File Form 941-SS (or Form 944-SS) for nonfarm workers and Form 943, for farmworkers. (U.S. Virgin Islands employers may be required to file Form 940 for the combined wages of nonfarm workers and farmworkers.)
The IRS sends each employer a form preaddressed with name, address, and EIN. If the form fails to reach you, request one in time to file. If you use a form that is not preaddressed, enter your name and EIN exactly as they appeared on previous returns.taxmap/pubs/p80-009.htm#en_us_publink1000105062
File Form 941-SS for the calendar quarter in which you first pay wages for nonfarm workers and for each quarter thereafter unless you are a seasonal employer or file a final return. Due dates for each quarter of the calendar year are as follows.
|Jan., Feb., Mar.||Apr. 30|
|Apr., May, June||July 31|
|July, Aug., Sept.||Oct. 31|
|Oct., Nov., Dec.||Jan. 31|
However, if you deposited all taxes when due for the quarter, you have 10 additional days from the due dates above to file the return. If the due date for filing your return falls on a Saturday, Sunday, or legal holiday, you may file on the next business day.
If you closed your business or stopped paying wages and do not have to file returns in the future, check the box on line 16 of your final Form 941-SS and show the date final wages were paid.taxmap/pubs/p80-009.htm#en_us_publink1000105063
If IRS notified you to file Form 944-SS, file your 2008 Form 944-SS by February 2, 2009, or by February 10, 2009, if you deposited all taxes when due.taxmap/pubs/p80-009.htm#en_us_publink1000105064
If you are a sole proprietor and file Form 941-SS (or Form 944-SS) for business employees, you may include taxes for household employees on your Form 941-SS (or Form 944-SS). Otherwise, report social security and Medicare taxes for household employees on Schedule H (Form 1040), Household Employment Taxes. See Publication 926, Household Employer's Tax Guide, for more information.taxmap/pubs/p80-009.htm#en_us_publink1000105065
Every employer of farmworkers must file a Form 943 for each calendar year beginning with the first year the employer pays $2,500 or more for farmwork or employs a farmworker who meets the $150 test described in section 6.
File a Form 943 each year for all taxable wages paid for farmwork. You may report household workers in a private home on a farm operated for profit on Form 943. Do not report wages for farmworkers on Form 941-SS or Form 944-SS.
Send Form 943 to the IRS by January 31 of the following year. Send it with payment of any taxes due that you are not required to deposit. If you deposited all taxes when due, you have 10 additional days to file.
If you receive a Form 943 for a year in which you are not required to file, write "NONE" on line 11 of the form, sign the form, and send it back to the IRS. If at that time you do not expect to meet either test in section 6 in the future, check the final return box above line 1. If you later become liable for any of the taxes, notify the IRS.taxmap/pubs/p80-009.htm#en_us_publink1000105066
For each whole or part month that a return is not filed when required (disregarding any extensions of the filing deadline), there is a failure-to-file penalty of 5% of the unpaid tax due with that return. The maximum penalty is generally 25% of the tax due. Also, for each whole or part month that the tax is paid late (disregarding any extensions of the payment deadline), there is a failure-to-pay penalty of 0.5% per month of the amount of tax. For individual filers only, the failure-to-pay penalty is reduced from 0.5% per month to 0.25% per month if an installment agreement is in effect. You must have filed your return on or before the due date of the return to qualify for the reduced penalty. The maximum amount of the failure-to-pay penalty is also 25% of the tax due. If both penalties apply in any month, the failure-to-file penalty is reduced by the amount of the failure-to-pay penalty. The penalties will not be charged if you have a reasonable cause for failing to file or pay. If you receive a penalty notice, you can provide an explanation of why you believe reasonable cause exists.taxmap/pubs/p80-009.htm#en_us_publink1000126025
There is a new process for correcting errors on a previously filed Form 941-SS, Form 944-SS, or Form 943, beginning with errors discovered in 2009. Corrections to a previously filed Form 941-SS, Form 944-SS, or Form 943 will be made on new Form 941-X, new Form 944-X, or new Form 943-X. For more information, see the Instructions for Form 941-X, Form 944-X, or Form 943-X.
Make current period adjustments for fractions of cents, sick pay, tips, and group-term life insurance on your Form 941-SS, Form 944-SS, or Form 943. See the Instructions for Form 941-SS, Form 944-SS, or Form 943, for information on how to report these adjustments.taxmap/pubs/p80-009.htm#en_us_publink1000125981
If you discover an error before January 1, 2009, on a previously filed Form 941-SS, Form 944-SS, or Form 943, make the correction using the instructions below.
Generally, you can correct errors on a previously filed return by making an adjustment on Form 941-SS, Form 944-SS, or Form 943 for the tax period (quarter or year) during which the error was discovered. For example, if you made an error reporting social security tax on your second quarter 2007 Form 941-SS and discovered the error during December 2008, correct the error by making an adjustment on your fourth quarter 2008 Form 941-SS. (If IRS notified you to file Form 944-SS, correct the error by making an adjustment on your 2008 Form 944-SS).
The adjustment increases or decreases your tax liability for the period in which it is reported (the quarter or year the error is discovered) and is, generally, interest free. The adjustments reported on Form 941-SS, Form 944-SS, or Form 943 may include any number of corrections for one or more previous quarters (or years), including both overpayments and underpayments.
You are required to provide background information and certifications supporting prior period adjustments. File Form 941c, Supporting Statement To Correct Information, with Form 941-SS, Form 944-SS, or Form 943, or attach an equivalent supporting statement.
Do not file Form 941c separately from Form 941-SS, Form 944-SS, or Form 943. Form 941c is not an amended return. It is used to provide necessary certifications and background information to support the adjustments made on Form 941-SS, Form 944-SS, or Form 943.
The Instructions for Form 941-SS, Form 944-SS, and Form 943 explain how to correct mistakes in reporting withheld social security and Medicare taxes, including the use of Form 941c. You may claim a refund for overwithheld social security and/or Medicare taxes on Form 843, Claim for Refund and Request for Abatement. Decreases in tax liability shown on Form 843 will be refunded with interest.taxmap/pubs/p80-009.htm#en_us_publink1000125982
Line 7g of Form 941-SS (line 6e of Form 944-SS) is reserved for employers with special circumstances. Use this line only if the IRS sent you a notice instructing you to do so. taxmap/pubs/p80-009.htm#en_us_publink1000125983
If you discover an error on a previously filed Form 941-SS, Form 944-SS, or Form 943 after December 31, 2008, make the correction using new Form 941-X, 944-X, or Form 943-X. Also use these new forms to correct any errors not previously reported. (Do not use Form 941c.) File a separate Form 941-X, 944-X, or Form 943-X for each prior period you are correcting. File Form 941-X, Form 944-X, or Form 943-X separately. Do not attach Form 941-X, Form 944-X, or Form 943-X to your current period Form 941-SS, Form 944-SS, or Form 943.taxmap/pubs/p80-009.htm#en_us_publink1000125984
Generally, correction of an underpayment will not be subject to interest if:
- You file Form 941-X, Form 944-X, or Form 943-X on time;
- You pay the balance due by the time you file Form 941-X, Form 944-X, or Form 943-X;
- You enter the date the error was discovered; and
- You provide in detail the grounds and facts relied on to support the correction.
Therefore, when you discover that you underreported and underpaid tax on a previously filed return, you must file Form 941-X, Form 944-X, or Form 943-X no later than the due date of the return for the period during which you discovered the error and pay any amount due by the time you file to qualify for interest-free treatment of the correction. For example, you discover on June 15, 2009, that you underreported $10,000 of social security and Medicare wages on your 2008 first quarter Form 941-SS. You owe $1,530 on the 2008 first quarter Form 941-SS. To qualify for an interest-free adjustment, you must file Form 941-X by July 31, 2009 and pay the $1,530 owed by the time Form 941-X is filed. You must pay by using EFTPS or by sending a check with the form. For Forms 941-X, 944-X, and Form 943-X, credit card payments are also accepted.taxmap/pubs/p80-009.htm#en_us_publink1000126037
A correction will not
be eligible for interest-free treatment if:
- The amount underreported relates to an issue that was raised in an IRS examination of a prior return,
- You knowingly underreported your employment tax liability,
- You received a notice and demand for payment after assessment, or
- You received an IRS Notice of Determination of Worker Classification.
Employers have a choice when correcting overpayments. You can choose to make an adjustment and have the overpayment amount applied as a credit to the quarter (or year for annual return filers) in which Form 941-X, Form 944-X, or Form 943-X is filed, or you can choose to claim a refund of the overpayment. See the chart on the back of Form 941-X, Form 944-X, or Form 943-X for help in choosing whether to file an adjusted employment tax return or to file claim for refund.
Employers will no longer use Form 843, Claim for Refund or Request for Abatement, to request a refund or abatement of overreported social security or Medicare taxes. Instead, request your refund or abatement of taxes on Form 941-X, Form 944-X, or Form 943-X. However, use Form 843 when requesting a refund or abatement of assessed interest or penalties.
For additional information about the new process for correcting employment taxes, get the Instructions for Form 941-X, Form 944-X, or Form 943-X. See How To Get Forms and Publications
on page 4. See also Treasury Decision 9405. You can find Treasury Decision 9405 on page 293 of Internal Revenue Bulletin 2008-32 at www.irs.gov/pub/irs-irbs/irb08-32.pdf
. You can also visit the IRS website at www.irs.gov
and enter "Correcting Employment Taxes" in the search box.
If you withhold no social security tax, Medicare tax, or less than the correct amount of either tax from an employee's wages, you can make it up by withholding from later pay to that employee. However, you are responsible for the underpayment. Any reimbursement from the employee's own funds for amounts not collected must be agreed to by you and the employee. See Section 5 for special rules for tax on tips.taxmap/pubs/p80-009.htm#en_us_publink1000126028
If you withhold more than the correct amount of social security tax or Medicare tax from wages paid, and discover the error before filing Form 941-SS, Form 944-SS, or Form 943, repay or reimburse the employee the amount overwithheld before filing the return.taxmap/pubs/p80-009.htm#en_us_publink1000126411
An employer reimburses an employee by applying the overwithheld amount against taxes to be withheld on future wages.
Be sure to keep in your records the employee's written receipt showing the date and amount of the repayment or record of reimbursement. You must report and pay any taxes overwithheld when you file the return for the return period in which the overcollection was made if you have not repaid or reimbursed the employee.
For an overcollection reported on a previously filed form 941-SS, Form 944-SS, or Form 943, an employer is required to repay or reimburse its employees prior to filing an adjusted employment tax return. Employers filing claims for refund of overpaid social security and Medicare taxes may either repay or reimburse the employees their share of FICA tax first or get employee consents to file the claim for the excess tax on their behalf. Employers must retain the written receipt of the employee showing the date and amount of the repayment, record of reimbursement, or the written consent of the employee.