An article published on the National Tax Reports website discusses the changes which have been made to IRS Form 941, including those to employee social security taxes and Medicare tax withholdings.
July 12, 2016 — Tax expert and author Frank Ellis has published an article on the National Tax Reports website detailing the IRS changes to Form 941 this year. It first reveals a 2% increase in the amount paid in social security taxes for employees. Another change noted is an additional Medicare tax withheld from higher income employee payrolls.
Form 941, or the Employers Quarterly Federal Tax Form, reports payroll taxes owed by employers and employees, according to the author. The amounts withheld from paychecks and what the company has paid in taxes from employee withholdings are included. Also, the form reports calculations of totals due for the quarter, what has been paid, and what the employer still owes.
The article then goes on to explain the changes in more detail. An increase in social security tax for employers means the rate will be at 6.2%. The tax employers/employees will have to pay, the author says, will be 12.4% of their gross wages. Where the changes can be found on the form is also identified.
Medicare tax withholdings will apply to employees earning over $200,000. The additional Medicare tax based on income level and filing status is explained further. In addition, the author goes on to detail how Form 941 is submitted and what the due dates are during each quarter. Underpayments are addressed by paying the balance via voucher 941-V, Ellis states.
The article ends revealing the benefits of filing taxes with TurboTax Online and how it helps with deductions and refunds. Benefits include the automatic choosing of tax forms based on the user’s information.
To learn more about the current changes to IRS Form 941, go to http://nationaltaxreports.com/irs-changes-to-form-941/.
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial and tax websites.
National Tax Reports
945 East 8th Street Suite A
Traverse City, Michigan 49686