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Where to Download 941 Form 2021 and How to Complete It Correctly



How to Download Form 941 for 2021: A Complete Guide




If you are an employer who pays wages to employees, you need to file Form 941 every quarter to report your federal income tax, Social Security tax, and Medicare tax withholding and payments. In this article, we will show you how to download Form 941 for 2021, how to fill it out, and how to submit it to the IRS. We will also answer some frequently asked questions about Form 941.




download 941 form 2021



What is Form 941 and who needs to file it?




Form 941, also known as Employer's Quarterly Federal Tax Return, is a form that employers use to report their federal payroll taxes. These taxes include:


  • Income tax withheld from employees' wages, tips, and other compensation



  • Social Security tax (6.2% each for employer and employee) and Medicare tax (1.45% each for employer and employee) on taxable wages and tips



  • Additional Medicare Tax (0.9%) withheld from employees' wages that exceed $200,000 in a calendar year



  • Employer's share of Social Security tax and Medicare tax on qualified sick leave wages and qualified family leave wages paid under the Families First Coronavirus Response Act (FFCRA)



  • Employee Retention Credit (ERC) claimed by employers who retained employees during the COVID-19 crisis



  • Credit for qualified sick leave wages and qualified family leave wages paid under the FFCRA



  • Credit for COBRA premium assistance payments made under the American Rescue Plan Act of 2021 (ARPA)



Most employers are required to file Form 941 every quarter, unless they are eligible to file Form 944 (Employer's Annual Federal Tax Return) or Form 943 (Employer's Annual Federal Tax Return for Agricultural Employees). You can find out if you qualify for these forms on the IRS website.


Form 941 basics




Form 941 consists of five parts and two schedules. Here is a brief overview of each part and schedule:


  • Part 1: Answer questions about your business and employees, such as your employer identification number (EIN), name, address, number of employees, wages, tips, and other compensation, federal income tax withheld, taxable Social Security and Medicare wages and tips, total taxes before adjustments, current quarter's adjustments, total taxes after adjustments, total deposits for the quarter, balance due or overpayment, and refund or credit options.



  • Part 2: Report your tax liability by month if your total taxes after adjustments (line 10) are less than $2,500 or you are a monthly schedule depositor. If you are a semiweekly schedule depositor or accumulated $100,000 or more of taxes on any day during the quarter, report your tax liability by semiweekly period on Schedule B (Form 941).



  • Part 3: Report your tax liability for the quarter if you are a seasonal employer or a new employer who did not have any employees during some of the months in the quarter.



  • Part 4: Claim any credits or adjustments that apply to you , such as the ERC, the FFCRA credits, the COBRA credit, the credit for federal tax paid on fuels, and the sick pay exclusion. You may need to attach Form 8974 (Qualified Small Business Payroll Tax Credit for Increasing Research Activities) or Form 5884-C (Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans) if you are claiming these credits.



  • Part 5: Provide information about a third-party designee who can discuss your Form 941 with the IRS and sign your form under penalties of perjury.



  • Schedule A (Form 941): Report your total liability for the quarter and any qualified small business payroll tax credit for increasing research activities. You must complete this schedule if you are claiming the ERC, the FFCRA credits, or the COBRA credit, or if you are a semiweekly schedule depositor or accumulated $100,000 or more of taxes on any day during the quarter.



  • Schedule B (Form 941): Report your tax liability by semiweekly period. You must complete this schedule if you are a semiweekly schedule depositor or accumulated $100,000 or more of taxes on any day during the quarter.



Form 941 filing deadlines




You must file Form 941 by the last day of the month that follows the end of the quarter. For example, for the first quarter of 2021 (January to March), you must file Form 941 by April 30, 2021. Here are the filing deadlines for each quarter of 2021:


QuarterMonthsDeadline


FirstJanuary to MarchApril 30, 2021


SecondApril to JuneAugust 2, 2021


ThirdJuly to SeptemberNovember 1, 2021


FourthOctober to DecemberJanuary 31, 2022


If the deadline falls on a Saturday, Sunday, or legal holiday, you can file on the next business day.


Form 941 penalties




If you fail to file Form 941 on time or pay your taxes in full, you may face penalties from the IRS. The penalties are based on the amount of tax owed and the number of days late. Here are some common penalties that may apply to you:


  • Late filing penalty: The penalty is 5% of the unpaid tax for each month or part of a month that your return is late, up to a maximum of 25%. If your return is more than 60 days late, you will also pay a minimum penalty of $435 or the balance of the tax due on your return, whichever is less.



  • Late payment penalty: The penalty is 0.5% of the unpaid tax for each month or part of a month that your payment is late, up to a maximum of 25%. The penalty increases to 1% per month if your payment is still unpaid after 10 days following a notice of intent to levy. The penalty increases to 2% per month if your payment is still unpaid after receiving notice and demand for immediate payment from the IRS.



  • Late deposit penalty: The penalty varies depending on how many days late your deposit is and whether you made arrangements to pay by the due date. The penalty rates are as follows:



  • 2% - Deposits made 1 to 5 days late



  • 5% - Deposits made 6 to 15 days late



  • 10% - Deposits made more than 15 days late or within 10 days of receiving notice and demand for payment from the IRS



  • 15% - Deposits not made or paid directly to an IRS employee or agent after receiving notice and demand for payment from the IRS



  • Failure to deposit penalty: The penalty is 10% of the amount of tax due if you fail to use electronic funds transfer (EFT) to make a deposit when required. You must use EFT to make all federal tax deposits unless your total deposits for a calendar year are less than $2,500.



  • Dishonored payment penalty: The penalty is 2% of the amount of tax due if your check or other form of payment is dishonored by your financial institution due to insufficient funds or other reasons. The penalty is limited to $1,270 for payments of $1,250 or more .



You can avoid or reduce these penalties by filing and paying on time, requesting an extension of time to file, or applying for an installment agreement if you cannot pay in full. You can also request a penalty abatement if you have reasonable cause for your failure to file or pay.


How to download Form 941 for 2021




There are three ways you can download Form 941 for 2021: from the IRS website, from a tax software, or from a payroll service provider. Here are the steps for each method:


Download Form 941 from the IRS website




The easiest way to download Form 941 for 2021 is to visit the IRS website and download the PDF file of the form. You can also download the instructions and schedules for Form 941 from the same page. You can print the form and fill it out by hand, or you can fill it out on your computer using a PDF reader software. If you choose to fill it out on your computer, make sure you save a copy of the completed form before printing it.


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Tips for downloading and filling out the Form.


Download Form 941 from a tax software




Another way to download Form 941 for 2021 is to use a tax software that supports Form 941. Some examples of tax software that offer this feature are TurboTax, H&R Block, and TaxAct. You can sign up for a free or paid account with these software and access Form 941 online. The software will guide you through the process of filling out the form and will perform calculations and error checks for you. You can also e-file your Form 941 through the software if you have an EIN and a PIN from the IRS.


Download Form 941 from a payroll service provider




The third way to download Form 941 for 2021 is to use a payroll service provider that handles Form 941 for you. Some examples of payroll service providers that offer this service are ADP, Paychex, and Gusto. You can sign up for a free trial or a paid subscription with these providers and manage your payroll online. The providers will calculate and deposit your payroll taxes for you and will generate Form 941 for each quarter. You can download, print, or e-file your Form 941 from their website or app.


How to fill out Form 941 for 2021




Once you have downloaded Form 941 for 2021, you need to fill it out with accurate and complete information. Here are some tips and instructions for each part of the form:


Part 1: Answer questions about your business and employees




In this part, you need to provide basic information about your business and employees, such as:


  • Your EIN, name, trade name (if any), and address



  • The number of employees who received wages, tips, or other compensation in the quarter



  • The total amount of wages, tips, and other compensation paid to your employees in the quarter



  • The total amount of federal income tax withheld from your employees' wages, tips, and other compensation in the quarter



  • The taxable Social Security wages and tips, and the taxable Medicare wages and tips paid to your employees in the quarter. You need to multiply these amounts by the applicable tax rates (6.2% for Social Security and 1.45% for Medicare) to get the tax amounts.



  • The total taxes before adjustments, which is the sum of lines 3, 5a (column 1), and 5b (column 1)



  • The current quarter's adjustments, which include fractions of cents, sick pay, tips, group-term life insurance, COBRA premium assistance payments, and qualified small business payroll tax credit for increasing research activities. You need to attach Schedule A (Form 941) if you are claiming any of these adjustments.



  • The total taxes after adjustments, which is the difference between lines 10 and 11



  • The total deposits for this quarter, which include all federal tax deposits made during the quarter plus any overpayment applied from a prior quarter



  • The balance due or overpayment, which is the difference between lines 12 and 13. If line 12 is more than line 13, you have a balance due. If line 13 is more than line 12, you have an overpayment.



  • The refund or credit options, which allow you to choose how you want to apply your overpayment. You can either request a refund or apply it to your next return.



Part 2: Report your tax liability by month or semiweekly




In this part, you need to report your tax liability by month or semiweekly, depending on your deposit schedule. Your deposit schedule is based on your total tax liability reported on Form 941 in a lookback period. The lookback period is the 12-month period ending on June 30 of the prior year. For example, for 2021, the lookback period is July 1, 2019, to June 30, 2020.


If your total tax liability for the lookback period was $50,000 or less, you are a monthly schedule depositor. This means you must deposit your taxes by the 15th day of the following month. For example, for the first quarter of 2021, you must deposit your taxes by February 15, March 15, and April 15.


If your total tax liability for the lookback period was more than $50,000, you are a semiweekly schedule depositor. This means you must deposit your taxes by the following Wednesday or Friday, depending on the day of the week you pay your employees. For example, for the first quarter of 2021, if you pay your employees on Wednesday, Thursday, or Friday, you must deposit your taxes by the following Wednesday. If you pay your employees on Saturday, Sunday, Monday, or Tuesday, you must deposit your taxes by the following Friday.


If you are a monthly schedule depositor, you can report your tax liability by month on line 16 of Form 941. If you are a semiweekly schedule depositor or accumulated $100,000 or more of taxes on any day during the quarter, you must report your tax liability by semiweekly period on Schedule B (Form 941).


Part 3: Report your tax liability for the quarter




In this part, you need to report your tax liability for the quarter if you are a seasonal employer or a new employer who did not have any employees during some of the months in the quarter. A seasonal employer is one who does not have to file Form 941 for every quarter of the year because they do not pay wages in some quarters. A new employer is one who started their business during the current quarter.


If you are a seasonal employer or a new employer, you can check the box on line 18 and enter the months that you paid wages to employees in the quarter. For example, if you paid wages only in March of the first quarter of 2021, you can check the box and enter "03" in the space provided.


Part 4: Claim any credits or adjustments




In this part, you need to claim any credits or adjustments that apply to you , such as the ERC, the FFCRA credits, the COBRA credit, the credit for federal tax paid on fuels, and the sick pay exclusion. You may need to attach Form 8974 (Qualified Small Business Payroll Tax Credit for Increasing Research Activities) or Form 5884-C (Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans) if you are claiming these credits.


  • Line 19: Enter the amount of ERC you are claiming for the quarter. The ERC is a refundable tax credit that allows eligible employers to reduce their payroll tax liability by up to 70% of qualified wages paid to employees during the COVID-19 crisis. You can claim up to $7,000 per employee per quarter in 2021. You must complete and attach Schedule A (Form 941) if you are claiming this credit.



  • Line 20: Enter the amount of FFCRA credits you are claiming for the quarter. The FFCRA credits are refundable tax credits that allow eligible employers to reduce their payroll tax liability by the amount of qualified sick leave wages and qualified family leave wages paid to employees under the FFCRA. You can claim up to $511 per day for up to 10 days per employee for qualified sick leave wages, and up to $200 per day for up to 10 weeks per employee for qualified family leave wages. You must complete and attach Schedule A (Form 941) if you are claiming these credits.



  • Line 21: Enter the amount of COBRA credit you are claiming for the quarter. The COBRA credit is a refundable tax credit that allows eligible employers to reduce their payroll tax liability by the amount of COBRA premium assistance payments made to qualified beneficiaries under the ARPA. You can claim 100% of the premiums paid for each month from April 2021 to September 2021. You must complete and attach Schedule A (Form 941) if you are claiming this credit.



  • Line 22: Enter the amount of credit for federal tax paid on fuels you are claiming for the quarter. This credit is a nonrefundable tax credit that allows eligible employers to reduce their payroll tax liability by the amount of federal excise tax paid on certain fuels used for a nontaxable purpose, such as off-highway business use or farming. You must attach Form 4136 (Credit for Federal Tax Paid on Fuels) if you are claiming this credit.



  • Line 23: Enter the amount of sick pay exclusion you are claiming for the quarter. This exclusion allows eligible employers to reduce their taxable Social Security and Medicare wages and tips by the amount of sick pay paid to employees by a third-party payer, such as an insurance company or a trust fund. You must attach Form 8922 (Third-Party Sick Pay Recap) if you are claiming this exclusion.



Part 5: Provide information about third-party designee and signature




In this part, you need to provide information about a third-party designee who can discuss your Form 941 with the IRS and sign your form under penalties of perjury.


  • Line 24: If you want to allow a person (such as an accountant, a payroll service provider, or an employee) to discuss your Form 941 with the IRS, check the "Yes" box and enter their name, phone number, and personal identification number (PIN). If you do not want to allow anyone to discuss your Form 941 with the IRS, check the "No" box.



  • Line 25: Sign your name, enter your title, enter your phone number, and enter the date. If you are filing Form 941 online, you can use an electronic signature instead of a handwritten signature. You can also use an authorized agent's signature if you have a valid power of attorney.



How to submit Form 941 for 2021




After you have filled out Form 941 for 2021, you need to submit it to the IRS by the filing deadline. There are two ways you can submit Form 941: electronically or by mail.


E-file Form 941 through IRS-approved providers




The preferred way to submit Form 941 is to e-file it through an IRS-approved provider. E-filing has many benefits, such as faster processing, fewer errors, confirmation of receipt, and security of data. You can e-file Form 941 through one of these methods:


  • E-file using a tax software that supports Form 941, such as TurboTax, H&R Block, or TaxAct. You will need an EIN and a PIN from the IRS to e-file your form.



  • E-file using a payroll service provider that handles Form 941 for you, such as AD P, Paychex, or Gusto. You will need to authorize them to file your form on your behalf.



  • E-file using the IRS e-file system. You will need to enroll in the IRS e-file program and obtain an Electronic Filing Identification Number (EFIN) and a PIN from the IRS. You can find more information on how to enroll and e-file on the IRS website.



Mail Form 941 to the IRS address based on your location




The alternative way to submit Form 941 is to mail it to the IRS address based on your location and whether you are including a payment or not. You can find the correct address for your location on the IRS website or in the instructions for Form 941. You should use the U.S. Postal Service or a private delivery service that is approved by the IRS, such as FedEx, UPS, or DHL. You should also keep a proof of mailing or delivery for your records.


If you are mailing Form 941 with a payment, you should make your check or money order payable to "United States Treasury" and write your EIN, "Form 941", and the quarter and year on it. You should also attach Form 941-V (Payment Voucher) to your payment and mail them together in the same envelope.


Conclusion




Form 941 is an important form that employers need to file every quarter to report their federal payroll taxes. In this article, we have shown you how to download Form 941 for 2021, how to fill it out, and how to submit it to the IRS. We hope this guide has been helpful and informative for you.


If you have any questions or need assistance with Form 941, you can contact the IRS at 1-800-829-4933 or visit their website. You can also consult a tax professional or a payroll service provider for more guidance and support.


FAQs




Here are some frequently asked questions about Form 941:


  • Q: How do I correct a mistake on Form 941?



  • A: If you discover an error on Form 941 after you have filed it, you can correct it by filing Form 941-X (Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund). You should file Form 941-X as soon as possible and follow the instructions on the form.



  • Q: How do I claim a refund or credit for overpaid taxes on Form 941?



  • A: If you have overpaid your taxes on Form 941, you can claim a refund or credit by checking the appropriate box on line 14 of Form 941 and entering the amount of overpayment on line 13. You can also file Form 941-X to claim a refund or credit for a prior quarter.



  • Q: How do I apply for an extension of time to file Form 941?



  • A: If you need more time to file Form 941, you can apply for an extension of time by filing Form 8809 (Application for Extension of Time To File Information Returns) before the due date of Form 941. You can get an automatic 30-day extension by filing this form online or by mail. You can also request an additional 30-day extension by filing another Form 8809 before the end of the first extension period.



  • Q: How do I change my address or business name on Form 941?



  • A: If you have changed your address or business name since you last filed Form 941, you should report the change to the IRS as soon as possible. You can do this by checking the box on line 4 of Form 941 and entering your new address or business name. You can also file Form 8822-B (Change of Address or Responsible Party - Business) to notify the IRS of the change.



  • Q: How do I verify if my Form 941 was received by the IRS?



  • A: If you e-filed your Form 941, you should receive a confirmation email from your e-file provider or from the IRS within 24 hours. You can also check the status of your e-filed return on the IRS website by entering your EIN, PIN, and quarter and year. If you mailed your Form 941, you can call the IRS at 1-800-829-4933 and provide your EIN, quarter and year, and the date you mailed your return. You can also use a proof of mailing or delivery from your postal service or delivery service to verify if your Form 941 was received by the IRS.



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