Quarterly 941 Payment Planning: When is Payment Due, Where to Send Form 941 with or without Payment, 941 Tax Penalties and Solutions if you Cannot Pay on Time

941 Tax Payments, Penalties & Solutions

In this article:

941 Tax Payments & Penalties & Solutions
There are some things you just don’t do: for example, you don’t throw Alex Pujols a fastball down the middle. You also don’t pet a growling dog, and you don’t tug on Superman’s cape. You definitely don’t back up over those spikes at the parking garage entrance.

So, there are things you just don’t do. Or at least things you shouldn’t.

You can add “You don’t miss a 941 payment” to that list, and make sure it’s near the top.

IRS tax payments: Form 941

  • Most U.S. employers are required to file a quarterly Federal Tax Return (One exception: Some smaller companies are eligible to file only an annual return, using Form 944. Your tax advisor will tell you if your business qualifies).
  • The 941 reports wages your company has paid and federal income tax withheld. It also lists social security and Medicare taxes withheld, and your company’s share of those social security and Medicare taxes. Of course, your quarterly tax payments are due with the form.

When is Form 941 due for 2017?

Quarter #Months IncludedDue Date*
Quarter 1Jan, Feb, MarApril 30 (Sun) ->
May 1, 2017 (Mon)
Quarter 2Apr, May, JunJul 31, 2017 (Mon)
Quarter 3Jul, Aug, SepOct 31, 2017 (Tue)
Quarter 4Oct, Nov, DecJan 31, 2018 (Wed)

* If the due date falls on a Saturday, Sunday or holiday, the filing date becomes the next business day.

When is Form 941 due for 2018?

Quarter #Months IncludedDue Date*
Quarter 1Jan, Feb, MarApril 30, 2018 (Mon)
Quarter 2Apr, May, JunJul 31, 2018 (Tue)
Quarter 3Jul, Aug, SepOct 31, 2018 (Wed)
Quarter 4Oct, Nov, DecJan 31, 2019 (Thu)

* If the due date falls on a Saturday, Sunday or holiday, the filing date becomes the next business day.

  • If you’re wondering where to mail form 941 without payment or with payment, check IRS locations here, because businesses in different states file 941 quarterly to different IRS locations. You can also file form 941 online.

Where to mail form 941 without payment or with payment

IF you are located in...Without a payment...With a payment...
Connecticut, Delaware, District of Columbia,
Florida, Georgia, Illinois,
Indiana, Kentucky, Maine,
Maryland, Massachusetts, Michigan,
New Hampshire, New Jersey, New York,
North Carolina, Ohio, Pennsylvania,
Rhode Island, South Carolina, Tennessee,
Vermont, Virginia, West Virginia,
Wisconsin
Department of the Treasury
Internal Revenue Service
Cincinnati, OH 45999-0005
Or file form 941 online.
Internal Revenue Service
P.O. Box 804522
Cincinnati, OH 45280-4522
Or file form 941 online.
Alabama, Alaska, Arizona,
Arkansas, California, Colorado,
Hawaii, Idaho, Iowa, Kansas,
Louisiana, Minnesota, Mississippi,
Missouri, Montana, Nebraska,
Nevada, New Mexico, North Dakota,
Oklahoma, Oregon, South Dakota,
Texas, Utah, Washington,
Wyoming
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0005
Or file form 941 online.
Internal Revenue Service
PO Box 37941
Hartford, CT 06176-7941
Or file form 941 online.
No legal residence or principal place of
business in any state.
Internal Revenue Service
P.O. Box 409101
Ogden, UT 84409
Or file form 941 online.
Internal Revenue Service
PO Box 37941
Hartford, CT 06176-7941
Or file form 941 online.
EXCEPTION for Exempt Organizations,
Federal, State and local
Government Entities and
Indian Tribal Government Entities
regardless of location.
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0005
Or file form 941 online.
Internal Revenue Service
PO Box 37941
Hartford, CT 06176-7941
Or file form 941 online.

Source: https://www.irs.gov/uac/where-to-file-your-taxes-for-form-941

What Do Form 941 Entries Include:

  • Number of employees
  • Total payroll for the reporting period
  • Taxes withheld from employees paychecks during the period
  • Total Social Security and Medicare wages
  • Calculation of taxable Social Security and Medicare wages for the period
  • Any adjustments made for tips, group life insurance, and sick days

Most importantly, Form 941 calculates the total tax liability and the total deposits made during the previous quarter. The difference between the total taxes due and the total deposits already made is the amount still owed.

941 Payroll Tax Penalties 941 Penalty Calculator

As you might have guessed, 941 payroll tax penalties for not filing on a timely basis and for not making the payments due can be severe.

  • Failing to File. If you file late, your company can be penalized by the IRS. The fines start at 5% of the tax due, but can escalate to 25%.
  • Failing to Pay. You can also be penalized for late payments, at a rate of .05% per month, but this fine can also increase to 25% of the tax owed.

IMPORTANT: In addition to the 941 payroll tax penalties – and this is where the damage to your company can really add up – the IRS can impose interest charges on the taxes owed. The interest is calculated at the federal short-term interest rate, plus 3 percentage points, and the interest is compounded daily. The meter starts running the day the taxes are due, so you’re better off paying the debt as soon as you can.

Here is an overview of the penalties you’d owe if you fail to pay on due date (detailed 941 Penalty Calculator here):

  • Your payment is 1 to 5 days late: 2% of the amount due
  • Your payment is 6 to 15 days late: 5% of the amount due
  • Your payment is 16 or more days late: 10% of the amount due
  • If you are notified of your delinquency and you do pay within 10 days: 15% of the amount due

Preparation for your 941 IRS Tax Payments

  • You can hire a payroll service or have a qualified employee handle the filing and payments. There are a number of good software programs that can streamline the process.
  • In terms of the actual payments, some companies use separate accounts to ensure there’s enough cash on hand to meet the obligation on the date due.
  • Ideally, after you have been through the process a few times, the 941 filing and payment should be a normal part of your company’s financial operations.

What to Do If You Can’t Pay Your Quarterly Tax Payments

But what if, despite all your careful planning, you find yourself in a position where you just can’t pay the tax due? As always, you should consult a qualified professional on any and every tax matter, but here’s a general plan for getting started.

You should still file the 941 Form, to avoid those penalties. In addition:

  1. Don’t hide! Have your tax advisor contact the IRS. Sooner is always better. IRS agents have a good deal of discretion when it comes to handling your case, so you help yourself by addressing the issue immediately.
  2. Prepare and plead your case. Have your advisor explain why your payment was late – problems at your company, personal issues, or even just forgetting to file and pay. (You may not want to try that last one more than once.) You should know that the IRS is set up to severely penalize only intentional non-compliance. And if you have a clean record with the IRS going into the negotiations, your chances are good for a more favorable outcome.
  3. Negotiate the payment plan and stick to it. Pay it off early, if possible.

If Cash Flow is Your Problem

941 tax: Cash flow problemAnd what if you discover that you’ll be short on cash and can’t make the October 31 payment, for instance, but have outstanding receivables expected to come in during November that could cover the shortage?

Consider an invoice factoring program with MP Star Financial. Invoice factoring is a highly flexible financing tool and perfect for helping a company meet 941 payments without taking on more debt. The transactions are easy to set up, the fees are very reasonable, and you can usually be paid on your invoices the same business day.

Don’t be late on a single 941 payment! 

Call for more information about invoice factoring. (800) 833-3765, extension 150 or use our online factoring application.

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2 Comments
  1. I just had a $200.00 penalty not for being late but because I didn’t send in the form with the payment

  2. Thank you for your comment. I hear of similar situations regularly. Because the IRS relies primarily upon self-reporting to track payroll deposits, penalties and interest are their “big stick” for getting timely payments and filings. It can be an expensive way to learn a valuable lesson.

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