Question

Lidge Company of Texas (TX) is classified as a monthly depositor and pays its employees monthly. The following payroll information is for the second quarter of 20--.

WITHHOLDINGS										EMPLOYER'S
	Wages		OASDI		HI		FIT			OASDI		HI
April	$86,100		$5,338.20		$1,248.46		$9,650			$5,338.20		$1,248.45
May	92,500		5,735.00		1,341.26		10,005			5,735.00		1,341.25
June	73,400		4,550.80		1,064.30		8,995			4,550.80		1,064.30
Totals	$252,000		$15,624.00		$3,654.02		$28,650			$15,624.00		$3,654.00
The number of employees on June 12, 20-- was 11.

a. Complete the following portion of Form 941. If an amount box does not require an entry, leave it blank.

Part 1:

Answer these questions for this quarter.

1.	Number of employees who received wages, tips, or other compensation for the pay period including: Mar. 12 (Quarter 1), June 12 (Quarter 2), Sept. 12 (Quarter 3), Dec. 12 (Quarter 4)	1
2.	Wages, tips, and other compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2
3.	Income tax withheld from wages, tips, and other compensation . . . . . . . . . . . . . . . . . . . . . . . .	3
4.	If no wages, tips, and other compensation are subject to social security or Medicare tax	☐ Check and go to line 6.
Column 1   Column 2 5a Taxable social security wages . x .124 = 5b Taxable social security tips . . . x .124 = 5c Taxable Medicare wages & tips x .029 = 5d Taxable wages & tips subject to Additional Medicare Tax withholding x .009 =
5e	Add column 2 from lines 5a, 5b, 5c, and 5d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5e
5f	Section 3121(q) Notice and Demand-Tax due on unreported tips (See instructions) . . . . . .	5f

b. Complete the following portion of Form 941. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent.

	6.	Total taxes before adjustments (add lines 3, 5e, and 5f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		6
	7.	Current quarter's adjustments for fractions of cents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		7
	8.	Current quarter's adjustments for sick pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		8
	9.	Current quarter's adjustments for tips and group-term life insurance . . . . . . . . . . . . . . . . . . . . . . . .		9
	10.	Total taxes after adjustments. Combine lines 6 through 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		10
	11.	Qualified small business payroll tax credit for increasing research activities. Attach Form 8974		11
	12.	Total taxes after adjustments and credits. Subtract line 11 from line 10		12
	13.	Total deposits for this quarter, including overpayment applied from a prior quarter and overpayment applied from Form 941-X, 941-X (PR), 944-X, or 944-X (SP) field in the current quarter . . . . . . . . .		13
	14.	Balance due. If line 12 is more than line 13, enter the difference and see instructions . . . . . . . . . . . .		14
	15.	Overpayment. If line 13 is more than line 12, enter the difference  Check one: ☐ Apply to next return. ☐ Send a refund

c. From the information presented above, complete Part 2 of Form 941. Round your answers to the nearest cent.

Name (not your trade name)

Employer Identification number (EIN)

Part 2:

Tell us about your deposit schedule and tax liability for this quarter.

If you are unsure about whether you are a monthly schedule depositor or a semiweekly schedule depositor, see section 11 of Pub. 15.

16 Select one: a. Line 12 on this return is less than $2,500 or line 12 (line 10 if the prior quarter was the fourth quarter of 2016) on the return for the prior quarter was less than $2,500, and you didn't incur a $100,000 next-day deposit obligation during the current quarter. If line 12 (line 10 if the prior quarter was the fourth quarter of 2016) for the prior quarter was less than $2,500 but line 12 on this return is $100,000 or more, you must provide a record of your federal tax liability. If you are a monthly schedule depositor, complete the deposit schedule below; if you are a semiweekly schedule depositor, attach Schedule B (Form 941). Go to Part 3. b. You were a monthly schedule depositor for the entire quarter. Enter your tax liability for each month and total liability for the quarter, then go to Part 3. Tax liability:      Month 1 Month 2 Month 3 Total liability for quarter Total must equal line 12. c. You were a semiweekly schedule depositor for any part of this quarter. Complete Schedule B (Form 941): Report of Tax Liability for Semiweekly Schedule Depositors, and attach it to Form 941.

d. What are the payment due dates of each of the monthly liabilities assuming all deposits were made on time, and the due date of the filing of Form 941 (year 20--)?

	April liabilities
	May liabilities
	June liabilities
	Form 941 due date

Answer 1

:: Solution ::

Part 1:
1				11
2				$252000
3				$28650
4
5a	$252000	x .124	$31248
5b	$0	x .124	$0
5c	$252000	x .029	$7308
5d	$0	x .009	$0
5e				$38556
5f				$0
6				$67206
7				$0.02
8				$0
9				$0
10				$67206.02
11				$67206.02
12				$0
13				$0
Part 2:
Tax liability:		Month 1	$22823.31
		Month 2	$24157.51
		Month 3	$20225.20
			$67206.02