IRS Form 941: Quarterly Payroll Tax Filing Explained

IRS Form 941, the Employer’s Quarterly Federal Tax Return, is a required payroll tax filing for most U.S. businesses with employees. This form reports wages paid, federal income tax withheld, and both the employer and employee portions of Social Security and Medicare taxes. Filing Form 941 accurately and on time is essential to staying compliant with federal payroll tax laws and avoiding costly penalties.

Employers must file Form 941 four times per year, covering the quarters ending March 31, June 30, September 30, and December 31. The form is generally due by the last day of the month following the end of each quarter. If all payroll taxes have been deposited on time, employers may receive a short extension to file.

Form 941 includes several key sections. Employers report total wages, tips, and other compensation, along with federal income tax withheld from employee paychecks. The form also calculates Social Security and Medicare taxes, including any adjustments for sick pay, tips, or group-term life insurance. Employers who claim credits—such as the qualified sick and family leave credits or the Employee Retention Credit during applicable periods—must also report them on Form 941.

Timely tax deposits are just as important as filing the form itself. Payroll taxes must typically be deposited either monthly or semiweekly, depending on the employer’s deposit schedule. Form 941 reconciles those deposits with actual payroll tax liability for the quarter.

Failing to file Form 941 or underpaying payroll taxes can result in penalties, interest, and increased IRS scrutiny. Many business owners choose to work with a bookkeeper, payroll service, or tax professional to ensure accuracy. Properly managing Form 941 filings helps protect your business, maintain compliance, and keep payroll operations running smoothly year-round.