Video instructions and help with filling out and completing Fill Form 944 Pr Arent

Instructions and Help about Fill Form 944 Pr Arent

Hello in this lecture we will define form 941 according to fundamental accounting principles wild 22nd edition the definition of form 941 is IRS form filed two reports FICA taxes owed and remitted when we think about form 941 we're thinking about payroll taxes a payroll tax form a payroll tax reporting form FICA is going to be the law that governs Social Security and Medicare the form 941 is going to show what the liability is in relation to the Social Security the Medicare as well as the federal income tax that has been withheld not for the corporation on corporate wages or corporate net income that is but for the withholdings from employees for their federal income tax withholding the form is going to look like this we've got the information up top it's an information form a reporting form that's done quarterly here each quarter this form needs to be reported it's gonna basically show the wages that have been earned by all the employees for that time period it's going to show the amount of federal income tax withholding from all the employees only way to get that is just basically to add up what those withholdings are because of the complication in terms of the progressive tax system then it's going to calculate the Social Security and Medicare taxes which is going to be a different number in terms of total wages generally because there could be there could be a different number because there could be a cap in terms of Social Security but once we have that number we can actually calculate the liability very easily because it's a flat tax so we'll calculate the liability on that and in essence we're going to then compare that to what the payments have been made throughout the time period so like a form 1040 when we report our own individual income taxes we've already withheld all the taxes by the time we report the 1040 at the end of the year it's more of a just an information form in that we're saying here's our tax liability based on the that we now know here's the payments that we have already made for the year typically we get a refund in terms of the form 1040 if we're a w-2 employee that's how the system is typically set up in terms of the 941 we can actually be much more exact because of the fact that Social Security Medicare are flat taxes so we're saying to the IRS here's here's the amount of liability based on what we know and we should have paid pretty much that exact same amount therefore not owing anything however if we do owe something then we would report what we do owe or what has been overpaid at this point on the form also important to note when we think about Social Security and Medicare there's an employee portion and an employee portion the employee portion is going to be pulled out of the wages it's going to be reported on Form w2 this reports going to report both the employee portion and the employer portion because the employer is responsible for actually making the check payments - or electronic payments to the IRS so half of the payments that they're making are actually being pulled from the employees wages the other half are being employed and pulled from the employers checking account but the actual money is going from the employer to the IRS and it's being reported on form 941 Music Music you.