Which of the following statements about Schedule B on Form 941 is correct?

• A. It reports payroll tax liability by semiweekly or monthly schedule for specific periods
• B. It is never used for household employment taxes
• C. It reports unemployment compensation
• D. It reports employee wages

Answer: (C)

Schedule B on Form 941 is the part that shows the employer’s tax liability for the quarter and whether those taxes are deposited on a semiweekly or monthly schedule. It’s about submitting the amount due and the timing of deposits, not about the actual wages or the benefits of unemployment. Unemployment compensation is handled through FUTA on Form 940 (and state unemployment systems), not on Schedule B. Employee wages are reported on the main Form 941 lines and reflected on the employees’ W-2s, while household employment taxes are filed with Schedule H on Form 1040, not Schedule B. So the statement that best fits Schedule B’s function is that it reports the payroll tax liability and the deposit schedule for the quarter.