Question

check the procedure for filing payroll forms like 940 and 941 etc. and discuss these here.

Answer 1

Use Form 941 to Take Coronavirus Tax Credit Deferrals

The IRS is allowing businesses to defer payment of certain employment taxes as part of two new tax credits during the coronavirus emergency. Your business can take the tax credits early by deferring your share (as an employer) of Social Security taxes. The tax credits are:

An Employee Retention Tax Credit to encourage businesses to keep paying employees if the business has been affected by COVID-19.

Sick Leave and Family Leave Tax Credits to help employers that must give paid sick leave and family leave to employees who can't work due to COVID-19, for themselves and others.

You can report the deferral of employment taxes using Form 941. This form will be changed for the second quarter of 2020 for this purpose.

For more information on these tax credits and how to defer them see this IRS article on Deferral FAQ article from the IRS.1

What Is Form 941?

Form 941 is used by employers to report quarterly tax withholding amounts for estimated income tax payments, as well as employer payments, and FICA taxes (Social Security and Medicare taxes).

The taxes and withholding you must report on this form include:

• Withholding federal income taxes from employee paychecks, based on the information from their W-4 form.
• Withholding amounts due, based on your employees' Medicare and Social Security wages.
• Calculating the employer portion of FICA taxes.2

In addition, the form is used to:

• Adjust amounts due,
• Calculate a total payroll tax liability,
• And subtracting amounts already paid to get a final amount of overpayment or underpayment.

When is Form 941 Due?

IRS Form 941 is an important quarterly payroll tax form for every employer, and it's due four times each year:

• March 31 for Quarter 1: January, February March
• June 30 for Quarter 2: April, May, June
• September 30 for Quarter 3: July, August, September
• December 31 for Quarter 4: October, November, December.3

When due dates land on a holiday or a weekend day, the adjusted due date will be the next business day. For example, if the July 31 due date is a Saturday for that year, the due date for that payment would be Monday, August 2.

If you have made your payroll tax deposits for the quarter completely and on time, you have 10 more days after the due date above to file form 941 for the quarter. Here are the filing dates if you meet the criteria for the 10-day extension:

• For the first quarter, ending March 30, you must submit by May 10.
• For the second quarter, ending June 30, you must submit by August 10.
• For the third quarter, ending September 30, you must submit by November 10.
• For the fourth quarter, ending December 31, you must submit by February 10.