Form 941 (and Schedule B): Employer's Quarterly Federal Tax Return


Should I file Form 941, 944, or 943?

You'll typically file report your federal payroll tax liability on the Form 941 (quarterly) or the Form 944 (annual) federal tax return not both.

The Internal Revenue Service (IRS) will notify you which form you should file. If you're not sure which form you should file, contact the IRS.

Do I need to fill out Schedule B?

You are required to complete Schedule B (Form 941): Report of Tax Liability for Semiweekly Schedule Depositors and file it with Form 941 if either of the following apply:

  • You are a semiweekly schedule depositor.

  • Your payroll tax liability on any day in the quarter is $100,000 or more.

Consult with your professional tax advisor or contact the IRS to determine whether or not you need to file Schedule B with Form 941.

What is the Fraction of Cents adjustment?

If the difference between your total taxes (Line 10 on your form) and your total liability for the quarter is less than $1.00, QuickBooks adjusts the difference automatically and places the adjustment in the Fraction of Cents field, in accordance with IRS instructions (See Circular E).

Note: If your total taxes for the quarter are less than $2,500, QuickBooks does not complete monthly liability detail or a Schedule B, in accordance with IRS instructions. However, QuickBooks tracks the total internally and makes the Fraction of Cents adjustment automatically when the difference between that number and Line 10 is less than $1.00.

Can I skip the Form 941 interview?

You can skip the interview sheet if you prefer to edit the Form 941 directly. If you skip the interview sheet, remember to enter the following information directly onto your form:

  • Answer any of the questions on the form that apply to your situation.

  • Line 4: Check the box if no wages are subject to Social Security and/or Medicare tax.

  • Line 15: If your total taxes (line 10) are less than $2,500, check "Line 10 is less than $2,500" and proceed to Part 3. If your total taxes (line 10) are $2,500 or more, then check whether you are a monthly schedule depositor or a semiweekly schedule depositor. This tells QuickBooks whether it needs to prepare monthly liability detail or a Schedule B for you.

Last updated 12/17/2007. ©2008 Intuit Inc. All rights reserved.