Quarterly Federal Tax Return

What is a Quarterly Federal Tax Return?

A Quarterly Federal Tax Return (Form 941) is a tax form that employers in the United States must file every three months to report wages, withholdings, and payroll taxes. The Internal Revenue Service (IRS) requires businesses to submit this form to track federal income tax, Social Security tax, and Medicare tax withheld from employees’ paychecks.

Who Needs to File Form 941?

Employers who withhold federal income tax and payroll taxes from employees must file Form 941. This includes:

• Businesses with employees earning taxable wages
• Nonprofit organizations with paid staff
• Government entities responsible for payroll taxes

Exceptions: Small businesses with an annual payroll tax liability of less than $1,000 may qualify to file Form 944 instead, which is an annual version of the return.

What Information is Reported on Form 941?

Employers must include the following details:

• Total wages paid to employees during the quarter
• Federal income tax withheld from employees’ paychecks
• Employer and employee portions of Social Security and Medicare taxes
• Adjustments for sick pay, tips, and group-term life insurance
• Tax credits claimed under the Employee Retention Credit (ERC) or other federal relief programs

Filing Deadlines for Form 941

The Quarterly Federal Tax Return is due four times a year, based on the following schedule:

Quarter	Time Period	Filing Deadline
Q1	January – March	April 30
Q2	April – June	July 31
Q3	July – September	October 31
Q4	October – December	January 31 (next year)

Employers who deposit payroll taxes on time and in full may receive an additional 10-day grace period for filing.

How to File Form 941

Businesses can file Form 941 in two ways:

• Electronically via IRS e-file – Faster processing and confirmation of receipt
• By mail – Must be postmarked by the due date to avoid penalties

Employers making payroll tax deposits must use the Electronic Federal Tax Payment System (EFTPS) for secure and timely payments.

Penalties for Late Filing or Payment

Failure to file Form 941 or deposit payroll taxes on time can result in IRS penalties:

• Late filing: 5% of the unpaid tax per month (up to 25%)
• Late payment: 2% to 15% penalty based on delay length
• Failure to deposit taxes: Additional penalties ranging from 2% to 10%

Employers should file and pay on time to avoid these costly penalties.

Key Takeaways

• Form 941 is a mandatory quarterly tax return for employers withholding payroll taxes.
• It reports employee wages, tax withholdings, and employer payroll tax contributions.
• Filing deadlines occur four times a year—April 30, July 31, October 31, and January 31.
• Employers must use EFTPS to deposit payroll taxes securely.
• Late filings and payments result in IRS penalties, making timely compliance essential.

Staying compliant with Quarterly Federal Tax Returns ensures businesses meet their payroll tax obligations and avoid unnecessary penalties. For more details, visit the IRS website.