Quarterly Payments (Form 941)

If you pay wages subject to federal income tax withholding or Social Security and Medicare taxes, you must file Form 941 quarterly to report:

• Wages you've paid.
• Tips your employees reported to you.
• Federal income tax you withheld.
• Both the employer and employee shares 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.

Don't use Form 941 to report backup withholding or income tax withholding on non-payroll payments (pensions, annuities, gambling winnings) - report those on Form 945. Don't use Form 941 to report unemployment taxes - report those on Form 940.

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 applies.