Form 940, Employer's
Annual Federal Unemployment (FUTA) Tax Return.

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.

After you file your first Form 941-SS, you must file a return
each quarter, even if you have no tax liability to report, unless
you filed a final return or one of the exceptions listed next
applies.

General Instructions:
Purpose of Form 941-SS

Exceptions

Special rules apply to some employers.
• If you received notification to file Form 944, you must file
Form 944 annually; don't file Form 941-SS quarterly.
• Seasonal employers don't have to file a Form 941-SS 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-SS. The IRS generally
won't inquire about unfiled returns if at least one taxable
return is filed each year. However, you must check the box
on line 18 on every quarterly return you file. Otherwise, the
IRS will expect a return to be filed for each quarter.
• Employers of household employees don't usually file
Form 941-SS. See Pub. 80, Pub. 926, and Schedule H (Form
1040 or 1040-SR) for more information.
• Employers of farm employees don't file Form 941-SS for
wages paid for agricultural labor. See Form 943 and Pub. 51
for more information.

Use Form 941-SS to report social security and Medicare
taxes for workers in American Samoa, Guam, the
Commonwealth of the Northern Mariana Islands, and the
U.S. Virgin Islands.
Pub. 80 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.
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 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.

If none of the above exceptions applies and you

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

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

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.

Requesting To File Forms 941-SS Instead of
Form 944, or Requesting To File Form 944
Instead of Forms 941-SS

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
Instructions for Form 941-SS (Rev. 1-2020)

Requesting to file Forms 941-SS instead of Form 944.
Employers in American Samoa, Guam, the Commonwealth
of the Northern Mariana Islands, and the U.S. Virgin Islands
that would otherwise be required to file Form 944, Employer's
ANNUAL Federal Tax Return, may contact the IRS to request
to file quarterly Forms 941-SS instead of annual Form 944.
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To request to file quarterly Forms 941-SS to report your
social security and Medicare taxes for the 2020 calendar
year, you must either call the IRS at 800-829-4933 (U.S.
Virgin Islands only) or 267-941-1000 (toll call) between
January 1, 2020, and April 1, 2020, or send a written request
postmarked between January 1, 2020, and March 16, 2020.
After you contact the IRS, the IRS will send you a written
notice that your filing requirement has been changed to
Forms 941-SS. You must receive written notice from the IRS
to file Forms 941-SS 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 2020.

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-SS for a particular quarter is your final return,
check the box on line 17 and enter the final date you 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.
See Terminating a business in the General Instructions for
Forms W-2 and W-3 for information about earlier dates for
the expedited furnishing and filing of the following Wage and
Tax Statements when a final Form 941-SS is filed.
• W-2AS, American Samoa.
• W-2CM, Commonwealth of the Northern Mariana Islands.
• W-2GU, Guam.
• W-2VI, U.S. Virgin Islands.

Requesting to file Form 944 instead of Forms 941-SS. If
you’re required to file Forms 941-SS but believe your
employment taxes for 2020 will be $1,000 or less, you may
request to file Form 944 instead of Forms 941-SS by calling
the IRS at 800-829-4933 (U.S. Virgin Islands only) or
267-941-1000 (toll call) between January 1, 2020, and April
1, 2020, or sending a written request postmarked between
January 1, 2020, and March 16, 2020. 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-SS before you may file this form. If you don't
receive this notice, you must file Forms 941-SS for calendar
year 2020.

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.

When Must You File?

Where to send written requests. Written requests should
be sent to:

File your initial Form 941-SS for the quarter in which you first
paid wages that are subject to social security and Medicare
taxes. See the table below titled When To File Form 941-SS.

Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0038

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.

For more information about these procedures, see Rev.
Proc. 2009-51, 2009-45 I.R.B. 625, available at IRS.gov/irb/
2009-45_IRB#RP-2009-51.

File Form 941-SS only once for each quarter. If you filed
electronically, don't file a paper Form 941-SS. For more
information about filing Form 941-SS electronically, see
Electronic filing and payment, earlier.

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

When To File Form 941-SS

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

Your Form 941-SS is due by the last day of the month that follows the end of the
quarter.

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.

The Quarter Includes . . .

Quarter Ends

Form 941-SS
Is Due

1. January, February, March

March 31

April 30

2. April, May, June

June 30

July 31

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 Pub. 1635 and section 1 of Pub. 80 for more
information.

3. July, August, September

September 30

October 31

4. October, November, December

December 31

January 31

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-SS by May 10 if you made
timely deposits in full payment of your taxes for the first
quarter.

Attach a statement to your return with:

• The new owner's name (or the new name of the business);
• 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 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
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Instructions for Form 941-SS (Rev. 1-2020)

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

service (PDS) on or before the due date. If you don't follow
these guidelines, we generally will consider Form 941-SS
filed when it is actually received. For more information about
PDSs, see Where Should You File, later.
If any due date for filing falls on a Saturday, Sunday, or
legal holiday, you may file your return on the next business
day.

Check the Box for the Quarter

How Should You Complete Form
941-SS?

Under “Report for this Quarter of 2020” at the top of Form
941-SS, 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.

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. 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.”

Completing and Filing Form 941-SS

Make entries on Form 941-SS as follows to enable accurate
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. Always show an amount for cents, even if it is zero.
• Leave blank any data field (except lines 1 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.

If you use a tax preparer to fill out Form 941-SS, make
sure the preparer shows your business name exactly as it
appeared when you applied for your EIN.
Employer identification number (EIN). To make sure that
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 800-829-4933 (toll free; for use by U.S. Virgin
Islands only) or 267-941-1099 (toll call).
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 the principal business was
created outside of the United States or U.S. territories, you
may also apply for an EIN by calling 267-941-1099 (toll call).
If you haven't received your EIN by the due date of Form
941-SS, write “Applied For” and the date you applied in this
entry space.

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 don't agree, you
may be contacted by the IRS or the Social Security
Administration (SSA). The following amounts are reconciled.

• Social security wages.
• Social security tips.
• Medicare wages and tips.
Use Schedule D (Form 941) 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,
Corrected Wage and Tax Statement, that were caused by
acquisitions, statutory mergers, or consolidations. For more
information, see 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 I.R.B. 2004-34 at
IRS.gov/irb/2004-34_IRB#RP-2004-53.

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.

!

Always be sure the EIN on the form you file exactly

Where Should You File?

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-SS with an incorrect EIN or using
another business's EIN may result in penalties and delays in
processing your return.

You're encouraged to file Form 941-SS electronically. Go to
IRS.gov/EmploymentEfile for more information on electronic
filing. If you file a paper return, where you file depends on
whether you include a payment with Form 941-SS.

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
Instructions for Form 941-SS (Rev. 1-2020)

-5-

If you’re in . . .

Without a
payment . . .

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

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

With a payment . . .
Internal Revenue
Service
P.O. Box 932100
Louisville, KY
40293-2100

If you’re in . . .

Without a
payment . . .

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

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.

With a payment . . .
Internal Revenue
Service
P.O. Box 932100
Louisville, KY
40293-2100

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.

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

PDSs can't deliver to P.O. boxes. You must use the U.S.
Postal Service to mail an item to a P.O. box address. 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. Select the address on the webpage
that is given for the Ogden Submission Processing Center.

!

CAUTION

SSA.

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 filing address may have changed from that
used to file your employment tax return in prior years.
Don't send Form 941-SS or any payments to the

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-SS during the
previous 4-quarter lookback period (July 1 of the second
preceding calendar year through June 30 of the preceding
calendar year). See section 8 of Pub. 80 for details. If you
filed Form 944 in either 2018 or 2019, your lookback period is
the 2018 calendar year.

Depositing Your Taxes
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.

!

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.

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 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
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 8 of Pub. 80 for
information about payments made under the accuracy of
deposits rule and for rules about federal tax deposits.

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 8 of
Pub. 80 for more information.

!

What About Penalties and Interest?
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-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 Copy A of Forms W-2AS, W-2CM,
W-2GU, or W-2VI 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 section 8 of Pub. 80
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-SS, 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

Use Form 843 to request abatement of assessed
penalties or interest. Don't request abatement of assessed
penalties or interest on Form 941-SS or Form 941-X.
If you receive a notice about a penalty after you file this
return, reply to the notice with an explanation and we will
determine if you meet reasonable-cause criteria. Don't attach
an explanation when you file your return.
-6-

Instructions for Form 941-SS (Rev. 1-2020)

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

If federal income, social security, and Medicare taxes
that must be withheld (that is, trust fund taxes) 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 8 of Pub. 80.

!

If no wages, tips, and compensation 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 12 of Pub. 80.
For religious exemptions, see section 4 of Pub. 15-A.
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.

!

Adjustment of Tax on Tips

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 a negative adjustment on line 9 the
total uncollected employee share of the social security and
Medicare taxes.

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

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 payroll deductions. Don't include
tips on this line. For information on types of wages subject to
social security taxes, see section 4 of Pub. 80.
For 2020, 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 $137,700 for
the year. However, continue to withhold Medicare taxes for
the whole year on wages and tips even when the social
security wage base of $137,700 has been reached.

Where Can You Obtain Forms?
See Pub. 80 for information on ordering IRS forms. You may
also be able to get some IRS forms at the addresses listed
next.
American Samoa

Tax Office
Executive Office Building, First Floor
Pago Pago, AS 96799

Commonwealth of the
Northern Mariana Islands

CNMI Division of Revenue and Taxation
Joeten Dandan Commercial Center
Saipan, MP 96950

Guam

Department of Revenue and Taxation
Government of Guam
1240 Army Drive
Barrigada, GU 96913

U.S. Virgin Islands

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

Bureau of Internal Revenue
6115 Estate Smith Bay
St. Thomas, VI 00802

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 $137,700 for the
year. Include all tips your employees reported to you even if
you were unable to withhold the employee tax of 6.2%. You
will reduce your total taxes by the amount of any uncollected
employee share of social security and Medicare taxes on tips
later on line 9; see Current quarter's adjustments for tips and
group-term life insurance, later. Don't include service charges
on line 5b. For details about the difference between tips and
service charges, see Rev. Rul. 2012-18, 2012-26 I.R.B.
1032, available at IRS.gov/irb/2012-26_IRB#RR-2012-18.
Your employee must report cash tips to you by the 10th
day of the month after the month the tips are received. Cash
tips include tips paid by cash, check, debit card, and credit
card. 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.

Specific Instructions:
Part 1: Answer These Questions for
This Quarter
1. Number of Employees Who Received Wages,
Tips, or Other Compensation
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 Form
941-SS. Don't include:
• Household employees,
• Employees in nonpay status for the pay period,
• Farm employees,
• Pensioners, or
• Active members of the Armed Forces.

Instructions for Form 941-SS (Rev. 1-2020)

-7-

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#RR-2012-18.

Employees may use Form 4070 (available only in Pub. 1244)
or submit a written statement or electronic tip record.
Don't include allocated tips on this line. Instead, report
them on Form 8027. Allocated tips aren't reportable on Form
941-SS and aren't subject to withholding of social security or
Medicare taxes.
line 5b (column 1)
x   0.124
line 5b (column 2)

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-SS for a monthly schedule depositor or
Schedule B (Form 941) for a semiweekly schedule
depositor).

5c. Taxable Medicare wages and 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% (0.0145).

6. Total Taxes Before Adjustments

Add 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.

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

7–9. Tax Adjustments

For more information, see sections 4, 5, and 7 of Pub. 80.
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
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 Employment and Payments, in section 12 of Pub. 80. 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% (0.009).

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.
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-SS. See
section 9 of Pub. 80.
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. This adjustment may be a positive or negative
amount.
8. Current quarter's adjustment for sick pay. Enter a
negative 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 a negative
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 a negative adjustment
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
-8-

Instructions for Form 941-SS (Rev. 1-2020)

make federal tax deposits (see Must You Deposit Your
Taxes, earlier) or you’re a monthly schedule depositor
making a payment under the accuracy of deposits rule, 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.

Prior quarter's adjustments. If you need to correct any
adjustment reported on a previously filed Form 941-SS,
complete and file Form 941-X. Form 941-X is an adjusted
return or claim for refund and is filed separately from Form
941-SS. See section 9 of Pub. 80.

10. Total Taxes After Adjustments

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

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(SS),
Payment Voucher.

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

If you pay by check or money order, make it payable to
“United States Treasury.” Enter your EIN, “Form 941-SS,”
and the tax period (“1st Quarter 2020,” “2nd Quarter 2020,”
“3rd Quarter 2020,” or “4th Quarter 2020”) on your check or
money order. Complete Form 941-V(SS) and enclose it with
Form 941-SS.

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.

If line 12 is $2,500 or more on both your prior and current
quarter Form 941-SS, 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.

• 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-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. 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).

!

CAUTION

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, visit the IRS website at IRS.gov/OPA.
Under an installment agreement, you can pay what you
owe in monthly installments. There are certain conditions you
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 8 of Pub. 80.
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

Enter your deposits for this quarter, including any
overpayment from a prior quarter that you applied to this
return. Also include in the amount shown any overpayment
that you applied from filing Form 941-X or Form 944-X,
Adjusted Employer's ANNUAL Federal Tax Return or Claim
for Refund, in the current quarter.

15. Overpayment

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

14. Balance Due

If line 12 is more than line 13, enter the difference on line 14.
Otherwise, see Overpayment, later.

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.

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 8 of Pub. 80 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.

If you were required to make federal tax deposits, pay the
amount shown on line 14 by EFT. If you weren't required to
Instructions for Form 941-SS (Rev. 1-2020)

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

-9-

Complete Both Pages

semiweekly schedule depositor. Check the third box on
line 16.
You must complete Schedule B (Form 941) and submit it
with your Form 941-SS. Don't file Schedule B (Form 941)
with your Form 941-SS 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.

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

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

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 16 or Schedule B
(Form 941) to be more than the total tax liability reported on
line 12.
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. Don't reduce
your monthly tax liability reported on line 16 or your daily tax
liability reported on Schedule B (Form 941) below zero.
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.

16. Tax Liability for the Quarter

Check one of the boxes on line 16. Follow the instructions for
each box to determine if you need to enter your monthly tax
liability on Form 941-SS or your daily tax liability on
Schedule B (Form 941).
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 first box on line 16 and
go to Part 3.
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).

!

Monthly schedule depositor. 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 8 of Pub. 80 applies. Check the
second 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-SS taxes reported for the
lookback period is $50,000 or less. The lookback period is
the 4 consecutive quarters ending on June 30 of the prior
year. For 2020, the lookback period begins July 1, 2018, and
ends June 30, 2019. For details on the deposit rules, see
section 8 of Pub. 80. If you filed Form 944 in 2018 or 2019,
your lookback period is the 2018 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 enter your liabilities
when required or if you’re a semiweekly schedule depositor
and report 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 8 of Pub. 80 for
more information.

!

Example. Rose Co. is an employer with a calendar tax
year that filed its timely income tax return on April 15, 2020.
Rose Co. elected to take the qualified small business payroll
tax credit for increasing research activities on Form 6765.
The third quarter of 2020 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 2020. 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
2020 that includes wages subject to social security tax by the
lesser of (1) its share of social security tax on the wages, or
(2) the available payroll tax credit. If the payroll tax credit

Reporting adjustments from lines 7–9 on line 16. If
your net adjustment during a month is negative and it
exceeds your total tax liability for the month, don't enter a
negative amount for the month. Instead, enter "-0-" for the
month and carry over the unused portion of the adjustment to
the next month.
Semiweekly schedule depositor. If you reported more
than $50,000 of taxes for the lookback period, you’re a
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Instructions for Form 941-SS (Rev. 1-2020)

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 wants to terminate the
authorization, write to the IRS office for your location using
the Without a payment address under Where Should You
File, earlier.

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 2021.

Part 5: Sign Here (Approved Roles)
Complete all information and sign Form 941-SS. 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 partner, member, 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.

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-SS is
your final return, check the box on line 17 and enter the final
date you paid wages in the space provided. For additional
filing requirements, see If Your Business Has Closed, earlier.

Form 941-SS may be signed by a duly authorized agent of
the taxpayer if a valid power of attorney has been filed.

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

Alternative signature method. Corporate officers or duly
authorized agents may sign Form 941-SS 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#RP-2005-39.

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-SS from you
throughout the year because you haven't paid wages
regularly.
Generally, we won't ask about unfiled returns if at least
one taxable return is filed each year. However, you must
check the box on line 18 on every Form 941-SS you file.
Otherwise, the IRS will expect a return to be filed for each
quarter.

Paid Preparer Use Only

A paid preparer must sign Form 941-SS and provide the
information in the Paid Preparer Use Only section of Part 5 if
the preparer was paid to prepare Form 941-SS 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.

Also, when you complete 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’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.

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. 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.

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
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.

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.
• 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.
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.
Instructions for Form 941-SS (Rev. 1-2020)

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How To Get Forms, Instructions, and
Publications From the IRS
You can view, download, or print most of the forms,
instructions, and publications you may need at
IRS.gov/Forms. Otherwise, you can go to IRS.gov/
OrderForms to place an order and have them mailed to you.

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Instructions for Form 941-SS (Rev. 1-2020)