Utah Contractor Practice Exam

Form 941 must be submitted how often?

1. Weekly

2. Monthly

3. Quarterly

4. Annually

The correct answer is: Quarterly

Form 941, also known as the Employer's Quarterly Federal Tax Return, is required to be submitted by employers on a quarterly basis. This form is important as it reports income taxes, Social Security tax, and Medicare tax withheld from employee paychecks. It is utilized by the IRS to ensure that employers are accurately accounting for their payroll taxes throughout the year. Filing quarterly allows businesses to provide timely updates on their tax liabilities and any adjustments necessary for the taxes withheld from employees during that period. This frequency supports the monitoring of compliance with federal tax obligations and aids in maintaining accurate records. The other options represent different filing frequencies that do not apply to Form 941. Weekly and monthly filings are generally associated with other types of tax returns or payroll reporting, while an annual return would not provide the necessary interim data required by the IRS for payroll tax compliance. Therefore, submitting Form 941 quarterly reflects the requirement and the operational needs related to payroll tax reporting.