Question

Cruz Company has gathered the information needed to complete its Form 941 for the quarter ended September 30, 2019.

Using the information presented below, complete Part 1 of Form 941, rounding to the nearest cent.

• # of employees for pay period that included September 12-14 employees
• Wages paid third quarter-$79,750.17
• Federal income tax withheld in the third quarter-$9,570.00
• Taxable social security and Medicare wages-$79,750.17
• Total tax deposits for the quarter-$21,771.83

Hint: Line 7 instructions. Fill in Form 941 through line 6, then fill in Part 2, line 16. Take that information and fill in line 13. Lines 12 and 13 must equal. If the amounts are not the same, correct by entering amount to make equal on line 7. Line 7 differences are caused by how calculations are made on Form 941 and the amounts withheld from employee's earning plus the employer's payroll tax amounts each pay.

Form941 for 20--: (Rev. January 2018) Employer's QUARTERLY Federal Tax Return Department of the Treasury — Internal Revenue Service OMB No. 1545-0029 Employer identification number (EIN) 0 0 – 0 0 0 6 5 0 9 Name (not your trade name) CARLOS CRUZ Trade name (if any) CRUZ COMPANY Address 901 KEYSTONE Number Street Suite or room number SACRAMENTO CA 95916 City State ZIP code Foreign country name   Foreign province/county Foreign postal code Report for this Quarter of 20-- (Select one.) July, August, September Go to www.irs.gov/Form941 for instructions and the latest information. Read the separate instructions before you complete Form 941. Type or print within the boxes. Part 1:   Answer these questions for this quarter.   1 Number of employees who received wages, tips, or other compensation for the pay period including Mar. 12 (Quarter 1), June 12 (Quarter 2), Sept. 12 (Quarter 3), or Dec. 12 (Quarter 4) 1   2 Wages, tips, and other compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2   3 Federal income tax withheld from wages, tips, and other compensation . . . . . . . . . . . . . . . . . . . . . . . . . 3   4 If no wages, tips, and other compensation are subject to social security or Medicare tax ☐ Check and go to line 6.   Column 1   Column 2 5a Taxable social security wages . . . . . x 0.124 = 5b Taxable social security tips . . . . . . . . x 0.124 = 5c Taxable Medicare wages & tips . . . . . x 0.029 = 5d Taxable wages & tips subject to Additional Medicare Tax withholding x 0.009 =   5e Add Column 2 from lines 5a, 5b, 5c, and 5d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5e   5f Section 3121(q) Notice and Demand—Tax due on unreported tips (see instructions) . . . . . . . . . . . . . . . 5f   6 Total taxes before adjustments. Add lines 3, 5e, and 5f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6   7 Current quarter's adjustment for fractions of cents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7   8 Current quarter's adjustment for sick pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8   9 Current quarter's adjustments for tips and group-term life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . 9   10 Total taxes after adjustments. Combine lines 6 through 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10   11 Qualified small business payroll tax credit for increasing research activities. Attach Form 8974 . . 11   12 Total taxes after adjustments and credits. Subtract line 11 from line 10. . 12   13 Total deposits for this quarter, including overpayment applied from a prior quarter and overpayments applied from Form 941-X, 941-X (PR), 944-X, or 944-X (SP) filed in the current quarter . . 13   14 Balance due. If line 12 is more than line 13, enter the difference and see instructions . . . . . . . . . . . . . . . . . . . . 14   15 Overpayment. If line 13 is more than line 12, enter the difference   Check one: ☐ Apply to next return.   ☐ Send a refund.   ▶ You MUST complete both pages of Form 941 and SIGN it. Next ➡ For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher. Cat. No. 17001Z Form 941 (Rev. 1-2018)

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