Taking the Mystery out of Payroll Tax Forms

What is Form 941?

It is a payroll tax form used to report to the IRS:

• number of employees
• total wages paid during the quarter
• withholdings and total payroll taxes paid during the quarter

***For Canadian payroll tax forms..go to Church Treasurers of Canada Inc

When is Form 941 due?

If you withhold payroll taxes, you must submit a Form 941 Employers Quarterly report to the IRS according to the following schedule:

• First quarter ends March 31...report due April 30
• Second quarter ends June 30...report due July 31
• Third quarter ends Sept 30...report due Oct 31
• Fourth quarter ends Dec 31...report due Jan 31

How is Form 941 prepared?

*First: Summarize all your payroll information for the entire quarter

*Second: Enter information gathered into the Form 941

*Third: Sign the Form 941

*Fourth: Make a copy of it before you mail it to the IRS.

*Fifth: Include a check payable to the United States Treasury for the amount of the tax due. Put the Form number, year, and which quarter it is for on your check. Make sure you include the 941-V with your check. (Skip this step unless you are classified as small...have a payroll tax liability of $2,500 or less per quarter}

*Sixth: Mail in the preprinted envelope the IRS provided with your Form 941 package. Or if you don't have a preprinted envelope, look up the mailing address you need to send to on page 4 of the Form 941 instructions booklet. Notice there are different address for different states and if you are sending a payment in or not.

****Important: Most states have their own payroll tax forms due in the same month as the form 941s. Oklahoma’s is an OW-9 (Oklahoma Employers Withholding Tax Return) and is due by the 20th of the month following the close of the quarter (April 20, July 20, Oct. 20, and Jan. 20).

Form W-2 tells the IRS, the Social Security Administration, and the employee the amount of wages and withholdings for the year.

Form W-3 is the cover page for all the W-2s that will be submitted to the Social Security Administration. It summarizes the total wages and withholdings included on all the W-2s.

If you have paid employees, you must prepare W-2 and W-3 forms each year.

The W-2 has at least three copies. Copy A has preprinted red boxes and must be submitted to the Social Security Administration along with the W-3. Copies B and C have preprinted black boxes and are given to the employee.

Your organization should also keep a copy of each W-2s for its records.

When preparing the W-3, it is very important that the totals on the W-3 match the sums of totals on the four Quarterly 941 Forms.

When are Forms W-2 and W-3 due?

Copy B and C of each employee's W-2 should be postmarked by the end of January.

Copy A of all the W-2s and Copy A of the W-3 must be postmarked to the Social Security Administration by the end of February.

Notice that your organization does not send a copy of the W-2 and W-3 to the IRS. Instead, the Social Security Administration shares the W-2 and W-3 information with the IRS. So...the church or nonprofit does not have to send copies to both agencies.

For information on whether or not to include the gifts you gave your staff this year...read this article: "How do we report the gifts the church provides to volunteers?"

Form 1099-MISC communicates to the IRS and the recipient the amount of money your organization paid to the recipient during the year.

Your organization must send a 1099-MISC form to every independent contractor that you paid more than $600 in rents, services (including parts and materials), prizes and awards and other income payments.

Services include independent contractors who provide a service. Some examples of independent contractors include: repairmen, accountants, attorneys, cleaning services, and lawn care services.

You should also provide a 1099-MISC form to landlords, revival ministers, supply preachers and guest speakers if total paid to them in the year was over $600. Do not send 1099-MISC’S to corporations,

You should not pay an independent contractor until you have received a completed and signed W-9.

Use Form W-9 "Request for Taxpayer Identification Number and Certification" to obtain names, address, and taxpayer identification numbers (SSN or FEIN) from people you will be required to provide 1099-MISCs.

Have all independent contractors fill out a W-9 even if you think they are incorporated. If they are, there is a place on the W-9 for them to indicate they are incorporated.

Form 1096 is the cover page for the 1099s that will be submitted to the IRS. The 1096 summarizes the total payments included on all of the 1099s.

When are Forms 1099 & 1096 due?

Your organization must furnish Form 1099’s to the recipients by the end of January.

You must mail Form 1099’s and Form 1096 “Annual Summary and Transmittal of U.S. Information Returns” to the IRS by the end of February.

	Enter your search terms Submit search form
	Web www.freechurchaccounting.com

Recommended Reading and Products:

The Church Treasurer's Manual: A Practical Guide for Managing Church Finances - Book & CD-ROM By Bruce Nuffer / lifestream Have you been appointed church treasurer? This handy manual will help you do your job efficiently and effectively! Packed with time-saving tips and practical suggestions, it offers an easy-to-understand overview of basic accounting principles; explanation of tax regulations; record keeping forms for taxes, individual contributions, and weekly offerings; advice for handling payroll and other compensations; and more. 160 pages, softcover from Beacon Hill.

The Church Administrative Assistant's Handbook: A Practical Guide to Maximize the Ministry of the Pastor and Staff By Rose Graham / lifestream Optimize the efficiency of your church staff with this tried-and-tested tool! Includes position profiles and hiring expectations; questionnaires to help determine work style, personality, and spiritual gifts; guidelines for accomplishing daily tasks; tips for working with volunteers; policies and procedures; event planning; a CD-ROM with reproducible adaptable forms, checklists, and templates; and more. 176 pages, 3-ring binder from Beacon Hill.

Clergy Tax: For 2008 Returns By J. David Epstein / Gospel Light IRS regulations are ever changing, and to avoid costly mistakes you must stay current. Written by an attorney specializing in church tax law, this user-friendly step-by-step manual will assist you in accurately preparing your return and avoiding troublesome audits. Get up-to-date answers to your specific questions about housing allowances, medical reimbursements, social security, and more. 64 pages, softcover from Regal.

Zondervan 2009 Minister's Tax & Financial Guide: For 2008 Returns By Dan Busby, CPA / Zondervan If you find April 15th taxing in more ways than one, let Busby's easy-to-follow manual come to the rescue! The 2009 edition features a line-by-line explanation of the 1040 Form and recent changes in the tax code---with valuable hints about how to reduce next year's bill. Also includes guidance on compensation, retirement planning, and medical expenses. 192 pages, softcover.

Shield of Faith--Pewter Pendant By Bob Siemon Designs, Inc A timely reminder that God is always with us, no matter what we face! 100% lead-free pewter pendant measures 1" x 1.5" with 24" chain and reads: "Be strong and courageous. Do not be terrified; do not be discouraged, for the Lord your God will be with you wherever you go." Joshua 1:9b.Bestselling design suits both guys and girls, and provides a strong reminder of God's faithfulness.

(Additional sizes available by clicking on product link then clicking on link under "CBD Stock Number")

Free to Live Zippered Hoodie, White, Medium By Know Him Apparel 80% cotton, double fleece lining, white heavy weight zip hooded sweatshirt. Caption: "Therefore if the Son makes you free, you shall be free indeed. - John 8:36".

For more Christian and Christmas Music, Books, Bibles, and Gifts...please click on the banner below:

Return to home page from "Payroll Tax Forms".