Line by Line Form 941 Instructions

• Line #1: Enter the number of employees you had that received wages for that quarter.
• Line #2: Enter the taxable wages paid to employees. (Do not include the minister's housing allowance)
• Line #3: Enter the amount of federal income tax withheld from employees’ checks for the quarter.
• Line #4: Check this box only if no wages, or compensations were subject to social security and Medicare such as a qualifying minister.(If you checked this box...you can skip down to line 6e.)
• Line #5a: Enter the amount of taxable wages paid to non-minister employees. (Do not include any amounts paid to qualifying ministers.)
• Line #5a-Column 2: Multiply line 5a by percentage shown.
• Line #5b: Does not apply to churches.
• Line #5c: Enter the amount of taxable wages paid to non-minister employees. (Do not include any amounts paid to qualifying ministers)
• Line #5c- Column 2: Multiply line 5a by percentage shown.
• Line #5d: Total social security and Medicare taxes due.
• Line #5e: Skip
• Line #6a-d: Skip
• Line #6e: Add lines 3 and 5d.
• Line #7 thru 9: Churches will not usually need to use these lines.
• Line #10: Add lines 6e thru 9. Usually will just be the amount on 6e.
• Line #11: Total deposits for the quarter.(This is for medium category churches with a payroll tax liability over $2500 per quarter that have been making monthly deposits)
• Line #12a and b: If this applies see the IRS Form 941 Instruction Booklet.
• Line #13: Add lines 11 and 12a
• Line #14: If line 10 is more than line 13, enter the difference. This is usually the amount from line 10.
• Line #15: If line 13 is more than line 10, enter the overpayment.

Turn to page 2 and fill in your church name and EIN at the top of the page.

If your church does not make monthly or semi-weekly deposits and is still paying wages...and you do not want to designate a third-party to discuss this return with the IRS...then skip to Part 5 and sign your name, print your name and official title, date, and include phone number in case the IRS has any questions :)

Go back to the Payroll Tax Forms: Form 941 Information and Instructions page and follow the remaining steps.

If you need to fill out Part 2, 3, or 4. Follow the instructions in the IRS Form 941 Instruction Booklet.

Go to Nonprofit Accounting from Form 941 instructions.




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