Form 941 Schedule B for 2025

How to fill out Schedule B Form 941?

Here are the step-by-step instructions to fill out Form 941 Schedule B:

1. Enter employer information: This includes your EIN, business name, and address.
2. Choose quarter: Select the quarter for which you are filing Form 941.
3. Enter tax liability breakdown: Enter your daily tax liability on the appropriate dates when wages were paid.
4. Calculate total liability: This is the sum of your monthly tax liabilities. The total must equal line 12 on Form 941.
5. Adjust tax liability for the qualified small business payroll tax credit for increasing research activities (Form 941, line 11): This is required if you attach Form 8974 in line 11 of Form 941.

When is Form 941 Schedule B due for 2025?

Schedule B is filed along with Form 941. Therefore, the due date to file 941 Schedule B is the same as the
due date of Form 941.

Upcoming Deadline: File Form 941 for the first quarter by April 30th!

It’s important to note that you may have a separate deadline to deposit your taxes reported on your 941 form.

Click here to learn more about the 941 deposit and filing deadlines.

What happens if you don't file 941 Schedule B?

Schedule B is used by the IRS to determine if you've deposited your federal employment tax liabilities on time. If you fail to file your Schedule B before the due date, the IRS may impose an “averaged” FTD (Failure-to-deposit) penalty.

Penalties will be applicable if you fail to make deposits on time or if you make deposits for less than the required amount.

Click here to learn the penalty rates for late depositing your taxes.

How to correct errors on Form 941 Schedule B?

If you have reported incorrect information on your previously filed Form 941 Schedule B (accepted by the IRS), you may need to file a correction using Form 941-X.

Correction depends on whether you have a change in total tax liability or not.

• If you have no change in total tax liability

  Suppose the error in Form 941 Schedule B does not affect the total tax liability of the form. In that case, you can file 941 Schedule B separately, write 'Amended' at the top, and send it to the address specified in your FTD penalty letter. There is no need to file Form 941-X along with your schedule if you have no change in total tax liability.

  For example, consider that you have reported a tax liability of $5,000 on day 1 of month 1. However, the tax liability is to be reported in month 2, and it doesn't affect the total tax liability. To correct this error, use the Form 941 Schedule B, enter the tax liability correctly, and correct it.

• If you have any change in total tax liability

  If you have a tax increase or decrease in Form 941 Schedule B, you must file the schedule along with Form 941-X.

  • Tax decrease: While filing amended Schedule B along with 941-X, you must ensure the total tax liability reported on the amended Schedule B is equal to the tax liability mentioned on Form 941-X.
  • Tax increase: If you have a tax increase and you are filing Form 941-X on time, you only need to file an amended Schedule B if you were assessed an FTD penalty caused by an incorrect, incomplete, or
    missing Schedule B.