The next quarterly payroll tax returns are due on November 1, 2021. IRS Forms 940, 941, 943, 944 or 945 are used to report employment tax information.
E-filing is a good way to file for several reasons:
It's accurate and saves time by performing step-by-step calculations and auto-populating forms and schedules.
The IRS acknowledges receipt of e-filed returns within 24 hours, giving reassurance they didn't get lost in the mail or misplaced.
Electronically filed returns reduce processing time and have fewer errors, reducing the odds that you'll get an IRS notice.
E-file users receive missing information alerts.
Schedules for depositing and reporting taxes are not the same.
Reporting Due Dates
Employers must report wages, tips and other compensation they paid to employees by filing the required form(s) with the IRS. They also have to report the taxes they deposit - the employer federal income tax withheld, and both the employer and employee social security and Medicare taxes.
Form 941, Employer’s QUARTERLY Federal Tax Return due dates are:
April 30
July 31
October 31
January 31 (for fourth quarter of prior year)
If you deposited your taxes on time, when they were due, you have 10 additional calendar days to file the return.
Deposit Due Dates
There are two deposit schedules, monthly and semi-weekly. Employers must determine which of the two schedules they are required to use before the beginning of the calendar year. Read Publication 15 for Forms 941, 944 and 945, or Publication 51 for Form 943, to determine your payment schedule.
If you fail to make a deposit on time, you may be subject to a failure-to-deposit penalty of up to 15%.
While the IRS recommends that everyone file their employment tax returns electronically, employers must use electronic funds transfer (EFTPS) to make their federal tax deposits.
Deposits for FUTA Tax (Form 940, Employer's Annual Federal Unemployment Tax Return)
FUTA tax must be deposited by the last day of the first month that follows the end of the quarter. If the due date for making the deposit falls on Saturday, Sunday, or a legal holiday, you can make the deposit the next business day.
If your liability for the fourth quarter (plus any undeposited amount from any earlier quarter) is over $500, deposit the entire amount by the due date of Form 940 (January 31). If it is $500 or less, you can make a deposit, pay the tax with a credit or debit card, or pay the tax with your Form 940 by January 31.
There are two deposit schedules, monthly and semi-weekly, and which one is used depends on the total tax liability reported on Form 941 - special rules for Forms 944 and 945.
COVID-related Employer Tax Credits
Payment of deferred employer share of social security tax from 2020.
If the employer deferred paying the employer share of social security tax in 2020, they pay 50% of the employer share of social security tax by January 3, 2022 and the remainder by January 3, 2023. Any payments or deposits made before January 3, 2022 are first applied against the first 50% of the deferred employer share of social security tax, and then applied against the remainder of your deferred payments.
Payment of deferred employee share of social security tax from 2020.
If the employer deferred withholding and payment of the employee share of social security tax or the railroad retirement tax equivalent on certain employee wages and compensation between September 1, 2020, and December 31, 2020, they withhold and pay those taxes no later than January 3, 2022.
Notice 2021-24 has guidance on the ability to reduce deposits and request advances for the credits for periods of leave through September 30, 2021.
The Employee Retention Credit was extended and amended.
The Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees. The modified and extended credit is available for qualified wages paid before January 1, 2022. The rules for the Employee Retention Credit for the second quarter of 2021 and the third and fourth quarters of 2021 are substantially similar.
The CARES Act allowed employers to defer the deposit and payment of the employer share of social security taxes. The deferred amount is reported on their 2020 employment tax return. The deferred amount of the employer share of social security tax is only available for deposits due on or after March 27, 2020, and before January 1, 2021, as well as deposits and payments due after January 1, 2021, required for wages paid on or after March 27, 2020, and before January 1, 2021.
One-half of the deferred amount of the employer share of social security tax is due by December 31, 2021, and the remainder is due by December 31, 2022.
Any payments or deposits made before December 31, 2021 are applied first against the payment due on December 31, 2021, and then against the payment due on December 31, 2022. Because both December 31, 2021, and December 31, 2022, are non-business days, payments made on the next business day will be considered oh-time.
The credit for qualified sick and family leave wages was extended and amended.
The employer tax credits for qualified sick and family leave wages gives all American businesses with less than 500 employees funds to provide employees with paid leave, either for the employee's own health or to care for their family members. The American Rescue Plan of 2021 further amended and extended both the tax credits and the availability of advance payments of the tax credits for paid sick and family leave.
Additional Resources:
Visit IRS.gov/ETD and see the Instructions for Form 941 or the Instructions for Form 944, available at IRS.gov/Form941 and IRS.gov/Form944, for more information about the deferral of employment tax deposits.
Correction to the Instructions for Form 941 (Rev. June 2021)
Depositing and Reporting Employment Taxes
Deferral of employment tax deposits and payments through December 31, 2020
Coronavirus Tax Relief for Businesses and Tax-Exempt Entities