As an employer, there are two sides of the coin when it comes to Social Security and Medicare, or as they commonly referred, FICA taxes. Not only do you have to withhold money from your employees’ paychecks to go towards both, but you have to match the contributions on your end as well.
Like everything you do as an employer in terms of your taxes, this also needs to be both documented and proven. This comes in the form of filing your IRS Form 941, the Employer’s Quarterly Federal Tax Return. The purpose of which is everything we’ve mentioned already: to document the money withheld to contribute to Social Security and Medicare.
When Is The Deadline?
This form, as it says in the name, is filed quarterly. Typically, the due date is the last day of the month following the end of the reporting period. The exception being when that day falls on a weekend. For instance, the third quarter covers July, August, and September, and the deadline falls on November 2nd, the Monday after the weekend.
What If My Business Was Closed?
In the wake of COVID-19, this is a very valid question. Whether you have taxable income or not, you will need to file Form 941.
There are exemptions to this. If you are a seasonal employer who only opens during specific times of the year and during the reporting period, you didn’t pay out any wages (tips included), then you will not have to file.
This also extends to if you have closed your business permanently. Granted, you would have had to file your final tax return. I also want to take the time to point out that you might employ someone in a limited capacity. Maybe you have a housekeeper. Do you need to file a Form 941? For these employees, you should look into a Form 944. These are meant for people whose annual liability is $1000 or less. And these are paid yearly rather than quarterly.
Filing Your Forms
You can still file these forms by mail. Conveniently, these will also be accepted electronically. However, to submit your Form 941 electronically, you will need an IRS-authorized e-file provider. These are companies that have submitted applications to the IRS and passed their suitability requirements. ExpressEfile, for instance, is one such company. As an employer, you can fill out your forms and submit them electronically in minutes.
Part of being able to submit your filing within minutes is you having access to the correct documentation. Another part is knowing that your withholding calculations are accurate. 123PayStubs is your solution to both. Not only can you create pay stubs for your employees, but they will include the proper calculations for Social Security and Medicare withholdings along with all pertinent state and federal taxes. Let 123PayStubs make your tax obligations stress free.