Employers that pay wages subject to income taxes, Medicare taxes, and social security taxes are required to file Form 941 to report these withholdings.
Once a business files its first Form 941, they are required to file one for every quarter regardless of whether or not they have paid wages. This obligation will end once a business files its final return.
There are a few changes to Form 941 for the first quarter of 2022. These updates are a result of the COVID-19 tax relief programs that have expired.
The lines related to the employee retention credit (11c, 13d, and 22) are now “reserved for future use.”
The lines related to the total advance of credits (13h and 13i,) are now “reserved for future use.”
Line 18 has only one option again, indicating if you are a seasonal employer
Only worksheets 1, 2, and 3 are needed
The social security wage base for 2022 is $147,000.
What Does Form 941 Report?
If you pay wages subject to federal income tax withholding or social security and Medicare taxes, you must file Form 941 quarterly to report the following amount:
Wages you’ve paid
Tips your employees reported to you
Federal income tax you withheld
Both the employers and the employee share of social security and Medicare taxes
Additional Medicare tax withheld from employees
Current quarter’s adjustments to social security and Medicare taxes for fractions of cents, sick page, tips, and group-term life insurance
Qualified small business payroll tax credit for increasing research activities
Credit for qualified sick and family leave wages paid in 2022 for leave taken after March 31, 20202, and before October 1, 2021.
Credit for COBRA premium assistance payments
You should not file Form 941 to report backup withholding or income tax withholding on nonpayroll payments such as pensions, annuities, and gambling winnings.
Information Needed to Complete Form 941
The following information is needed to complete Form 941:
Basic business information, such as a business address and employer identification number, or EIN
Number of employees
Total wages you paid this quarter
Taxable Social Security and Medicare wages for the quarter
The total amount of federal income taxes, Social Security tax, and Medicare tax withheld from employees’ wages this quarter
Employment tax deposits that you’ve already made for the quarter
Meeting your quarterly filing requirements is simple with PayWow! PayWow files Form 941 on their client’s behalf. PayWow will ensure your quarterly payroll taxes are filed on time and completed accurately.