Preparing Your Tax Return(s) and Information Returns

Employment Taxes

Form 941, Form 941TeleFile, Employers Quarterly Tax Return

Each quarter, all employers who pay wages subject to income tax withholding (including withholding on sick pay and supplemental unemployment benefits) or social security and Medicare taxes must file Form 941, Employer's Quarterly Federal Tax Return.

Filing Form 941

Changes To Note

Employment Tax Rates and Wage Bases for 2001

1. Social Security Tax:
   a) Tax Rate-6.2% each for employers and employees
   b) Wage Base-$80,400
2. Medicare Tax:
   a) Tax Rate-1.45% each for employers and employees
   b) All wages subject to Medicare tax
3. Federal Unemployment (FUTA) Tax:
   a) Tax Rate-6.2% before state credits (employers only)
   b) Wage Base-$7,000

Table 3. Social Security and Medicare Tax Rates (For 3 prior years)

Hints on filing. Do not report more than one calendar quarter on a return.  Use the preaddressed form mailed to you. If you do not have the form, get one from any IRS office in time to file the return when due. If you use a form that is not preaddressed, show your name and EIN on it. Be sure they are exactly as they appeared on earlier returns. See the Instructions for Form 941 for suggestions for preparing the form.

Reconciling Forms W-2, W-3, and 941

Where to file

Important References                                                      

Publication 15 Circular E, Employer’s Tax Guide
Form 941 Employer’s Quarterly Federal Tax Return
Instructions for Form 941