Time to file Quarter 4 941 reports

It’s time to file your final 941 Quarterly Payroll Reporting to the Internal Revenue Service and report wages to the Texas Workforce Commission for the previous calendar year.

Quarter 4 941 forms are due JANUARY 31, 2020.

What is a 941?

IRS Form 941 is a quarterly report of wages paid to employees and the withholdings made by employers to the IRS in the quarter while processing payroll.  The form also includes information on the employer’s share of Medicare and Social Security taxes during the period reported. 941 forms must be mailed or e-filed to the IRS.  Charter School Success (CSS) prepares the form quarterly for our back-office service clients, then sends it to the client for their review, approval and recommended certified mailing to the IRS. As a partner, CSS will follow up with our clients to ensure the report is mailed by the required date.

What do I need to know to file this return?

• Total wages paid to employees to include gross, Medicare and Social Security wages for all employees
• Total related withholdings for the quarter for all employees
• Total amount paid and the date of liability for the quarter of reporting
• Total number of employees who received wages, tips, or other compensation for the pay period

Most accounting information systems have reports to help consolidate this information and for our back-office services clients, we here at CSS ensure that all payroll-related taxes are paid and reported timely to avoid any IRS issues.

Why do I file 941?

IRS 941 forms must be filed so the IRS can reconcile wages and withholdings and process tax payments. Penalties and interest can be incurred by the employer for not properly filing 941 forms.

Who needs to file 941?

Employers that pay wages to employees and withhold taxes must file a 941 form. See the official IRS instructions.

When do I file 941?

941 Forms are filed quarterly, on the last day of the month following the close of the quarter.

• Quarter 1 (Jan-Mar): 941 due April 30
• Quarter 2 (Apr-Jun): 941 due July 31
• Quarter 3 (Jul-Sept): 941 due Oct 31
• Quarter 4 (Oct-Dec): 941 due Jan 31

Where do I mail my reports?

Without a payment:

In the state of Texas, charters are required to mail the form to Department of Treasury, Internal Revenue Service Ogden, UT 84201-0005.

With a payment:

In the state of Texas, charters are required to mail the form to Internal Revenue Service, P.O. Box 37941, Hartford, CT 06176-7941.

Our recommendation is that you send the report by certified mail to show proof of delivery and to timestamp when it was sent.

What does this form prove?

It proves that the Charter is paying the required payroll taxes timely on a quarterly basis to the IRS.  Most charters (based on the size of the payroll liability to the IRS) are required to make payroll liability deposits to the IRS within 5 days from the date of liability and, depending on the amount, may need to make those deposits within 24 hours. See Publication 15 (Circular E) to determine your charter’s specific deposit requirements.  Failure to meet these deadlines could lead to penalties and interest incurred by the employer.

Due to the sensitivity of this responsibility, CSS policy and procedures are to ensure all payroll tax liabilities for each payroll processed are submitted within the required timeframe based on the charter’s specific deposit requirements.

Reconciling Forms W2, W3 and 941

Since all 4 quarter 941’s are used to balance the annual W2 and W3 forms, it is important to ensure that the annual W2 forms are in balance before submitting the quarter 4 941.  Any adjustment that is needed to correct W2 balancing can be recorded on the quarter 4 941.  If an error is discovered after a 941 has been filed for any quarter and an adjustment is required, form 941-X will need to be filed in order to make the correction.  Best practice is to file a 941-X as soon as an error has been discovered and to only make W2 balancing corrections of the quarter 4 941.

Is filing my Quarterly Texas Workforce Commission (TWC) report the same as my 941?

NO!  The Texas Workforce Commission (TWC) Rules 815.107 and 815.109 require all employers to report Unemployment Insurance (UI) wages and to pay their quarterly UI taxes electronically. Employers that do not file and pay electronically may be subject to penalties as prescribed in Sections 213.023 and 213.024 of the Texas Unemployment Compensation Act (TUCA).

Where do I file my TWC reports?

Visit the website at https://apps.twc.state.tx.us/UITAXSERV/security/logon.do and log in to file your quarterly TWC wage report to the Texas Workforce Commissiothe n.

When do I file TWC wage report?

The TWC wage report is filed at the same time you file the 941 forms.  They are required to be filed quarterly, on the last day of the month following the close of the quarter.

• Quarter 1 (Jan-Mar): TWC wage report due April 30
• Quarter 2 (Apr-Jun): TWC wage report due July 31
• Quarter 3 (Jul-Sept): TWC wage report due Oct 31
• Quarter 4 (Oct-Dec): TWC wage report due Jan 31

Does filing these reports affect Charter FIRST?

YES!  Critical Indicator # 4 specifically asks, “Did the charter school make timely payments to the Teachers Retirement System (TRS), Texas Workforce Commission (TWC), Internal Revenue Service (IRS), and other government agencies?”

The 941 Quarterly reports will indicate on the report if the Charter did or did not make the required payments to the IRS.

How would the Texas Education Agency know if I
did or did not file my Quarterly 941 or TWC wage report(s)?

During the annual financial audit of the charter’s accounting records, it is the responsibility of the auditor to review and ensure that payments were made timely and in full to the IRS.  To do this, the auditor will request and review the 941 quarterly reports for the fiscal year of the audit.  They will pull a UCC filing report to determine if the IRS has filed any levy on the school for not filing their 941 quarterly reports or if when reviewing the reports, they identify that payments were either not made in full or at all.

To determine if the TWC wage reports were filed, the auditor will request a copy confirmation of the quarterly filing.

Need help or more information?

Charter School Success is committed to ensuring our clients are in compliance with all rules and regulations, so we are diligent about making sure that this and other reports are filed to ensure full compliance with all TEA rules, laws and federal regulations for our back office clients.  Filing this report is part of the full Back office suite CSS provides in conjunction with processing payroll for our clients. Reach out for more information.