Descriptions and Sources of Form 941 part 1 Box Information

IRS form 941 is a Federal Form filed by the employer at the end of each quarter to report federal tax withholdings from employees' paychecks. These withholdings include social security and Medicare taxes and other withholdings that may be taken from wages, tips, supplemental unemployment compensation benefits and third-party payments of sick pay.

Below are each 941 part 1 box's description

Box	Description	Source	Note:
1	Number of Employees Who Received Wages, Tips, or Other Compensation This Quarter	Employees who have been paid through Paychecks
2	Wages, Tips, and Other Compensation	Total wages of employees
3	Income Tax Withheld From Wages, Tips, and Other Compensation	Federal Income tax withheld from employees
4	If No Wages, Tips, and Other Compensation are Subject to Social Security or Medicare Tax	If this question does not apply to you, leave the box blank.
5a	Taxable social security wages	The total wages, sick pay, and fringe benefits subject to social security taxes you paid to your employees during the quarter.
5b	Taxable social security tips	All tips your employees reported to you during the quarter
5c	Taxable Medicare wages & tips	all wages, tips, sick pay, and taxable fringe benefits that are subject to Medicare tax
5d	Total social security and Medicare taxes	Social security wages tax (line 5a), social security tips tax (line 5b), and Medicare wages and tips tax (line 5c)
5e	Section 3121(q) Notice and Demand—Tax on Unreported Tips	Tax due from your Section 3121(q) Notice and Demand on line 5e	The IRS issues a Section 3121(q) Notice and Demand to advise an employer of the amount of tips received by employees who failed to report or underreported tips to the employer.
6	Total Taxes Before Adjustments	The total federal income tax withheld from wages, tips, and other	Any tax due under section 3121(q) as entered on line 5e. Enter the result on line 6
7	Current quarter's adjustment for fractions of cents.	Adjustments for fractions of cents (due to rounding)
8	Current quarter's adjustment for sick pay.	Adjustment for the employee share of social security and Medicare taxes that were withheld and deposited by your third-party sick pay payer with regard to sick pay paid by the third-party	These wages should be included on lines 5a and 5c
9	Current quarter's adjustments for tips and group-term life insurance.	Adjustments for Any uncollected employee share of social security and Medicare taxes on tips, and The uncollected employee share of social security and Medicare taxes on group-term life insurance premiums paid for former employees.
10	Total Taxes After Adjustments	Total of the amounts from  lines 6–9
11	Total Deposits for This quarter, Including overpayment applied from prior quarter and overpayment applied from Form 941-X or Form944-X filed in the current quarter	Deposits for this quarter, including any overpayment from a prior quarter.
12a	COBRA Premium Assistance Payments	COBRA premiums for assistance eligible individuals
12b	Number of Individuals Provided COBRA Premium Assistance on Line 12a	The total number of assistance eligible individuals provided COBRA premium assistance for the amount entered on line 12a
13	Total Deposits and Credits	Add lines 11 and 12a.
14	Balance Due	If line 10 is more than line 13, enter the difference on line 14	You do not have to pay if line 14 is under $1. Generally, you should have a balance due only if your total taxes (line 10) for the current quarter or preceding quarter are less than $2,500, and you did not incur a $100,000 next-day deposit obligation
15	Overpayment	If line 13 is more than line 10, enter the difference on line 15	Never make an entry on both lines 14 and 15. If you deposited more than the correct amount for the quarter, you can choose to have the IRS either refund the overpayment or apply it to your next return. Check only one box on line 15. If you do not check either box or if you check both boxes, IRS generally will apply the overpayment to your account. The overpayment may be applied to any past due tax account that is shown in records under your EIN.

 

 

For more current information, please see the official website of the Internal Revenue Service (IRS)

http://www.irs.gov/instructions/i941/ch02.html

 

 

Disclaimer: To ensure compliance with requirements imposed by the IRS under Circular 230, NetSuite informs you that any U.S. federal tax advice contained in this communication (including any attachments), unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any matters addressed herein. 

These materials do not constitute tax, legal, or accounting advice and neither NetSuite, nor its agents, employees, or representatives are in the business of offering such advice.  Please consult your tax, legal, and accounting advisors for tax, legal, or accounting advice.