Will I have to file and pay form 941 if no employees?

Question

I am in the process of opening a small business and am trying to figure out the federal taxes. From my research, it seems like you have to file a 941 if you pay wages to an employee, or are collecting a paycheck yourself. I am a little confused about this. As a Sole proprietor, would my  income from the business be considered a wage? 
Or would that only apply if I were on the payroll as an employee and receiving actual paychecks?

Max Hoopla · Accepted Answer

If you are a corporation the officers are statutory employees and are required to be paid a reasonable salary.  If you are a sole proprietor you don't pay yourself wages.  If you have employees intermittently you would need to file a zero tax return for quarters where  you had no employees just to make the IRS computer happy.

Judy · Answer

No, as a sole proprietor you don't get a paycheck.  There is no withholding and nothing needing a 941.

tro · Answer

as a sole proprietor you DO NOT pay yourself a salary, the bottom line of your Sch C is your 'pay' on which you will pay your own self employment tax
if you hire and pay employees you will get an EIN from IRS and report the wages you pay them quarterly, with a W-2 at the end of the year, you will file and pay the taxes you withhold from their pay and your share as an employer each no less than each quarter of the year

Will I have to file and pay form 941 if no employees?

3 Answers