941 Quarterly Federal Tax Return - Maintain Data - Part 2

Use the Part 2 tab on the 941 Quarterly Federal Tax Return page to report the deposit schedule and tax liability for the 941 return. It informs the IRS about what type of depositor you are (monthly or semiweekly), reports when tax liability was incurred during the quarter, and provides the detailed breakdown needed to verify that required deposits were made on time. For monthly depositors, this is a simple three-month summary; for semiweekly depositors, it requires detailed Schedule B documentation showing daily liabilities.

During the data load process, the system automatically:

• Selects the appropriate deposit schedule option based on employer setup.

• Calculates monthly tax liability totals (Boxes 47-50) for monthly depositors.

• Generates daily Schedule B liability data for semiweekly depositors.

• Stores all liability dates and amounts in the database.

For more detailed information and the latest file layout specification, search for and refer to the current versions of the following documents on the IRS website:

• Instructions for Form 941

• General Instructions for Forms W-2 and W-3

Field descriptions

The Part 2 tab on the 941 Quarterly Federal Tax Return page consists of the following sections or options:

• Option 1

• Option 2

• Option 3

Option 1

This section describes the first option on the Part 2 tab on the 941 Quarterly Federal Tax Return page.

Field name

Line 12 on this return is less than $2,500 or line 12 on the return for the prior quarter was less than $2,500, and you didn't incur a $100,000 next-day deposit obligation during the current quarter. If line 12 for the prior quarter was less than $2,500 but line 12 on this return is $100,000 or more, you must provide a record of your federal tax liability. If you're a monthly schedule depositor, complete the deposit schedule below; if you're a semiweekly schedule depositor, attach Schedule B (Form 941). Go to Part 3

Description

Indicates that you are a small employer who qualifies for the de minimis deposit exception.

This option allows eligible small employers to pay their employment taxes when they file Form 941, rather than making periodic deposits throughout the quarter. This simplifies tax compliance for businesses with minimal tax liability.

You must evaluate your situation and check this box if you meet the qualification criteria.

You can check this box if all of the following conditions are met:

• Current or Prior Quarter Threshold:

  • Your total taxes after adjustments and nonrefundable credits (Line 12/Box 23 from Part 1) on this return are less than $2,500, or

  • Your Line 12 on the prior quarter's return was less than $2,500.

• No Large Deposit Obligation:

  • You did not accumulate $100,000 or more in tax liability on any day during the current quarter.

  • If you reach $100,000 in tax liability, you must deposit it by the next business day (the "next-day deposit rule").

Special condition:

If Line 12 for the prior quarter was less than $2,500 but Line 12 on the current return is $100,000 or more, you still qualify for simplified reporting. Still, you must provide a detailed record of your federal tax liability by completing the appropriate deposit schedule section below.

When to use:

• Check this box if you qualify and want to pay when filing instead of making deposits.

• After checking this box, skip the rest of Part 2 and proceed directly to Part 3.

• You can pay the amount due (from Part 1, Line 14) when you file the return.

Option 2

This section describes the second option on the Part 2 tab on the 941 Quarterly Federal Tax Return page.

Field name

You were a monthly schedule depositor for the entire quarter. Enter your tax liability for each month and total liability for the quarter, then go to Part 3

Description

Indicates that you are a monthly schedule depositor.

This option is for employers who are required to deposit their employment taxes on a monthly basis. Monthly depositors must deposit taxes accumulated during a calendar month by the 15th day of the following month.

You are a monthly depositor if your total tax liability during the IRS's "lookback period" (the 12-month period ending the prior June 30) was $50,000 or less. Most small to medium-sized employers fall into this category.

Requirements when checked:

When you select this option, you must:

1. Complete the three monthly tax liability fields below (Month 1, Month 2, Month 3).

2. Verify the total liability for the quarter.

3. Ensure your monthly deposits match the liabilities reported.

When this option is selected:

During the data load process, the system automatically checks this box if the value in the Deposit Schedule field on the 941 Quarterly Federal Tax Return - Employer Setup page is M - Monthly. The system retrieves this from the deposit_sched field in the irs_employersetup table.

Mutually exclusive:

You cannot check both this box and the semiweekly depositor box (Box 51). Only one deposit schedule applies per quarter.

After selecting this option:

Complete the monthly tax liability fields, then proceed to Part 3.

The following table describes the fields on the Part 2 tab on the 941 Quarterly Federal Tax Return page.

Option 3

This section describes the third option on the Part 2 tab on the 941 Quarterly Federal Tax Return page.

Field name

You were a semiweekly schedule depositor for any part of this quarter. Complete Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors, and attach it to Form 941. Go to Part 3

Description

Indicates that you are a depositor with a semiweekly schedule.

This option is for employers who are required to deposit their employment taxes more frequently than monthly depositors. Semiweekly depositors have shorter deposit deadlines based on when wages are paid.

You are a semiweekly depositor if your total tax liability during the IRS's "lookback period" (the 12-month period ending the prior June 30) was more than $50,000. Larger employers typically fall into this category.

Deposit schedule rules:

Semiweekly depositors must follow these rules:

• For wages paid Wednesday through Friday: Deposit by the following Wednesday

• For wages paid Saturday through Tuesday: Deposit by the following Friday

• If the deposit due date falls on a weekend or banking holiday, the deposit is due the next business day.

Requirements when this option is selected:

When you select this option, you must:

1. Complete Schedule B (Form 941) separately.

2. Report tax liability for each day you paid wages during the quarter.

3. Attach Schedule B to your Form 941 when filing.

4. Leave the monthly tax liability fields (Boxes 47-50) blank.

5. Proceed directly to Part 3.

When this option is selected:

During the data load process, the system automatically checks this box if the value in the Deposit Schedule field on the 941 Quarterly Federal Tax Return - Employer Setup page is S - Semiweekly. The system retrieves this from the deposit_sched field in the irs_employersetup table.

Schedule B data generation:

During the data load process, the system automatically:

1. Tracks tax liability on a daily basis using the gDayArray variable (3 months × 31 days).

2. Records the date and amount of liability for each check issued.

3. Stores this data in the irs_scheduleb table.

4. Generates Schedule B showing:

   • The dates on which the wages were paid.

   • The tax liability for each date.

   • A month-by-month breakdown.

Voided checks:

The system handles voided checks by:

• Subtracting the voided check's liability from the original issue date

• Tracking any remaining void amounts that couldn't be applied

• Reporting these in the schedule with appropriate notes

Mutually exclusive:

You cannot check both this box and the monthly depositor box (Box 46). Only one deposit schedule applies per quarter.

After Checking:

Verify that Schedule B has been generated with all daily liability data, then proceed to Part 3.