Form 941 withholding question

[rahaparta]

Form 941 is being filed every quarter and I have a question on correct thinking of withholding on Line 3.

Assume for example a Line 2 wage 1000.00, Line 3 is Zero and Line 5e 153.00 which is 7.5%x2 or 76.50x2

Line 10 is also 153.00

The net pay deposit is 1000 minus 76.50 equals 923.50

If I also submit federal income tax payment on Line 3, let us assume 100, does that change the net pay deposit to 823.50 ?

I can use IRS EFTPS to pay directly using 1040ES and submit payments quarterly for the Line 3 amounts.

Is there any reason to use Line 3 and Form 941 for the personal federal income tax payment vs. using 1040ES payment ?

[SeattleCPA]

The math works the way you think.

Regarding paying FWH on the 941 vs 1040-ES, either way works fine.

Sometimes you can't pay enough federal income taxes on a 941 so that means you need to do 1040ES vouchers... and if you're going to do them anyway, maybe you just take care of all your federal income taxes in one place... on 1040ES vouchers. That's one issue.

Sometimes, too, it's nice to keep the tax liability shown on the 941 below the de minimis threshold ($2500) so you can not fiddle with EFTPS... and so that can impact your thinking on paying federal income taxes.

Example: We have cheap ebook we sell that describes a "quick and dirty" payroll system that works for many small time S corporations with a single employee. The "system" suggests you pay $16K a quarter (max) and then take out only SS and MC which means a $2448 tax deposit. Because the deposit is low, you don't have to do EFTPS... but then you need to deal with the federal income taxes on 1040ES vouchers.

P.S. The math and example forms are shown here: http://evergreensmallbusiness.com/quick-and-dirty-payroll-for-one-person-s-corps/

P.P.S. I've had professional experience with the IRS losing giant EFTPS payments.