Schedule B (Form 941) Instructions

You must file Schedule B (Form 941) if you are a semiweekly schedule depositor. This includes:

• Employers who reported more than $50,000 in employment taxes during the lookback period
• Employers who accumulated $100,000 or more in tax liability on any single day

Lookback Period: The lookback period is the 12-month period ending June 30 of the prior year. For example:

• For calendar year 2025, the lookback period is July 1, 2023 through June 30, 2024
• If you reported more than $50,000 in taxes during this period, you are a semiweekly depositor for 2025

Semiweekly depositors must deposit employment taxes based on when they pay wages:

Next-Day Deposit Rule: If you accumulate $100,000 or more in taxes on any day, you must deposit by the next business day. This applies regardless of your normal deposit schedule.

Schedule B has a grid format where you enter your tax liability for each day of the quarter:

1. Enter your EIN and name at the top of the schedule
2. Check the correct quarter (Q1, Q2, Q3, or Q4)
3. For each month, enter your tax liability on the day you paid wages:
   • Days 1-31 are listed in columns
   • Enter the amount of taxes that became due on each payday
   • Leave blank any days you did not pay wages
4. Total each month in the "Total liability for month" row
5. Total the quarter in Line 18 (Total liability for the quarter)

Important: The total on Line 18 must equal Line 12 of Form 941. If these amounts differ, check your calculations before filing.

Schedule B reports the following employment taxes:

• Federal income tax withheld from employee wages
• Employee share of Social Security tax (6.2% up to wage base)
• Employer share of Social Security tax (6.2% up to wage base)
• Employee share of Medicare tax (1.45%, plus 0.9% additional Medicare tax on wages over $200,000)
• Employer share of Medicare tax (1.45%)

Report the total tax liability (both employee and employer shares) on the day you paid the wages, not the day you made the deposit.

Avoid these common errors when completing Schedule B:

• Reporting deposits instead of liabilities: Report when taxes became due (payday), not when you made deposits
• Mismatch with Form 941: Line 18 total must equal Form 941 Line 12
• Wrong quarter checked: Make sure you check the correct quarter box
• Missing days: If you have multiple paydays in a quarter, report each one
• Rounding errors: Report exact amounts; don't round to whole dollars
• Omitting bonuses: Include tax liability for bonuses and supplemental wages

The IRS uses Schedule B to verify deposit timing. Problems can result in:

• Failure to Deposit (FTD) penalty: 2% to 15% of underpaid deposits depending on lateness
• IRS notices: CP2100 or similar notices requesting corrections
• Averaging penalty: If you don't file Schedule B, the IRS may assume liability was spread evenly and assess penalties accordingly

Tip: If you receive a penalty notice and believe your deposits were timely, use Schedule B as evidence when requesting abatement.

If you reported $50,000 or less in employment taxes during the lookback period, you are a monthly depositor and do not need to file Schedule B.

Monthly depositors deposit by the 15th of the following month and report their liability in the Form 941 boxes (not on Schedule B).

Schedule B is filed as an attachment to Form 941 and follows the same quarterly deadlines: