Form 941 Compliance

Why Should You Attend:

The quarterly Form 941 reports employee headcount, wages and tips, taxes withheld from employee pay and employer taxes, and tax liability dates that establish due dates for tax deposits. It is the basis for IRS determination of employer compliance with the requirement to withhold and deposit employee income tax and Social Security and Medicare taxes. The tax liability section and Schedule B provide the basis for IRS assessment of deposit penalties.

Form 941, and the related Form 941X used to correct a previously filed Form 941, present special compliance and reconciliation issues. Correction of prior return errors on a 941 can be challenging and subject to strict deadlines to avoid incurring penalties or interest charges.

It will cover correcting errors using Form 941-X including determining when to file, whether to file for an adjustment or a claim for refund, the certification and documentation requirements for recovering overpaid tax, and how to handle retroactive reclassification of workers from independent contractors to employees.

Learning Objectives:

As a result of this session, you should:

• Know how to prepare an error free Form 941
• Know when to use Form 941 or the related Forms 944, 943, and 945
• Understand what constitutes taxable wages and why the amounts are different for different taxes
• Know how to report tax amounts and how to make adjustments for rounding errors
• Know the filing due dates
• Understand the proper reporting of federal tax liability
• Know who should sign the Form 941 and what the signature represents
• Know when and how to reporting third party sick pay, group term life insurance and tips
• Understand the importance of reconciliation of Forms 941 with the Forms W2
• Know how to use Form 941-X to amend Form 941
• Understand how to make interest free adjustments and refund claims
• Know which certifications and employee statements are required for refunds
• Be aware of reporting adjustments due to worker reclassification

Areas Covered in the Webinar:

• When to use Form 941 – Related Forms 944, 943, and 945
• Form 941 fundamentals - A walk through Form 941
• Return Due Dates
• Who should sign the Form 941 and what the signature represents
• Reporting third party sick pay, group term life insurance and tips correctly
• How to reconcile the Forms 941 with the Forms W2
• Tax deposit and reporting requirements – How to determine your deposit schedule
• Using the 941X form to correct the Form 941 – A walk through Form941X
• Due dates and statute of limitations for corrections – Interest free adjustments and penalties
• Certifications and employee statements required for refunds
• Signing Form 941-X

Who Will Benefit:

• Payroll Supervisors and Personnel
• Accounts Payable Supervisors and Personnel
• Public Accountants
• Internal Auditors
• Tax Compliance Officers
• Enrolled Agents
• Officers and Managers with Tax Compliance Oversight
• Company / Business Owners
• Managers/ Supervisors
• Public Agency Managers
• Audit and Compliance Personnel / Risk Managers

Patrick A Haggerty
Owner, Patrick A. Haggerty, Tax and Accounting Services

Patrick A. Haggerty is a tax practitioner, author, and educator. His work experience includes non-profit organization management, banking, manufacturing accounting, and tax practice. He began teaching accounting at the college level in 1988. He is licensed as an Enrolled Agent by the U. S. Treasury to represent tax payers at all administrative levels of the IRS and is a Certified Management Accountant. He has written numerous articles and a monthly question and answer column for payroll publications. In addition, he regularly develops and presents webinars and presentations on a variety of topics including payroll tax issues, FLSA compliance, and information return reporting.

Topic Background:

Form 941 is the link between payroll records and the IRS tax records. It is one of the most important compliance areas in payroll. Form 941 must be prepared correctly and reconciled with the quarterly payroll records. It must also be reconciled annually with third party sick pay records and W-2 Forms. Proper administration of this vital form is critical for avoiding IRS notices and mitigating any penalties and interest that accompany them. The Schedule B is also a crucial form for many employers. Deposit liability dates must match the payroll records. These dates establish the deposit due dates and provide the basis for tax deposit compliance penalties.

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