IRS Form 941

IRS Form 941, also known as the Employer's Quarterly Federal Tax Return, is a form businesses and nonprofit organizations must file with the Internal Revenue Service (IRS) each quarter. It reports payroll taxes withheld from employees’ wages, including federal income tax, Social Security, and Medicare taxes. The form also calculates the employer’s portion of Social Security and Medicare taxes, and reconciles total tax liability with amounts already paid. Accurate and timely filing of Form 941 ensures compliance with federal tax obligations and helps prevent penalties or interest charges. Nonprofits with employees must file this form, even if they are exempt from income tax, to report payroll withholdings and employer tax contributions.