Social security wage base for 2008.   Do not withhold social security tax after an employee reaches $102,000 in social security wages. There is no limit on the amount of wages subject to Medicare tax.

Disregarded entities and qualified subchapter S subsidiaries (QSubs).   The IRS has published final regulations (Treasury Decision 9356) under which QSubs and eligible single-owner disregarded entities are treated as separate entities for employment tax purposes. The final regulations do not apply until January 1, 2009. For more information, see Disregarded entities and qualified subchapter S subsidiaries in the introduction to
Publication 15 (Circular E), Employer's Tax Guide.

Annual employment tax filing for small employers.   Certain small employers must file Form 944, Employer's ANNUAL Federal Tax Return, rather than Form 941, Employer's QUARTERLY Federal Tax Return, to report their employment taxes. The IRS will notify employers who must file Form 944 in February of each year. For more information, see the Instructions for Form 944.

Credit card payments.   Employers can pay the balance due shown on Form 941 by credit card. Do not use a credit card to make federal tax deposits. For more information on paying your taxes with a credit card, visit the IRS website at www.irs.gov and click on the electronic IRS link.

Correcting Form 941.   If you discover an error on a previously filed Form 941, make the correction using
Form 941 for the quarter in which you discovered the error and attach Form 941c, Supporting Statement to Correct Information. For example, in March 2008, you discover you underreported $10,000 in social security and Medicare wages on your fourth quarter 2007 Form 941. Correct the error by showing $1,530 (15.3% × $10,000) on line 7e of your 2008 first quarter Form 941 and attaching a completed Form 941c. Be sure to include the $1,530 in any required tax deposit.

Electronic filing and payment.   Now, more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. Whether you rely on a tax professional or handle your own taxes, IRS offers you convenient programs to make filing and paying easier. Spend less time and worry on taxes and more time running your business. Use e-file and the Electronic Federal Tax Payment System (EFTPS) to your benefit.

Where can you get telephone help?   You can call the IRS Business and Specialty Tax Line toll free at 1-800-829-4933, Monday through Friday from 7 a.m. to 10 p.m. local time (Alaska and Hawaii follow Pacific time) to order tax deposit coupons (Form 8109) and for answers to your questions about completing Form 941, tax deposit rules, or obtaining an employer identification number (EIN).

Photographs of missing children.   The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in instructions on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.