Which taxes are reported on Form 941 quarterly?

• A. Social Security tax, Medicare tax, and federal income tax withholding, plus employer share of Social Security and Medicare.
• B. Only Social Security tax.
• C. Only Medicare tax.
• D. Only federal unemployment tax.

Answer: (A)

Form 941 is the quarterly return used to report the taxes an employer owes on payroll for that quarter. It includes the total liability for the taxes that fund FICA: the Social Security tax and the Medicare tax, covering both the employee’s withholding and the employer’s matching share. It also includes the federal income tax withheld from employees’ wages. In addition, the employer’s portion of Social Security and Medicare taxes is part of what’s reported on Form 941. Unemployment taxes (FUTA) aren’t on Form 941; they’re reported separately on Form 940. So the correct understanding is that Form 941 covers Social Security tax, Medicare tax, federal income tax withholding, and the employer’s share of Social Security and Medicare, all calculated and remitted on a quarterly basis.