skip navigation

Search Help
Navigation Help

Topic Index
ABCDEFGHI
JKLMNOPQR
STUVWXYZ#

FAQs
Forms
Publications
Tax Topics

Comments
About Tax Map

IRS.gov Website

Frequently Asked Tax Questions

Small Business, Self-Employed, Other Business - Forms 941, 940, Employment Taxes

  1. We are about to hire employees and need to know how much tax to take out and where to send this money?
  2. We hired a nanny to look after our baby while we work. How do we pay her social security taxes and properly report her income?

Rev. date: 08/04/2012

We are about to hire employees and need to know how much tax to take out and where to send this money?

You will need:
Generally, employers are required to quarterly file Form 941 (PDF), Employer's Quarterly Federal Tax Return, and annually file Form 940 (PDF), Employer's Annual Federal Unemployment (FUTA) Tax Return.  Employers must annually file a Form W-2 (PDF), Wage and Tax Statement, for each employee with Form W-3 (PDF), Transmittal of Wage and Tax Statements, and furnish copies of Form W-2 to the employee.  Some small employers (those whose annual liability for social security, Medicare, and withheld Federal income taxes is $1,000 or less) may annually file Form 944 (PDF), Employer's Annual Federal Tax Return, instead of Forms 941, if the IRS has notified them to file Form 944 instead of Forms 941.  Employers who are notified to file Form 944 must file Form 944 unless they timely contact the IRS to request to file Forms 941 instead and receive written notification that their filing requirement has changed.  New employers are also eligible to file Form 944, if they will meet the eligibility requirements.  If new employers qualify to file Form 944, they must check the box on line 14 of Form SS-4 (PDF), Application for Employer Identification Number, to indicate that they want to file Form 944 instead of Forms 941.  If new employers do not check this box, they must file Forms 941.
The Employment Tax e-file System 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.

Rev. date: 08/04/2012

We hired a nanny to look after our baby while we work. How do we pay her social security taxes and properly report her income?

A nanny is considered a household employee, and you are a household employer: