A Guide to Payroll Forms

What payroll tax forms do you need to know about?

Missing a payroll tax filing deadline or filing the wrong form can have expensive consequences.

“Payroll forms are how employers communicate with tax agencies like the IRS and state tax agencies. They are used to show that you have withheld the proper amount of taxes and Social Security/Medicare contributions from your employees’ paychecks,” said Samantha Reynolds, director of marketing and payroll expert at Helpside. 

The good news is the best payroll software can help you avoid them. 

Here are the payroll report forms you should keep on your radar:

1. Form 941

Source: IRS

Form 941, the Employer’s Quarterly Federal Tax Return, reports the number of employees you have, their wages and taxable tips and the federal income taxes you withheld. Social Security, Medicare taxes and sick pay are also documented here, along with any adjustments made. You must file this payroll tax form unless you have already submitted a final return, are a seasonal employer or employ farm or household workers. A payroll form should be filed quarterly.

Due dates for 2025: April 30, 2025; July 31, 2025; October 31, 2025; and February 2, 2026 

2. Form 944

Very small businesses sometimes use Form 944 instead of Form 941. This form is the Employer Annual Tax Return. The only businesses that qualify to use it are those with $1,000 or less in annual liabilities for Social Security, Medicare and federal income taxes. Additionally, you must have a written notification from the IRS permitting you to use this form instead of Form 941. This payroll tax form is submitted annually instead of quarterly, so if you’re qualified to use it, you should.

Due date: January 31 (every year)

3. Form 940

Form 940 is the Employer’s Annual Federal Unemployment Tax Return. This payroll tax form is used to report the federal unemployment tax or Federal Unemployment Tax Act (FUTA) tax. This tax funds unemployment compensation to employees who have recently lost their jobs. Your business must pay FUTA taxes if you paid at least $1,500 in wages in a quarter within the past two years. These taxes are paid quarterly but reported once per year.

Note: Employers in California, Connecticut, Illinois, New York and the United States Virgin Islands are subject to higher FUTA taxes due to credit reduction.

Due date: January 31 (every year)

4. Form W-2

Source: IRS

The W-2 is one of the best-known tax forms and should be given to each employee at the end of each year. It reports each employee’s annual compensation and all federal, state and other payroll tax withholdings. This form does not need to be filled out for independent contractor workers; you’ll fill out Form 1099 for them instead.

“Most of us are familiar with the classic “W-2”, which is used for every employee in the U.S. The “Wage and Tax Statement” form shows the employee’s pay and how much was withheld for federal and state taxes and contributions to Social Security, Medicare and FICA,” said Reynolds. 

Per the IRS, the Social Security wage base rate increased to $168,600 for the 2024 tax year and $176,100 for 2025.

Due date: January 31 (every year)

5. Form W-3

The W-3 is a condensed version of your W-2 forms. For example, one W-3 can represent 10 W-2s. This form is called the Transmittal of Wage and Tax Statements. It includes total earnings, FICA wages, federal income wages and the tax amount withheld. You do not need to give W-3s to your employees. Your W-3 should be sent to federal and state governments along with your W-2 forms.

Due date: January 31 (every year)

6. Form 1095-B

If you provide a health insurance plan for your employees that meets or exceeds what the Affordable Care Act (ACA) calls “minimum essential coverage,” file Form 1095-B. On it, you’ll note the type of health insurance, whether dependents are covered and the coverage period for the prior year. Your employees will use this form to prove they have qualifying health insurance that exempts them from paying a penalty when they file their tax returns. If your business has at least 50 full-time employees and is what the ACA calls an “applicable large employer,” fill out Form 1095-C instead.

Due date: January 31 (every year)

7. Form 1094-B

Form 1094-B is the Transmittal of Health Coverage Information Returns, which is similar to the W-3 in that it summarizes Form 1095-B with the number of forms you’re submitting. It also gives the IRS your name and phone number to contact you if it has questions about the forms. You don’t have to send Form 1094-B to employees; submit it to the IRS along with the 1095-B forms. If your business is classified as an “applicable large employer,” fill out Form 1094-C instead.

Due date: February 28 (every year)

8. Form I-9

Form I-9 must be included in your onboarding package for new hires. The form confirms employee eligibility within the U.S. Both U.S. citizens and noncitizens complete Form I-9 before receiving payment for their work. The employee attests authorization to work in the U.S. while providing documentation (like a birth certificate or driver’s license) to prove eligibility. Employers must review the documents and confirm that the papers appear genuine and are not falsified. The employer should keep Form I-9 on file in case of government review or if ICE serves your business with a Form I-9 audit.

The Department of Homeland Security’s U.S. Citizenship and Immigration Services (USCIS) states that the form must be submitted within three days of the employee’s hire date. For example, if the employee starts work on a Tuesday, the form must be submitted that Friday.

Please note: USCIS issued a new Form I-9 on August 1, 2023. The new form revised the section outline to make it easier to complete. The previous form can be used until October 31, 2023, after which employers may face noncompliance penalties.

Due date: Three days after the hire date

9. Form W-9

Source: IRS

Form W-9 is specifically for companies that hire independent contractors. If the company pays the independent contractor more than $600 in a tax year, the company must report those payments to the IRS using Form 1099-MISC. On Form W-9, the employer asks the contractor (or freelancer) for the tax filer’s name, address and tax identification number. Because the W-9 is not filed, the form has no specific due date. However, companies should request that the independent contractor complete the form before they are paid.

Due date: At the time contract work is ordered

10. Form 1099-MISC

Form 1099-MISC is used when you pay $600 or more to an individual or limited liability company. This includes attorney fees, awards, healthcare, royalties and rent. This does not include freelancers or contractors. There is a separate form for that.

The Foreign Account Tax Compliance Act (FATCA) filing requirement checkbox can now be found on Box 13. Boxes 13-17 from the 2021 version of the form have been renumbered as 14-18 to accommodate this change.

Due date: January 31 to the recipient, March 1 if filed by paper and March 31 if filed electronically (every year)

11. Form 1099-NEC 

Source: IRS

Beginning with the 2020 tax year, the 1099-NEC is a simplified way to report over $600 paid to a self-employed individual, freelancer or contractor who supplied services to your business. The 1099-NEC covers fees, benefits, commissions, prizes, awards and more for nonemployee-provided services.

From 2022 forward, the IRS released a continuous-use format version of Form 1099-NEC.

Due date: January 31 (every year)

12. Form W-4

Source: IRS

Form W-4 must be provided to all new hires. Employees receiving the form should complete it before or on the first day of their new job. Form W-4 provides the employer with personalized tax withholding information that aids in maintaining an accurate payroll. Holding a W-4 for each employee streamlines the W-2 form preparation.

“This is the “Employee’s Withholding Certificate” and does not need to be sent to any tax agencies,” said Reynolds.

Due date: February 15 (every year)

13. Form 8027

Form 8027 is not a standard form. It applies only to companies that employ more than 10 workers on a normal business day in industries where tipping is customary. Hospitality and food service companies are the most common industries that use Form 8027. It reports any tip income an employee received while working directly for the business. If the tip amounts are too low for the size of the business, the company may be required to pay out allocated tips. Form 8027 calculates this formula for any amounts due.

Due date: March 1 if filed by paper and March 31 if filed electronically (every year)

Tips to avoid payroll mistakes

There’s no shame in asking for help. If you’re unsure how to set up payroll for your employees or if you want to save yourself the trouble of navigating payroll regulations, sign up for a payroll service or hire an accountant. It’s better to pay for the service and have it done correctly than to pay fines for your mistakes. 

Here are four tips to help you avoid common payroll mistakes:

1. Pay attention to deadlines for tax payments and filing. Depending on your business, you may have payroll tax payments due annually or quarterly.
2. Don’t miscalculate overtime. Some states have their own overtime regulations. In those cases, the regulation that gives the employee higher pay prevails. Check your state’s labor laws beforehand to ensure you pay your employees fairly.
3. Classify employees correctly. Misclassifying employees as independent contractors (or vice versa) can lead to incorrect tax filings. “Be sure to classify workers correctly based on IRS guidelines. If you’re unsure, consult with a tax professional,” said Zaher Dehni, Enrolled Agent (EA) and CEO of Taxfully.
4. Set aside time for processing payroll. It’s important to allocate sufficient time to processing payroll. Late pay leads to unhappy workers and rushing can cause costly mistakes. If you overpay or underpay your workers, you’ll have to take time to make corrections and may also face fines.
5. Invest in your payroll: It may be tempting to cut corners with your payroll process, especially if you’re a startup or newer business on a budget. However, doing so can cost you. “This is not an area of your business to have any ego about; use a professional to set up an automated system and teach you how to use it if you don’t decide to completely outsource this process entirely. Legal and financial consequences to your employees, your business and its reputation as an employer are too dire to take risks by incorrectly filing payroll forms,” explained Reynolds. 

Anna Baluch contributed to this article.