Lesson 11: Wage and Tax Reports

Who is required to complete a Multiple Worksite Report? A Most multilocation employers with a total of 10 or more employees combined in their secondary locations are required or requested to complete the MWR. B Most multilocation employers with a total of 75 or more employees combined in their secondary locations are required or requested to complete the MWR. C Most multilocation employers with a total of 100 or more employees combined in their secondary locations are required or requested to complete the MWR. D Most multilocation employers with a total of 250 or more employees combined in their secondary locations are required or requested to complete the MWR.

A Most multilocation employers with a total of 10 or more employees combined in their secondary locations are required or requested to complete the MWR.

What is reported on line 5e of the Form 941? A Total Social Security and Medicare taxes. B Total deposits for this quarter, including overpayment applied from a prior quarter. C Taxable social security wages. D Current quarter's fractions of cents.

A Total Social Security and Medicare taxes.

Under Part III line 6, what is reported on the Form 941-X? A Wages, tips, and other compensation. B Income tax withheld from wages, tips, and other compensation. C Taxable Medicare wages and tips. D Taxable social security wages.

A Wages, tips, and other compensation.

An "on-time" filing includes:

A filing that arrives after the due date if the envelope is properly addressed, contains sufficient postage, and is postmarked on or by the due date. A filing sent by an IRS-designated private delivery service on or before the due date.

Multiple Worksite Report (MWR)

A report developed by the Bureau of Labor Statistics to help it collect statistical information on U.S. businesses with multiple work sites.

2 The IRS Form _____ was created to report and reconcile the payments made to the IRS for the income tax and FICA taxes during a quarter period. A 940 B 941 C 943 D 944

B 941

Who must file a Schedule B? A A quarterly depositor. B A semiweekly depositor. C An annual depositor. D A monthly depositor.

B A semiweekly depositor.

When would a Schedule D NOT be filed? A A statutory merger. Incorrect B An acquisition that is not a statutory merger or consolidation and that does not qualify under the predecessor-successor rules. C A consolidation. D An acquisition for which the employer is using the alternate procedure under rev. Proc. 2004-53.

B An acquisition that is not a statutory merger or consolidation and that does not qualify under the predecessor-successor rules.

Which employer would complete the Form 941-PR? A An employer with employees in Guam. B An employer with employees in Puerto Rico. C An employer with employees in the Virgin Island. D An employer who has been delinquent on filing Form 941.

B An employer with employees in Puerto Rico.

What is listed on the Schedule B? A Employer's tax deposits. B Employer's tax liability for each day. C Employer's total payroll. D Employer's gross taxable wages only.

B Employer's tax liability for each day.

Which employers would use the Form 941-SS? A Employers with employees in Puerto Rico. B Employers with employees in Guam. C Employers with household employees. D Agricultural employers.

B Employers with employees in Guam.

If an error is discovered on a Form 941 in April of this year. When is the Form 941-X due? A April 30. B July 31. C October 31. D January 31.

B July 31.

What is reported on line 3 of the Form 941? A Taxable social security wages. B Total income tax withheld from wages, tips, and other compensation. C Total Social Security and Medicare taxes. D Total deposits for this quarter, including overpayment applied from a prior quarter.

B Total income tax withheld from wages, tips, and other compensation.

Which of the following is NOT reported on the Form 941? A Federal income tax. B Wages employers have paid. C Backup withholding. D Employee's share of FICA taxes.

C Backup withholding.

What is reported on Line 12 of the Form 941? A Total deposits for this quarter, including overpayment applied from a prior quarter. B Total taxes after adjustments. C Balance due. D Overpayment.

C Balance due.

When would Form 941 be due for the third quarter? A October 15. B October 10. C October 31. D September 30.

C October 31.

What is reported on line 5b column 1 of the Form 941? A Total income tax withheld from wages, tips, and other compensation. B Total Social Security and Medicare taxes. C Taxable Social Security tips. D Current quarter's fractions of cents.

C Taxable Social Security tips

What can employers use the Schedule D to do? A To reconcile Form 941 to the Schedule B. B To correct the Form 941 already submitted. C To explain certain discrepancies caused by an acquisition. D To correct an error on the Form Schedule B.

C To explain certain discrepancies caused by an acquisition.

What is reported on line 7 on the Form 941? A Total deposits for this quarter, including overpayment applied from a prior quarter. B Total taxes after adjustment. C Balance due. D Current quarter's fractions of cents.

D Current quarter's fractions of cents.

An employer paid wages on March 10. On which line under which month would the tax liability appear on the Schedule B? A Month 1 line 10. B Month 2 line 10. C Month 3 line 13 as the deposit would be made 3 days later. D Month 3 line 10.

D Month 3 line 10.

When is the Form 941-X required to be submitted? A Every quarter by the end of the month following the end of the quarter. B Quarterly by the last day of the last month of the quarter. C As requested by the IRS. D Whenever an error is found on a submitted Form 941.

D Whenever an error is found on a submitted Form 941.

Employers of farm employees

Employers of farm employees file Form 943 (Employer' Annual Tax Return for Agricultural Employees) instead of Form 941.

If taxes were underreported on Form 941:

Form 941-X is due by the due date of the return. That means: the employer must file Form 941-X by the due date for the 941 return that the error was discovered. So, for the four quarters, you have these due dates: [GA: can you create a table based on L11-01.png] You'd also send the amount of tax owed by this same due date.

Form 941- Employer's Quarterly Federal Tax Return

How much wages are paid, what taxes were withheld and deposited, and whether more tax or refund is due.

Form Schedule B

On Schedule B, employers list their tax liability for each day. You'd include: the income tax withheld from the employees' paychecks, and both employee and employer Medicare and Social Security taxes The IRS uses Schedule B (Form 941) to determine if the employer has deposited federal employment tax on time. It's filed quarterly, along with Form 941.

How often must you complete and submit Form 941?

Quarterly

Filing Schedule D

Schedule D was designed to be filed electronically along with Form 941. If necessary, you can also complete the form on paper and mail it in to the IRS.

Seasonal employers

Seasonal employers don't file Form 941 for quarters during which they paid no wages. Instead, they check the box on line 16 every quarter they file.

Form 944

Some small-business employers are eligible to file this form annually instead of filing Form 941 quarterly. It's due on January 31 and may be filed electronically.

Exception to Form 941: Some small-business employers

Some small-business employers file Form 944 (Annual Federal Tax Return) instead. (The IRS notifies these employers in February of each year.)

When to File Form 941-X

The due date for filing Form 941-X depends on when the error is discovered and whether the result was overreporting or underreporting taxes. Click to learn more:

Why File Form 941-X?

The employer must pay any additional amount owed by the time the Form 941-X is filed.

When is Form 941 due?

The last day of the last month that follows each quarter.

Forms 941-PR and 941-SS

These forms are filed in place of Form 941 by employers who pay wages in U.S. territories. Form 941-PR is used by employers for Puerto Rico. 941-SS is used by employers in American Samoa Guam The Commonwealth of Northern Mariana Islands The U.S. Virgin Islands

Form 943

This form is filed every calendar year and reports FICA taxes paid on wages for: agricultural workers domestic employees who work in a private home on a farm operated for profit

Form 945

This form reports nonpayroll payments, such as backup withholding from certain pensions, gambling winnings, and military retirement payments. It's due January 31. All income tax withholding reported on Forms 1099 or W-2G must be reported on this form.

As long as your mailing is postmarked on the due date and the envelope has the correct address and postage, your filing of Form 941 will be considered on time.

True!

The employer may choose to:

Use the adjustment process to get only the overpayment (not the interest on the money), Make an interest-free adjustment, or File a claim for refund or abatement (when the employer owes money to the IRS for other taxes for other Form 941 quarters and wants to apply the money owed toward that debt).

Who Should File Schedule D?

You don't need to file a Schedule D for every merger or acquisition. You'd file this form only if these changes produced discrepancies in terms of: Social Security wages and tips Medicare wages and tips Federal income tax withheld Advance earned income credit (EIC) payments

If the due date falls on a Saturday, Sunday, or legal holiday, you may file when?

You may file the return on the next business day.

Who Files Schedule B?

You'd have to file Schedule B if your employer is: a semi-weekly schedule depositor, or a monthly schedule depositor who accumulated a tax liability of $100,000 or more on any given day in the reporting schedule

Form 1040- Individual Tax Return

how much wages you earned, how much tax was paid, whether you owe more tax or will get a refund.

Form 945, Annual Return of Withheld Federal Income Tax

report for backup withholding and income tax withholding on non-payroll payments such as pensions, annuities, and gambling winnings

If taxes were overreported on Form 941:

the IRS allows for a certain period of limitation by which Form 941-X must be filed. This period is the later of: Within three years from the date Form 941 was filed; or Within two years from the date the employer paid the tax reported on Form 941.

Schedule D (Form 941)

to explain certain discrepancies (caused by acquisitions, statutory mergers, and consolidations) between Forms W-2, Wage and Tax Statement (Copy A), and Forms 941, Employer's QUARTERLY Federal Tax Return, for the totals of social security wages, Medicare wages and tips, social security tips, federal income tax withheld, and advance earned income credit (EIC) payments

Form 941-X

you can correct them by filing Form 941-X—The Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund. Think of it as the "X" crossing out the mistakes! You'd file a separate Form 941-X for each Form 941 that's being corrected. For example, if you found errors on Form 941 for the second and third quarters, you'd need to file two 941-X forms, one for each quarter. You should file Form 941-X separately from Form 941.

When a business is sold or transferred...

. . . both the old and new owner must file a Form 941 for the quarter of the transfer, reporting only the wages they paid.

When two businesses merge...

. . . the continuing firm files a return for the quarter; the other firm files a final return.

When a business changes form..

. . . the employer may need a new EIN, and must attach additional information.

When a business closes...

. . . the employer must file a final return.

Form 941 can be extended by how many days?

10 days if the employer made timely, in-full deposits for the quarter.