Did you like how we did? Rate your experience!

Rated 4.5 out of 5 stars by our customers 561

Video instructions and help with filling out and completing Irs Schedule R Form 940

Instructions and Help about Irs Schedule R Form 940

Hi welcome to easy payroll guide my name is Karen Hutchinson and in this video I'm going to be showing you how to complete the IRS 941 form this is the employers quarterly federal tax return this form is due at the end of each quarter so for example quarter one ends on March 31st this would be due by April 30th so April 30th July 31st October 31st and January 31st are the due date for the IRS 941 form this form is going to detail all of the tax liabilities for that quarter this is how the IRS reconciles your w3 forms so you want to make sure that the information on this form is correct what I'm going to do is I'm going to give you a scenario of a small business who had three employees and I've taken the information from their paychecks and I've put them into an Excel spreadsheet and this is something that you could do as well for your record-keeping in order to help you to complete or just to check the 941 form so I have three employees and I've included their gross pay for each employee and then in the last column I've totaled the gross pay so my total four gross pay is twenty five thousand four hundred sixty five dollars and twenty seven cents I've also included in the spreadsheet the taxes that were withheld from each employees paycheck now this is just the employee portion of the taxes so I've included the federal withholding that I've included from each paycheck the employee Medicare portion the employer employee Social Security portion and I've included the state withholding the state withholding we're not going to need to use or the 941 but I wanted to point that out this is only federal taxes that are going to go on the 941 form so we are going to be using this portion not the state portion in the 941 form okay now this is the federal withholding so Medicare and Social Security for the entire quarter so this is what my employees have been paid for all of January all of February and all of March now I'm sorry we're doing fourth-quarter so all of October all of November all of December so it doesn't matter for three months these are the totals now along with withholding and paying taxes for your employee you also must pay an employer share of those taxes so when you major deposits you would have multiplied the Medicare portion by two and the Social Security portion by two because the employee is paying half but you're paying half as well so as you can see here in blue the Medicare portion for the employee and the employer are the same and the same for Social Security so these taxes were paid as well and will be noted on the 941 form so in this red box here I've kind of just summarized what we're going to be using for the nine forty one we're going to need the total gross pay that you've paid all three employees for all three months of the quarter you will also need to know the withholding total and the total Medicare and Social Security pain it will not be broken out by employee and employer on the nine forty one form but you may want to keep those records for yourself and then just the total that you've paid for the quarter and your deposits that you've made and then I also just recorded the deposits that were made for October November and December as well these three deposit should total the total paid right here okay so now let's take this and let's look at the 941 form along with it so this is the same spreadsheet and we're going to use this information here in the red box to help us to complete the 941 so when you begin the top of the 941 is pretty much just your personal business information and you want to make sure that you check the right quarter for which you're filing the 941 and then we're going to start with line number one line number one is just simply the number of employees who received compensation for the quarter so in this particular example I've paid three employees for the quarter so I'm going to write the number three line number two is the total wages tips and other compensation that you've paid and this is where you will come to your spreadsheet and as you can see I've paid a total of twenty five thousand four hundred sixty-five dollars and 27 cents and they there's a decimal there for you my excellently put the decimal in but you can use their decimal there okay so for number three it's the federal income tax withheld from wages tips and other compensation so this is the withholding tax that you've withheld from the employees paycheck so that is this number right here the three thousand one hundred fifty three dollars so that number we're going to put in here for the federal withholding okay there's no employer match for federal withholding that's strictly the amount withheld from the employees paycheck number four says that there are no wages tips and other compensation subject to Social Security or Medicare tax then you'll check this line and go to Line six but we have paid Social Security and Medicare so we are going to complete five A through five F technically so five a is the taxable Social Security wages and again this is not broken out by employer and employee so we're going to include all the wages here that we paid and this number is going to be the exact same as the total wages that you've paid because all of the wages that I've paid are subject to Social Security wages so the twenty-five thousand four hundred sixty-five.

If you believe that this page should be taken down, please follow our DMCA take down process here.