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Forms 940, 941 and 944 Employment Taxes

Question: We are about to hire employees and need to know how much federal income tax to withhold and where to send this money along with other employment taxes?

Answer:

You will need to:

  • Secure a completed Form W-4 (.pdf), Employee's Withholding Allowance Certificate, from each employee to know how much federal income tax to withhold from your employee's wages.
  • Use Publication 15, (Circular E), Employer's Tax Guide, and Publication 15-A (.pdf), Employer's Supplemental Tax Guide, to determine the amount of withholding and for directions on depositing the withheld amounts and other employment taxes. Also, refer to Form 941 (.pdf), Employer’s QUARTERLY Federal Tax Return, and the Instructions for Form 941, or Form 944 (.pdf), Employer's ANNUAL Federal Tax Return, and the Instructions for Form 944.

Generally, employers are required to file Forms 941 quarterly. However, some small employers (those whose annual liability for Social Security, Medicare, and withheld federal income taxes is $1,000 or less) may file Form 944 (.pdf), Employer's ANNUAL Federal Tax Return, annually instead of Forms 941. Employers are required to file Form 940 (.pdf), Employer's Annual Federal Unemployment (FUTA) Tax Return, annually. See Topic 759 for more information about Form 940. Employers must also file a Form W-2 (.pdf), Wage and Tax Statement, annually for each employee along with a Form W-3 (.pdf), Transmittal of Wage and Tax Statements, and furnish a copy of the Form W-2 to the employee.  

Monthly or semiweekly deposits may be required for taxes reported on Form 941 (or Form 944), and quarterly deposits may be required for taxes reported on Form 940. Employers should consult each form’s instructions or Publication 15 to determine when to make deposits.

The Employment Tax e-file System page offers an improved way to file Forms 940, 941 and 944 electronically. Prospective participants must first complete and submit an IRS e-file application. You can complete the IRS e-file application online after registering for e-services.

Additional Information:


Category: Small Business, Self-Employed, Other Business
Subcategory: Forms 940, 941 and 944 Employment Taxes

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The OMB number for this study is 1545-1432.
If you have any comments regarding this study, please write to:
IRS, Tax Products Coordinating Committee
SE:W:CAR:MP:T:T:SP
1111 Constitution Avenue NW
Washington, DC 20224