What's New for 2010:
COBRA premium assistance credit extended. The credit for COBRA premium assistance payments has been extended. It now applies to premiums paid for employees terminated before March 1, 2010, and to premiums paid for 15 months. See COBRA premium assistance credit on page 6.
Employers can choose to file Forms 941 instead of Form 944 for 2010. Beginning with tax year 2010, employers that would otherwise be required to file Form 944 can notify the IRS if they want to file quarterly Forms 941 instead of annual Form 944.
Social security wage base for 2010. Do not withhold social security tax after an employee reaches $106,800 in social security wages in 2010.
Form 941 2010 : Instructions and Helpful Information
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, unless the employer is required to file Form 944. Form 941 must be filed by the last day of the month that follows the end of the quarter.
Use Form 941 to report the following amounts.
Wages you have paid.
Tips your employees have received.
Federal income tax you withheld.
Both the employer's and the employee's share of social security and Medicare taxes.
Current quarter's adjustments to social security and Medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance.
Advance earned income tax credit (EIC) payments.
Credit for COBRA premium assistance payments.
Form 941 mailing address - Form 941 where to mail
For tax year 2010, if you are in "Connecticut, Delaware, New Jersey, New York, District of Columbia, North Carolina, Ohio, Georgia, Illinois, Pennsylvania, Rhode Island, Indiana, South Carolina, Kentucky, Maine, Tennessee, Vermont, Maryland, Massachusetts, Michigan, New Hampshire, Virginia, West Virginia, Wisconsin"
and you are sending a payment then file form 941 2010 to
Internal Revenue Service
P.O. Box 804522
Cincinnati, OH
45280-4522
and if you are NOT sending a payment then file form 941 2010 to
Department of the Treasury
Internal Revenue Service
Cincinnati, OH
45999-0005
For tax year 2010, if you are in "Alabama, Missouri, Alaska, Montana, Arizona, Nebraska, Arkansas, Nevada, California, New Mexico, Colorado, Florida, Oklahoma, Hawaii, Oregon, Idaho, Iowa, Texas, Kansas, Utah, Louisiana, Washington, Minnesota, Wyoming, Mississippi"
and you are sending a payment then file form 941 2010 to
Internal Revenue Service
P.O. Box 105083
Atlanta, GA
30348-5083
and if you are NOT sending a payment then file form 941 2010 to
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0005
COBRA premium assistance payments credit
Employers, use line 12a of form 941 to report the COBRA premium assistance payments you made. Only report the premium assistance payments you made for the assistance eligible individuals who have paid their reduced premiums. This amount should be 65% of the total COBRA premiums for assistance eligible individuals without regard to the reduction. Do not include any amounts paid to you by the COBRA assistance eligible individuals. For COBRA coverage provided under a self-funded plan, COBRA premium assistance payments are treated as having been made for each assistance eligible individual who pays 35% of the COBRA premium.
Reconciling Forms 941 and Form W-3
The IRS matches amounts reported on your four quarterly Forms 941 with Form W-2 amounts totaled on your yearly Form W-3, Transmittal of Wage and Tax Statements. If the amounts do not agree, you may be contacted by the IRS or the Social Security Administration (SSA). The following amounts are reconciled.
Federal income tax withholding.
Social security wages.
Social security tips.
Medicare wages and tips.
Advance earned income credit (EIC) payments.
Form 941 2010 Schedule B
File Schedule B (Form 941 2010) if you are a semiweekly schedule depositor or a monthly schedule depositor who accumulated a tax liability of $100,000 or more on any given day in the reporting period. See $100,000 Next-Day Deposit Rule in section 11 of Pub. 15 (Circular E) for important details. Do not complete Schedule B (Form 941) if you have a tax liability that is less than $2,500 (after you subtract any advance earned income credit (EIC) payment) during the quarter.
File Schedule B (Form 941) with your Form 941 or Form 941-SS every quarter when Form 941 or Form 941-SS is due.
Form 941 2010 Instructions
The complete instructions for form 941 can be found on the IRS website (www.irs.gov). In addition "Publication 15 - Circular E, Employer's Tax Guide" includes some good information about this payroll form. Using our Payroll Mate payroll software can save employers long tedious hours trying to prepare form 941.
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