Future Business Leaders of America (FBLA) Accounting Practice Test

What does Form 941 represent?

1. An employee's annual summary of earnings

2. The employer's quarterly federal tax return

3. A written order to withdraw cash from a bank account

4. The steps taken to protect cash and assets

The correct answer is: The employer's quarterly federal tax return

Form 941 is a critical document used by employers in the United States, representing the employer's quarterly federal tax return. This form is filed quarterly and provides the Internal Revenue Service (IRS) with information about the income taxes, Social Security taxes, and Medicare taxes withheld from employees' paychecks. Additionally, it reports the employer's portion of these taxes. Employers use Form 941 to calculate their liabilities for the quarter and confirm that the correct amounts have been withheld and sent to the IRS. By requiring this form, the IRS ensures that employers are compliant with federal tax withholding requirements throughout the year, rather than just at year-end, allowing for more timely oversight and tax collection. In contrast, the other options represent different concepts unrelated to this quarterly filing. An employee's annual summary of earnings pertains to Form W-2, while a written order to withdraw cash from a bank account is related to checks or withdrawal slips. Steps taken to protect cash and assets refer to internal control procedures, which are part of overall financial governance but do not specifically relate to tax reporting.