Federal Payroll Tax Reports
,Luckily on the federal side there is only one form you need to file to report all of your payroll related taxes—Form 941, “Employer’s Quarterly Federal Tax Return.” After you’ve completed your quarterly spreadsheets, it is a rather easy form to fill out.
As you can see in the sample form we completed, the calculations are very simple. Here is a line-by-line explanation:
Line 1: Equals the number of employees on the payroll (only required for March)
Line 2: Total wages
Line 3: Total federal income tax withheld
Line 4: Check off if no wages subject to Social Security and Medicare
Line 5: Calculation for Social Security and Medicare wages and tips
Line 6: Total taxes before adjustments
Line 7: Calculations for adjustments
Line 8: Total taxes after adjustments
Line 9: Report advanced earned income credit (EIC) payments made to employees
Line 10: Subtract line 8 from line 9
Line 11: Total deposits for this quarter
Line 12: COBRA premium assistance payments
Line 13: Add lines 11 and 12
Line 14: Balance due
Line 15: Overpayment
BIZ TIPS
If your tax due for the quarter is less than $2,500, you don’t have to make monthly payments. Instead you can pay the quarterly tax when you file Form 941. There is a voucher as part of Form 941 that small employers can use to pay their taxes.
Sample Federal Form 941, “Employer’s Quarterly Federal Tax Return.”
Surprised it’s that easy? Yes, getting to this point was time-consuming and sometimes confusing, but after you have the numbers calculated the actual reporting is relatively simple. The key is to keep your employee ledgers up-to-date on a monthly basis, so that developing the quarter worksheet is relatively painless.
You may wonder why we developed the worksheet with details about each employee. You don’t need it for the federal quarterly reports, but you will need it for your state reports.
..................Content has been hidden....................
You can't read the all page of ebook, please click here login for view all page.