2017 Form 941 Schedule B

The 2017 Form 941 Schedule B is a supplementary form to the Internal Revenue Service (IRS) Form 941 for reporting tax liability for federal income tax withholdings, social security tax, and Medicare tax. It is specifically designed for employers who have total quarterly tax liabilities of $2,500 or more, and who are required to report payments made to employees in the respective tax period.

Overview:

As an essential part of the tax reporting process, the 2017 Form 941 Schedule B functions as an attachment to the primary Form 941, enabling employers to provide a detailed breakdown of tax liability for each employee. By completing the Schedule B, employers provide the IRS with crucial information regarding each individual’s wages, tips, and other pertinent data that contribute to the calculation of various payroll taxes.

Purpose:

The primary purpose of the 2017 Form 941 Schedule B is to ensure accurate and efficient reporting of federal taxes withheld from employees’ earnings and employers’ liability for social security and Medicare taxes. By providing a comprehensive overview of these tax liabilities on a per-employee basis, the IRS can verify the accuracy of the employer’s total tax liability stated on the main Form 941.

Filing Requirements:

The 2017 Form 941 Schedule B must be completed and submitted alongside Form 941 if an employer meets the following criteria:

1. Total tax liability for the quarter, including federal income tax, social security tax, and Medicare tax, is $2,500 or more.
2. The employer made any semiweekly or monthly deposits for the quarter, irrespective of the total tax liability.
3. The employer accumulated taxes for the quarter for both the current and prior quarters or for the quarter of their final return.

It is important to note that employers who use the Form 941 Schedule B are generally required to deposit their tax liabilities through the Electronic Federal Tax Payment System (EFTPS).

Sections:

The 2017 Form 941 Schedule B consists of several sections for reporting and summarizing employee tax liabilities, ensuring accurate calculations, and reconciling the total tax liability with deposited tax payments. The key sections include:

1. Column 1: Employee Social Security Tax Withheld
2. Column 2: Employee Medicare Tax Withheld
3. Column 3: Employee Income Tax Withheld
4. Column 4: Qualified Small Business Payroll Tax Credit
5. Column 5: Current Quarter’s Adjustment for Fractional Shares of Pennies
6. Column 6: Total Taxes After Adjustments
7. Summary Section: Reconciliation of Total Taxes Reported and Deposited

Completing the 2017 Form 941 Schedule B:

To complete the 2017 Form 941 Schedule B accurately, employers need to carefully review their payroll records and ensure accurate calculation of social security, Medicare, and income tax withholding for each employee. The form must then be attached to the main return, Form 941, for the relevant tax period.

It is advisable to consult with a qualified tax professional or utilize specialized payroll software to ensure proper completion of the 2017 Form 941 Schedule B and adherence to IRS guidelines.

Conclusion:

The 2017 Form 941 Schedule B is a critical document for employers with significant tax liabilities and provides a detailed breakdown of taxes withheld from employees’ wages. By accurately completing this supplementary form and attaching it to the main Form 941, employers fulfill their tax reporting obligations and help ensure compliance with IRS regulations.