If you’re a business or a non-profit based in the US and you have employees working for you on your payroll, then you are also responsible for withholding their federal income taxes and other taxes that are applicable on the employee’s monthly salary in compliance with IRS policies, such as the Social Security and Medicare tax for 2025. The IRS Form 941 for 2025, officially titled as “Employer’s QUARTERLY Federal Tax Return” is used to file and report the total amount of tax an employer withholds from employees.
As the name suggests, the IRS Form 941 is a quarterly form, so you have to prepare and submit this form to the IRS four times a year.
2025 updates:
- Please note that the IRS has released a draft version of the updated 941 form for 2025 - see here.
- Social Security wage base limit is increased to $176,100.
- Social Security and Medicare taxes apply to the wages of household workers who receive $2,800 or more in cash wages in 2025; and to election workers who are paid $2,400 or more in cash in 2025.