As an employer, you’ll withhold certain taxes from your employees’ pay – federal income tax, social security tax, and Medicare tax. You’re also responsible for the employer’s portion of social security and Medicare taxes. You’ll report your tax liability by filing Form 941, Employer’s Quarterly Federal Tax Return, each quarter.
Use Form 941 to report:
- wages you’ve paid,
- tips your employees have reported to you,
- federal income tax you’ve withheld,
- employer and employee portions of social security and Medicare taxes,
- Additional Medicare Tax withheld,
- the current quarter’s adjustments to social security and Medicare taxes, and
- qualified small business payroll tax credit for increasing your research activities.