The IRS deadline, to file form 941 (Employer’s Quarterly Federal Tax Return), is soon approaching. Quarter Four Form 941, which includes payroll periods from October, September and December, is due on January 31, 2010.
Form 941 is one of the many payroll forms that a business owner or an employer needs to prepare to be in compliance with government regulations. This payroll form is used by employers to report wages paid, tips employees have received, federal income tax withheld, both the employer and employee share of social security and Medicare taxes, the current quarter’s adjustments to social security and Medicare tax for fraction of cents, sick pay, tips group-term life insurance, advanced earned income tax credit (EIC) payments and credit for COBRA premium assistance payments. Credit for COBRA premium assistance payments is new to form 941 this quarter. This box has been added to accommodate COBRA premium benefits set forth in the economic stimulus package.
Using payroll software can save a business owner vast amounts of time and energy. An automated payroll solution can keep a business owner from possible mistakes during tedious calculations.
