2016 Form 941 Schedule B

The 2016 Form 941 Schedule B is an important document used by employers in the United States to provide additional information about their tax liabilities under the federal tax system. This schedule is filed in conjunction with the primary 2016 Form 941, also known as the Employer’s Quarterly Federal Tax Return.


As part of the tax obligations of employers, the Internal Revenue Service (IRS) requires the filing of the 2016 Form 941 Schedule B when certain conditions apply. Generally, employers who are subject to federal income tax withholding, Social Security tax, or Medicare tax are required to file Form 941 on a quarterly basis, reporting the amounts withheld from employee wages and the employer’s share of Social Security and Medicare taxes. However, in certain situations, additional information may need to be reported, and that is where the 2016 Form 941 Schedule B comes in.

The purpose of the 2016 Form 941 Schedule B is to provide the IRS with a breakdown of the total taxes reported on Form 941. This schedule is specifically used when an employer is reporting backup withholding or advanced earned income credit (EIC) payments. Backup withholding occurs when the employer withholds a specific amount from an employee’s wages to cover potential tax liabilities should the employee fail to provide the necessary taxpayer identification number (TIN) or provide an incorrect one. On the other hand, advanced EIC payments refer to the option offered to certain eligible employees to receive a portion of their earned income credit payments throughout the year rather than in a lump sum at tax time.

The 2016 Form 941 Schedule B requires additional calculations to determine the correct amounts to report. Specifically, employers are required to list the total number of employees receiving wages during the quarter, the total wages subject to Social Security tax, the total wages subject to Medicare tax, the total income tax withheld, and the total Social Security and Medicare taxes withheld. By providing these additional details, the schedule ensures that the IRS receives a comprehensive view of an employer’s tax responsibilities.

It is important to note that not all employers will need to file the 2016 Form 941 Schedule B. Only those employers who meet the specific criteria outlined by the IRS, such as having backup withholding or advanced EIC payments, will be required to include this schedule with their Form 941. Employers are advised to carefully review the instructions provided by the IRS to determine whether they need to file the 2016 Form 941 Schedule B or any other additional forms.

Overall, the 2016 Form 941 Schedule B plays a vital role in accurately reporting an employer’s tax liabilities under the federal tax system. By providing a breakdown of backup withholding and advanced EIC payments, this schedule ensures that the IRS has a complete understanding of an employer’s tax obligations. Employers are urged to consult with a tax professional or refer to the instructions provided by the IRS to ensure compliance with the filing requirements related to the 2016 Form 941 Schedule B.

This glossary is made for freelancers and owners of small businesses. If you are looking for exact definitions you can find them in accounting textbooks.

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