Preparing Your Tax Return(s) and InformationReturns
Employment Taxes
     

Form 941, Form 941TeleFile, EmployersQuarterly Tax Return

Each quarter, all employers who pay wages subject to income taxwithholding (including withholding on sick pay and supplemental unemployment benefits) orsocial security and Medicare taxes must file Form 941, Employer's Quarterly Federal Tax Return.

Filing Form 941

Changes To Note

Employment Tax Rates and Wage Bases for 2000

1) Social Security Tax:

a) Tax Rate-6.2% each for employers and employees
b) Wage Base-$76,200

2) Medicare Tax:

a) Tax Rate-1.45% each for employers and employees
b) All wages subject to Medicare tax

3) Federal Unemployment (FUTA) Tax:

a) Tax Rate-6.2% before state credits (employers only)
b) Wage Base-$7,000

Table 3. SocialSecurity and Medicare Tax Rates (For 3 prior years)

Hints onfiling. Do not report more than one calendar quarteron a return.

Use the preaddressed form mailed to you. If you do not have theform, get one from any IRS office in time to file the return when due. If you use a formthat is not preaddressed, show your name and EIN on it. Be sure they are exactly as theyappeared on earlier returns. See the Instructionsfor Form 941 for suggestions for preparing the form.

ReconcilingForms W-2, W-3, and 941

Whereto file

Important References                                                      

Publication 15 Circular E, Employer’s Tax Guide
Form941 Employer’s Quarterly Federal Tax Return
Instructionsfor Form 941