Form 941 payroll taxes are mandatory federal taxes paid quarterly by employers based on wages paid to employees. These taxes fund critical Social Security, Medicare, and unemployment programs relied upon by millions of Americans. 

941 taxes apply to nearly all public and private sector employers, regardless of organization type or size, with just a small exception for some household employers. They tax wages paid to all employees – including hourly, salaried, part-time, full-time and even contracted workers legally classified as statutory employees.

The 941 tax responsibility is broad, encompassing both employer and employee contributions for Federal Insurance Contributions Act (FICA) taxes which include Social Security and Medicare. 941 also requires withholding federal income taxes due on employees’ wages each pay period.