Instructions for Form 941 (Revised January 2000) Employer's Quarterly Federal Tax Return Section references are to the Internal Revenue Code unless otherwise noted. Department of the Treasury Internal Revenue Service Change To Note Social security wage base for 2000.   Stop withholding social security tax after an employee reaches $76,200 in taxable wages. General Instructions Purpose of Form Use Form 941 to report: • Income tax you withheld from wages, including tips, supplemental unemployment compensation benefits, and third-party payments of sick pay. • Social security and Medicare taxes. Who Must File Employers who withhold income tax on wages, or who must pay social security or Medicare tax, must file Form 941 each calendar quarter. After you file the first Form 941, you must file a return for each quarter, even if you have no taxes to report (but see the seasonal employer and final return information below). If you filed Form 941 on magnetic tape or by electronic or TeleFile methods, do not also file a paper Form 941. Seasonal employers are not required to file for quarters when they regularly have no tax liability because they have paid no wages. To alert the IRS that you will not have to file a return for one or more quarters during the year, check the Seasonal employer box above line 1 on Form 941. The IRS will mail two Forms 941 to you once a year after March 1. The preprinted name and address information will not include the date the quarter ended. You must enter the date the quarter ended when you file the return. The IRS generally will not inquire about unfiled returns if at least one return showing tax due is filed each year. However, you must check the Seasonal employer box on each quarterly return you file. Otherwise, the IRS will expect a return to be filed for each quarter. Exception.   Employers of the following categories of workers do not usually file Form 941. Household employees. See Pub. 926, Household Employer's Tax Guide, and Schedule H (Form 1040), Household Employment Taxes. Farm employees. See Form 943, Employer's Annual Tax Return for Agricultural Employees, and Circular A, Agricultural Employer's Tax Guide (Pub.   51). Business reorganization or termination.   If you sell or transfer your business, you and the new owner must each file a return for the quarter in which the transfer occurred. Each should report only the wages it paid. A change from one form of business to another, such as from sole proprietorship to partnership or corporation, is considered a transfer and requires a new employer identification number (EIN). See section 1 of Circular E. If a change occurs, please attach a statement to your return that shows: new owner's name (or new name of the business); whether the business is now a sole proprietorship, partnership, or corporation; kind of change (sale or transfer); and date of change. When a business is merged or consolidated with another, the continuing firm must file the return for the quarter in which the change took place. The return should show all wages paid for that quarter. The other firm should file a final return. Final return.   If you go out of business or stop paying wages, file a final return. Be sure to check the final return box and enter the date final wages were paid above line 1. See the Instructions for Forms W-2 and W-3 for information on the earlier dates for the expedited furnishing and filing of Form W-2 when a final Form 941 is filed. Preparing the Form The following will allow the IRS to process Form 941 faster and more accurately: l  Make dollar entries without the dollar sign and comma (0000.00). l  Enter negative amounts in parentheses. l  File the Form 941 that has your preprinted name and address. When To File File starting with the first quarter in which you are required to withhold income tax or pay wages subject to social security and Medicare taxes. If you made deposits on time in full payment of the taxes for a quarter, you have 10 more days after the above due date to file. Your return will be considered timely filed if it is properly addressed and mailed First-Class or sent by an IRS designated delivery service on or before the due date. See Circular E for more information on IRS designated delivery services. If the due date for filing a return falls on a Saturday, Sunday, or legal holiday, you may file the return on the next business day. Where To File See the back of Form 941 for the mailing address for your return. Depositing Taxes If your net taxes (line 13) are $1,000 or more for the quarter, you must deposit your tax liabilities at an authorized financial institution with Form 8109, Federal Tax Deposit Coupon, or by using the Electronic Federal Tax Payment System (EFTPS). See section 11 of Quarter Ending Due Date Jan.-Feb.-Mar. March 31 April 30 Apr.-May-June June 30 July 31 July-Aug.-Sept. Sept. 30 Oct. 31 Oct.-Nov.-Dec. Dec. 31 Jan. 31 Cat. No. 14625L