Fill Form 944 Pr Arent 2024-2025

Hello, in this lecture, we will define Form 941 according to the fundamental accounting principles, Wild 22nd edition. The definition of Form 941 is the IRS form filed to report FICA taxes owed and remitted. When we think about Form 941, we're thinking about payroll taxes. It is a payroll tax reporting form that follows the law governing Social Security and Medicare (FICA). Form 941 shows the liability in relation to Social Security, Medicare, and federal income tax withholding for employees. It does not cover corporate wages or corporate net income. The form has an information section on top and is reported quarterly. It displays the wages earned by all employees for the specific time period and the amount of federal income tax withholding from employees. Calculating the Social Security and Medicare taxes is crucial. This total amount may differ from the total wages due to a cap in Social Security. Once we have the tax amount, it's simple to calculate the liability as it is a flat tax. We compare this liability with the payments made throughout the time period. Similar to Form 1040 for individual income taxes, Form 941 serves as an information form. It lets us report our tax liability and any payments made. Typically, individuals receive refunds when filing a Form 1040 as a W-2 employee. However, with Form 941, we can be more precise due to Social Security and Medicare's flat taxes. We present the IRS with our liability based on what we know and should have paid the exact same amount. If we owe anything, we report it on the form. It's essential to understand that both employees and employers contribute to Social Security and Medicare. The employee portion is deducted from wages and reported on Form W-2. The employer is responsible for making...