Payroll Tax Return Preparation
Federal payroll tax return preparation for US employers requiring Form 941 and Form 940 support, based on the employer's payroll records and confirmed filing scope.
We focus on federal return preparation rather than routine payroll processing.
FEDERAL EMPLOYMENT TAX RETURNS
QUARTERLY REPORTING
Form 941
Reports applicable federal income-tax withholding and Social Security and Medicare taxes.
ANNUAL FUTA REPORTING
Form 940
Reports the employer's annual Federal Unemployment Tax Act (FUTA) tax.
Filing requirements depend on the employer's circumstances.
Form 941 vs. Form 940
Both returns can apply to the same employer, but they report different federal employment-tax obligations.
Form 941
Form 941 is generally used by applicable employers to report federal income tax withheld from employees and Social Security and Medicare taxes, including the employer's share where applicable.
Frequency
Generally quarterly
Generally reports:
- Federal income tax withheld
- Social Security tax information
- Medicare tax information
- Employer share of applicable Social Security and Medicare taxes
- Reportable wages and tips where relevant
- Applicable adjustments and other required information
Form 940
Form 940 is used by applicable employers to report annual Federal Unemployment Tax Act (FUTA) tax.
Frequency
Annual
Important context:
FUTA is an employer-paid tax. It is not collected or deducted from employee wages.
May involve:
- FUTA-taxable wage information
- Payments excluded from FUTA where relevant
- State unemployment-tax information needed for the federal calculation
- Multi-state information where applicable
- Credit-reduction information where applicable
- Prior Form 940 information where useful
Payroll tax return preparation is not payroll processing
This service focuses on preparing Forms 941 and 940 from the employer's payroll and tax records. Routine payroll operations are not automatically included.
Payroll processing involves recurring wage calculations, payroll execution, employee payments and related operational administration.
Federal employment-tax deposits are separate from filing the return and may follow different timing requirements.
Not automatically included:
- • Calculating recurring payroll
- • Issuing employee payments or direct deposits
- • Operating the client's payroll platform
- • Registering payroll or withholding accounts
- • State payroll-tax filings
- • Payroll-tax deposit administration
These services require separate scope confirmation where available.
Information we may review
The exact information request depends on the return, payroll setup and filing period.
FORM 941
- •Payroll registers
- •Reported wages and tips where relevant
- •Federal income-tax withholding records
- •Social Security and Medicare tax information
- •Federal tax-deposit information where relevant
- •Prior Form 941 filings
- •Prior adjustments where relevant
FORM 940
- •Annual payroll information
- •FUTA-related wage information
- •Prior Form 940
- •State unemployment-tax information needed for the federal return
- •Multi-state information where relevant
- •Credit-reduction information where applicable
Payroll tax returns should agree with underlying payroll records
Return preparation may require comparing payroll registers, employment-tax deposit information, prior payroll tax returns and available wage-reporting totals.
If material differences are identified, additional reconciliation or correction work may require a separately agreed scope.
Where payroll liabilities or wage expense do not agree with the accounting records, bookkeeping review may also be needed.
What if a prior payroll tax return appears incorrect?
If a prior return does not agree with available payroll records, the issue can first be reviewed to determine whether separate correction work is needed.
The IRS provides correction procedures for employment-tax returns, including Form 941-X for applicable Form 941 adjustments. Any correction engagement is scoped separately.
Why work with An Noor for payroll tax return preparation?
Scope confirmed first
We identify the return, reporting period and engagement scope before requesting the full payroll record set.
Return preparation tied to source records
Payroll registers, tax information and prior filings are reviewed together where relevant to the return.
Clear service boundaries
Federal return preparation is kept separate from recurring payroll processing, state payroll filings and other payroll operations unless separately agreed.
Secure onboarding
Sensitive employee and payroll records are not collected through the public inquiry form.
How the engagement works
Confirm the return and period
We confirm whether the engagement concerns Form 941, Form 940 or both and identify the relevant reporting period.
Request the relevant payroll information
We provide an information request based on the return and employer's circumstances.
Prepare and review
We prepare the return from the available payroll and employment-tax records and identify material information gaps where necessary.
Authorize and complete the agreed filing process
The return moves through the agreed review, approval/signature and filing process.
Employer records remain important
Return preparation depends on complete and accurate employer-provided payroll information. The employer remains responsible for the accuracy of source records and for obligations outside the agreed engagement scope.
Secure Information Handling
Do not submit Social Security numbers, employee identity documents, payroll registers, bank information, wage files or other sensitive payroll records through the public inquiry form. Secure onboarding instructions are provided after the engagement scope is confirmed.
Frequently Asked Questions
Do you prepare Form 941?
Yes. Form 941 is generally used by applicable employers to report federal income tax withheld from employees and Social Security and Medicare taxes. We prepare this return within our confirmed engagement scope.
Do you prepare Form 940?
Yes. We prepare Form 940 for applicable employers to report annual Federal Unemployment Tax Act (FUTA) tax.
What is the difference between Form 941 and Form 940?
They report different employment-tax obligations. Form 941 generally reports federal income-tax withholding and Social Security and Medicare taxes, typically on a quarterly basis. Form 940 reports annual FUTA tax.
Does every employer file Form 941 every quarter?
No. Form 941 is generally a quarterly employment-tax return, but IRS rules provide exceptions for certain employers and filing situations. The required federal payroll return should be confirmed based on the employer's circumstances.
Does every employer file Form 940?
No. Form 940 filing requirements depend on whether the employer is subject to FUTA under the applicable IRS rules. The filing requirement should be confirmed for the relevant tax year and employer circumstances.
Is FUTA deducted from employee wages?
No. FUTA is paid by the employer and is not collected or deducted from employee wages.
Is payroll tax return preparation the same as payroll processing?
No. Return preparation focuses on preparing Form 941 and Form 940 from the employer's payroll and tax records. Payroll processing involves recurring wage calculations, payroll execution, and related operational administration, which requires separate scope confirmation.
What if a prior payroll tax return appears incorrect?
If a prior return does not agree with available payroll records, the issue can first be reviewed to determine whether separate correction work is needed. The IRS provides correction procedures for employment-tax returns, including Form 941-X. Any correction engagement is scoped separately.
How should sensitive payroll records be submitted?
Do not submit sensitive records (like Social Security numbers or payroll registers) through our website form. Secure onboarding instructions are provided after we confirm the scope of your engagement.
Need help preparing Form 941 or Form 940?
Tell us which federal payroll tax return you need help with and the reporting period involved. We will review the scope and explain the next step.