Most business owners are required to file Form 940 and Form 941 each quarter. Failing to submit the appropriate documentation can lead to significant fines, so if you are a business owner and have questions or concerns about tax preparation, accounting, payroll, bookkeeping, or other financial issues, it is important to contact an experienced team of financial managers who can advise you.
Employers must file Form 940 to report their yearly Federal Unemployment Tax Act (FUTA) tax payments. This tax helps fund federally mandated benefits, such as unemployment compensation. Although these taxes are not deducted from an employee’s wages, they must be paid by the employer on a quarterly basis and subsequently reported once a year. For 2016, the tax rate was 1.5 percent.
Completing Form 941
Employers must also file Form 941 to complete their quarterly federal tax return. To fully complete Form 941, employers must include specific information, including:
- The number of employees working during that quarter;
- The total amount of wages paid to employees;
- The amount of federal and state taxes withheld from employee paychecks;
- Adjustments for tips and sick pay;
- Calculations of amounts due; and
- Calculations of what has already been paid by the employer.
To provide this information an employer will need access to detailed payroll records as well as any documentation for taxable tips reported by employees. In addition to reporting these numbers, employers must also make payments for withheld amounts.
There are four deadlines for filing Form 941, including:
- April 30;
- July 31;
- October 31; and
- January 31.
A failure to submit these forms can lead to hefty fines, making it especially important for business owners to keep careful records and turn in all necessary documentation by the deadline.
How a Member of the CORE Financial Management Team Can Help
If you are an Oklahoma business owner, it is important to have a good grasp on the intricacies of which special taxes need to be paid and what tax forms should be completed and submitted. For advice or assistance with these types of issues, please contact the CORE financial management team to schedule a consultation with a dedicated employee who can explain your options. We can be reached at our Oklahoma City office at 405-720-1244 and at our Tulsa office at 918-477-7650. To reach someone at our Lawton office, please call us at 580-353-2376 to set up an initial meeting.