Form 941 is the first of many new forms you’ll need to encounter. Getting ready to hire your first full-time employee includes more than payroll calculations and benefits estimations it comes with a new slew of tax and wage forms. If you own a recently started small business, you may have relied on contract work to build your foundation. In all situations, Form 941 is used solely to file taxes from W-2 employees-not 1099 contractors. The form is also used to pay the employer’s portion of FICA tax, which include both social security and Medicare. Employers use the form to report income taxes, social security tax, or Medicare tax withheld from employee paychecks.

For some transitioning small businesses, however, Form 941 represents a massive shift. Form 941 is a simple procedure with a lot of weight, and for many, this is an easy and routine process.