Social security wage base for 2007.   Do not withhold social security tax after an employee reaches $97,500 in social security wages. (There is no limit on the amount of wages subject to Medicare tax.)

Reporting negative amounts.   When reporting a negative amount as a tax adjustment on line 7, use a “minus” sign instead of parentheses. Doing so enhances the accuracy of our scanning software. For example, report “-10.59” instead of “(10.59).” However, if your software only allows for parentheses in reporting negative amounts, you may use them.

Annual employment tax filing for small employers.   Certain small employers will qualify to file Form 944, Employer's ANNUAL Federal Tax Return, rather than Form 941, Employer's QUARTERLY Federal Tax Return, to report their employment taxes. The IRS will notify those employers who will qualify to file Form 944 in February of each year. For more information, see the Instructions for Form 944.

Credit card payments.   Employers can pay the balance due shown on Form 941 by credit card. However, do not use a credit card to make federal tax deposits. For more information on paying your taxes with a credit card, visit the IRS website at www.irs.gov and type “e-pay” in the Search box.

Correcting Form 941.   If you discover an error on a previously filed Form 941, make the correction using Form 941 for the quarter in which you discovered the error and attach Form 941c, Supporting Statement to Correct Information. For example, in March 2007, you discover you underreported $10,000 in social security and Medicare wages on your fourth quarter 2006 Form 941. Correct the error by showing $1,530 (15.3% × $10,000) on line 7e of your 2007 first quarter Form 941 and attaching a completed Form 941c. Be sure to include the $1,530 in any required tax deposit.

Electronic filing and payment.   Now, more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. Whether you rely on a tax professional or handle your own taxes, IRS offers you convenient programs to make filing and paying easier. Spend less time and worry on taxes and more time running your business. Use e-file and Electronic Federal Tax Payment System (EFTPS) to your benefit.

941TeleFile discontinued.   You can no longer file your employment tax return by telephone using 941TeleFile. The IRS encourages you to file your Form 941 using other convenient and easy IRS e-file options. Please visit us at www.irs.gov and click on the e-file logo located in the lower-left corner. File your “Zero Wage” Forms 941 using IRS e-file, if possible. See also When Must You File? on page 2.

Where can you get telephone help?   You can call the IRS toll free at 1-800-829-4933 on Monday through Friday from 7 a.m. to 10 p.m. local time (Alaska and Hawaii follow Pacific time) to order tax deposit coupons (Form 8109) and for answers to your questions about completing Form 941, tax deposit rules, or obtaining an employer identification number (EIN).

Photographs of missing children.   The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in instructions on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.