Paying and Reporting Form 941 Quarterly T ax

Transcription

1 Paying and Reporting Form 941 Quarterly T ax This guide will walk you through: Documenting tax payments in WinStabs Making tax payments through EFTPS Filing 941 tax return with the IRS

2 Who must file Form 941? As an employer, federal law requires you to withhold certain taxes from employees' pay. Each time you pay wages, you must withhold or take out of employees' pay certain amounts for federal income, Social Security and Medicare tax. Any Local paying salary or lost time must file a 941-quarterly report going forward until the IRS informs you otherwise. LOCALS MUST FILE EVERY QUARTER, EVEN IF $0.00 IN TAX IS WITHHELD. What taxes are reported on Form 941? Taxes reported on Form 941 include federal income tax withheld for Rail and Bus Locals and Social Security FICA and FICA Medicare for Bus Locals only. When and where do you deposit 941 tax? Form 941 taxes are due monthly on the 15 th of each month for the prior month s tax liability. 941 taxes should be deposited monthly even though it s a quarterly tax. The preferred method is to pay through the EFTPS website ( Electronic deposit via the internet is the preferred method. Avoid paying your taxes with the 941-V voucher. The IRS will charge a 10% penalty if you do. When and where do you report Form 941 taxes? The due dates are as follows: 1 st quarter 941, due by April 30; 2 nd quarter 941, due by July 31; 3 rd quarter 941, due by October 31; 4 th Quarter 941, due by January 31. Forms are mailed to the IRS address listed on the form. We recommend using certified mail. AN IMPORTANT NOTE FOR RAIL LOCALS CT-1 Payers MUST CHECK THE EXCEPTION BOX in Part 1, Line 4, to avoid FICA penalties.

3 Step 1 Paying 941 Taxes in WinStabs and EFTPS for FICA Locals In WinStabs, click on Disbursements > Pay Tax Menu > Pay Current Year Tax > 941/944 [Fed-Fica]. Step 2 Enter a unique check number. A recommendation would be taxmonth/date (mm/dd) and then select the quarter the deposit applies to. For example, the month of January is in the first (1 st ) quarter. Assign Date will be the business day you schedule in EFTPS. Select the checks to be deposited. If you re depositing correctly, you should be clicking on Select All, then click on View Tax Voucher.

4 Step 3 Print out the tax voucher worksheet from WinStabs to assist with filing Form 941 on the EFTPS website. Keep it for your records. Do not send the worksheet to the IRS or to SMART TD. FICA-only filers (Bus Locals) will have amounts in the subcategories.

5 Step 4 Make sure you have printed the Form 941 tax voucher by clicking on View Tax Voucher, then close the voucher and click Make Tax Payment. Click OK, and the tax payment will be registered in the checkbook ledger. Remember that WinStabs does not communicate with EFTPS. You will now need to log into EFTPS and make the 941 quarterly deposit, which we will cover in the next steps.

6 Paying taxes in WinStabs and EFTPS for Rail Locals Step 1 In WinStabs, click on Disbursements > Pay Tax Menu > Pay Current Year Tax > 941/944 Tax [Fed-Fica]. Step 2 Enter a unique check number. A recommendation would be taxmonth/date (mm/dd), then select the quarter the deposit applies to. Select the check(s) to be deposited or choose Select All. Step 3 Click on View Tax Voucher.

7 Step 4 Print the worksheet from WinStabs to assist with filing the Local s 941 taxes with EFTPS and keep the worksheet for your records. Do not send the worksheet to the IRS or to SMART TD. Rail Locals will NOT have subcategories below!

8 Step 5 Make sure the Form 941 tax voucher has been printed in WinStabs by clicking on View Tax Voucher and printing, then close the voucher and click Make Tax Payment. A message will pop up. Click OK. The tax payment has been registered in the checkbook ledger. WinStabs does not communicate with EFTPS. You will now need to log into EFTPS and make the 941 quarterly deposit.

9 Making your 941 tax deposit with EFTPS o To pay taxes, you will need a valid login on the EFTPS and will use your EIN 1, PIN and password to log in. o Your EIN will be printed on your voucher. o Your four-digit PIN was mailed to you when you initially set your account up. o You created your password when you set up your account. If you are a new treasurer, this information can be used from your past treasurer, but you will need to update your profile on the EFTPS website ( Feel free to use the space below to record your EFTPS login information. Local # EIN PIN Password To access the EFTPS site, you can also use the links available in WinStabs. 1 Employer Identification Number or Tax ID.

10 Once the link page opens, click on the EFTPS icon. Step 1 At the EFTPS website, click on Make a Payment.

11 Step 2 Enter your login credentials, including the Local s EIN number, PIN & Password, then click on Login. NOTE: You will never need to use your Social Security number. Step 3 Select Most Common Forms or All forms in numeric order. Select 941 Employers Federal Tax, then select Next.

12 Step 4 Select Federal Tax Deposit, then click Next. Note: If you receive a letter from the IRS that shows the Local owes a balance, you would select Balance due on return or notice. Step 5 Enter your total payment amount, select quarter, tax year and settlement date, and click on Next.

13 Step 6 FICA Locals only: Enter data for subcategories. IMPORTANT: Rail Locals do not report subcategory data when depositing 941 tax!

14 Step 7 Confirm all information, then click Make Payment. Again, remember that Rail Locals will not have subcategories. Step 8 Once you ve received the message on the screen that your payment was successful, be sure to print it out and staple it with the voucher you printed in WinStabs to file with the Local s records.

15 Reporting Form 941 quarterly tax for Rail and FICA Locals Step 1 In WinStabs, click on Quarterly Reports/Annual Reports/Minutes > Quarterly Report Menu > 941 Federal Quarterly WorkSheet. Step 2 Select the quarter to display, then click on Open Form.

16 Step 3 To find out how many employees for the quarter for entry later, click on Disbursements > Wage & Reimbursed Expense Menu > Payroll Reports [FICA] Menu > Earnings Record Quarterly [FICA]. Then enter the quarter in the pop-up box. Make a note of the number, go back to the form, enter in Total Employees for the Quarter and then print out the worksheet.

17 Notes on the 941 FICA worksheet from WinStabs After printing out the worksheet to assist with filing 941 quarterly taxes, do not send the worksheet to the IRS or to SMART TD. Retain for it for the Local s records. Numbers needed for FICA Locals to complete Form 941 are highlighted in the sample worksheet below. The addresses to mail Form 941 to the IRS with and without money are at the bottom of the worksheet.

18 Notes on the Form 941 rail worksheet from WinStabs After printing out the worksheet to assist with filing 941 quarterly taxes, do not send the worksheet to the IRS or to SMART TD. Retain for it for the Local s records. Numbers needed for rail Locals to complete Form 941 are highlighted in the sample worksheet below.

19 Where and how do I get the 941-quarterly tax form? Go to and click on S&T Tools. Under the Forms and Documents heading, scroll down and click on More forms. Click on Form 941 for the proper year under the IRS/Tax Forms heading.

20 Form 941 FICA examples Form 941 tax form Form 941 tax worksheet Check the appropriate box of the quarter for which you re filing. Make sure to use proper year form. Enter the Local s EIN number. The Local s name should be entered as International Association of Sheet Metal, Air, Rail &Transportation XXXX TD along with the address, city, state and ZIP code. FICA Locals: DO NOT check off Box 3 IMPORTANT!!! If total tax liability (Line 12) is greater than $2,500, you were a monthly schedule depositor and will need these numbers for Part 2, Line 16. Complete Parts 1 and 2 only.

21 Form 941 rail example Form 941 tax form Form 941 worksheet Check the appropriate box of the quarter for which you re filing. Make sure to use proper year form. Enter the Local s EIN number. The Local s name should be entered as International Association of Sheet Metal, Air, Rail &Transportation XXXX TD along with the address, city, state and ZIP code.address, City, State and Zip code. RAIL Locals: MUST CHECK Box 4 IMPORTANT!!! If total tax liability (Line 12) is greater than $2,500, you were a monthly schedule depositor and will need these numbers for part 2. Complete Parts 1 and 2 only.

22 941 Tax Form, Page 2 Insert the name and EIN number of the Local. For Part 2, Line 16, check the first box if the tax liability is less than $2,500. If Part 1, Line 12 is greater than $2,500, check the second box and enter your tax liability for each quarter. The bottom left corner on the WinStabs worksheet will have the breakdown. Proceed to Part 5 and complete all fields. Print out, three copies of the completed form, then sign and date them. Mail the signed and dated original to the IRS via certified mail, mail another signed and dated copy to SMART TD, Country Club Blvd., Suite 340, North Olmsted, OH along with your monthly billing and then retain the last copy for the Local s records. Do not pay with the 941-V voucher as this will incur a 10% penalty from the IRS.