Form 941 Instructions

If you are a new employer with a new business, you may need Form 941 instructions. Familiarize yourself with this federal tax form through this short overview of the form and instructions.

You will need: 

• Form 941
• Form W2
• Notice 797

1. Use your employer identification number. Type or print your Employer Identification Number (EIN), name and address in the spaces provided on the form. Repeat this information on the second page. Do not use your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
2. Use your legal business name. Use the business name you entered on Form SS-4 when you applied for your EIN. If you are a sole proprietor, enter your full name on the “Name” line and your business name on the “Trade Name” line. If your business name is the same as your name, leave the “Trade Name” line blank.
3. Select the proper reporting quarter. Under “Report For This Quarter,” check the appropriate box of the quarter for which you are reporting. The quarter should be the same as any attached Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors.
4. Complete Form 941. Complete the form in a way that enables accurate scanning and processing. For example, omit dollar signs and decimal points. Leave data fields blank if the value is zero. Enter your name and EIN on all pages and attachments. Staple multiple sheets in the upper left corner.
5. Use other forms if required. Other forms may be required along with Form 941, especially if you are notifying employees about Earned Income Credit (EIC). These additional forms may include Form W-2 and Notice 797, or substitute written statements.
6. Deposit your taxes. The IRS uses different sets of deposit rules to determine when you must deposit withheld income, social security, and Medicare taxes. Depending on the amount of tax liability during a four-quarter “look-back” period, you will pay your deposits on a monthly or semiweekly schedule.
7. Avoid penalties and interest. Avoid paying penalties or interest by filing Form 941 on time; reporting your tax liability accurately; furnishing accurate IRS forms to employees and the IRS; and depositing and paying taxes when they are due.