Form 941 Definition

Term Definition
Form 941 is a payroll form reporting the total federal taxes that employers have withheld from employee compensation during the quarter.

Extended Definition
Employers are required to withhold federal taxes, Medicare tax, and Social Security tax from employees’ compensation and remit the same to the IRS. Employers report the total withheld payroll tax during the quarter in Form 941. The form is due four times a year. A calculation of the total taxes and deposits for the period is required. The difference is the amount owed, and due for payment. Employers can submit the form electronically.

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