 Hello, in this lecture, we will define Form 941. According to fundamental accounting principles, Wilde 22nd edition, the definition of Form 941 is, IRS Form filed to report FICA taxes owed and remitted. When we think about Form 941, we're thinking about payroll taxes, a payroll tax form, a payroll tax reporting form. FICA is going to be the law that governs social security and Medicare. The Form 941 is going to show what the liability is in relation to the social security, the Medicare, as well as the federal income tax that has been withheld, not for the corporation on corporate wages or corporate net income, that is, but for the withholdings from employees for their federal income tax withholding. The form is going to look like this. We've got the information up top. It's an information form reporting form that's done quarterly here, each quarter. This form needs to be reported. It's going to basically show the wages that have been earned by all the employees for that time period. It's going to show the amount of federal income tax withholding from all the employees. Only way to get that is just basically to add up what those withholdings are because of the complication in terms of the progressive tax system. Then it's going to calculate the social security and Medicare taxes, which is going to be a different number in terms of total wages generally because there could be a different number because there could be a cap in terms of social security. But once we have that number, we can actually calculate the liability very easily because it's a flat tax. So we'll calculate the liability on that. And in essence, we're going to then compare that to what the payments have been made throughout the time period. So like a form 1040, when we report our own individual income taxes, we've already withheld all the taxes by the time we report the 1040 at the end of the year. It's more of just an information form in that we're saying here's our tax liability based on the income that we now know. Here's the payments that we have already made for the year. Typically we get a refund in terms of the form 1040 if we're a W2 employee. That's how the system's typically set up. In terms of the 941, we can actually be much more exact because of the fact that social security Medicare are flat taxes. So we're saying to the IRS, here's the amount of liability based on what we know. And we should have paid pretty much that exact same amount, therefore not owing anything. However, if we do owe something, then we would report what we do owe or what has been overpaid at this point on the form. Also important to note when we think about social security and Medicare, there's an employee portion and an employer portion. The employee portion is gonna be pulled out of the wages. It's gonna be reported on form W2. This report's gonna report both the employee portion and the employer portion because the employer is responsible for actually making the check payments to or electronic payments to the IRS. So half of the payments that they're making are actually being pulled from the employee's wages. The other half are being pulled from the employer's checking account, but the actual money is going from the employer to the IRS and is being reported on form 941. The end.