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Forms 941 and 940 in the payroll filing workflow
Federal payroll returns summarize different obligations. Reconcile payroll records, deposits and return totals separately so a completed filing does not hide an unpaid deposit or an unexplained balance.
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General information, not legal or tax advice.
Use the quarterly return for withheld and employer taxes
Form 941 reports federal income tax withheld, Social Security and Medicare taxes withheld, and the employer share of Social Security and Medicare. Publication 15 places quarterly filings at the end of the month following the quarter, with weekend and legal-holiday deadlines moving to the next business day.
Sources: IRS - About Form 941; IRS Pub 15 (2026)
Confirm the deposit schedule independently
The filing calendar and deposit calendar serve different purposes. IRS guidance bases monthly or semiweekly deposit status on a lookback period and includes special deposit rules. Compare the employer’s assigned schedule and actual payment confirmations with payroll liabilities before relying on the return balance.
Sources: IRS Pub 15 (2026)
Reconcile annual federal unemployment tax
Form 940 reports annual FUTA, which is paid by the employer rather than deducted from employee wages. For 2026, Publication 15 states a 6.0% rate on the first $7,000 of each employee’s wages before applicable state unemployment credit. Do not assume the full credit applies to California.
Sources: IRS - About Form 940; IRS Pub 15 (2026)
Leave the California credit reduction open until final
The Department of Labor says the final annual credit reduction is not determined until November 10. As of this October 2026 review, California’s final 2026 figure is not available. Check the linked DOL page before completing the annual calculation and use Schedule A where a credit reduction applies.
Sources: U.S. DOL - Potential 2026 FUTA Credit Reductions; IRS - About Form 940
Sources: use the quarterly return for withheld and employer taxes
Reconcile federal payroll returns
Tidwell helps organize payroll inputs, review records and support payroll reporting. We coordinate tax questions with your CPA and leave employment-law interpretation with your legal adviser.