Federal law also requires employers to pay any liability for the employer's portion of social security and Medicare taxes. This portion of social security and Medicare taxes is not withheld from employees.

Use Form 941 to report :

• payroll taxes for the quarter,
• current quarter's adjustments to social security and Medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance, and
• prior quarters' adjustments to payroll taxes.

Do not use the 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.

Who Must File Form 941 ?

If you are an employer, you must file a quarterly Form 941 to report :

• Wages you have paid,
• Tips your employees have received,
• Federal income tax you withheld,
• Both the employer's and the employee's share of social security and Medicare taxes, and
• Advance earned income tax credit (EIC) payments.

After you file your first Form 941, you must file a return for each quarter even if you have no taxes to report.

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 below titled, When To File Form 941.

Then you must file for every quarter after that—every 3 months—even if you have no taxes to report (unless you are a seasonal employer or are filing your final return. See Seasonal employers on page 1 and If your business has closed . . . above).

File Form 941 only once for each quarter. If you filed electronically, do not also file a paper Form 941. For more information about filing Form 941 electronically.

When To File Form 941 ?

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