Instructions for Form 941›(Rev. March 2026)›General Instructions:

Adjustment of Tax on Tips

Instruction 941 — Instructions for Form 941, Employer's QUARTERLY Federal Tax Return · 2026-10-03 edition · updated 2026-10-04 · United States

If, by the 10th of the month after the month you received an employee’s report on tips, you don’t have enough employee funds available to withhold the employee share of social security and Medicare taxes, you no longer have to collect it. Report the entire amount of these tips on line 5b (Taxable social security tips), line 5c (Taxable Medicare wages and tips), and, if the withholding threshold is met, line 5d (Taxable wages and tips subject to Additional Medicare Tax withholding). Include as a negative adjustment on line 9 the total uncollected employee share of the social security and Medicare taxes.

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▸Contents — Instruction 941 — Instructions for Form 941, Employer's QUARTERLY Federal Tax Return

Instruction 941 — Instructions for Form 941, Employer's QUARTERLY Federal Tax Return

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