Understanding The Relationship Between Quarterly IRS Tax Obligations And Cash Flow

It’s that time of year again, when businesses start preparing their quarterly 941 forms and figuring out their IRS tax obligations. While taxes may not be everyone’s favorite subject to discuss at the start of a new year, it is very important to understand the relationship between quarterly IRS tax obligations and the impact they have on cash flow.

Form 941 Tax Obligations

Form 941 allows businesses to figure out what they owe the IRS per quarter based on company size and earnings. The form is fairly straightforward and asks employers to list the number of people they employ, what they earn, and any taxes owed. After calculations, if your business has overpaid on taxes, that amount can be applied to the following quarter. (Click Here To Learn More)