Form 941

Form 941 (Employer’s Quarterly Federal Tax Return) is an essential tax document used by employers to report federal income tax, Social Security, and Medicare taxes withheld from employee wages. Employers use this form to reconcile the total payroll taxes withheld and the amounts deposited with the IRS throughout each quarter.

Things to know

• Most businesses with W-2 employees must file Form 941 every quarter, even if they have no taxes to report for that period.
• 7shifts Payroll utilizes your processed payroll data to help capture the accurate wage and tax information required for these quarterly filings.
• Form 941 is a reporting document only; it does not replace your requirement to make regular, timely payroll tax deposits.

When to file Form 941

Form 941 is due by the last day of the month following the end of each calendar quarter.

• Quarter 1 (January–March): Due April 30.
• Quarter 2 (April–June): Due July 31.
• Quarter 3 (July–September): Due October 31.
• Quarter 4 (October–December): Due January 31.

Information reported on Form 941

This form provides a comprehensive summary of your quarterly payroll activity and total tax liability.

• Total wages, tips, and other taxable compensation paid to your employees.
• Federal income tax withheld from employee paychecks.
• Both the employer and employee shares of Social Security and Medicare (FICA) taxes.
• Adjustments for fractions of cents, sick pay, or tips.
• Total tax deposits already made during the quarter.

Common restaurant considerations

The unique nature of restaurant payroll, particularly regarding tips and seasonal staffing, impacts how you review your Form 941.

Tip reporting

All cash tips reported by employees and processed through 7shifts Payroll must be included in the taxable wages on Form 941. These are subject to both income tax withholding and FICA taxes.

Balances due

A balance due on Form 941 usually indicates that your total tax deposits for the quarter did not match your total reported liability. This can be caused by timing differences in payroll cycles or missed deposits.

Form 941 vs. Form 940

Form 941 is filed quarterly for income and FICA taxes. In contrast, Federal Unemployment Tax (FUTA) is reported annually using Form 940. FUTA is an employer-only tax and is never withheld from employee wages.

7shifts Payroll and Form 941

• Review your 7shifts payroll reports to verify that total wages match the figures on your Form 941.
• Confirm your federal tax deposit schedule (monthly or semiweekly) to ensure deposits match the liability reported for each period.
• If you receive an IRS notice regarding a Form 941 discrepancy, provide a copy to Support for a detailed review of your processed payroll data.