Karen Kluster opened Lube and Wash on January 2, 20--. The business is subject to FICA taxes. At the end of the first quarter of 20--, Kluster, as president of the company, must file Form 941, Employer's Quarterly Federal Tax Return.

Employer's address:	234 OAK, AUSTIN, TX 78711-0234
Employer's ID number:	00-0005874
Phone number:	(512) 5551111
Date filed:	April 30, 20--

Each employee is paid semimonthly on the 15th and last day of each month. Shown below is the payroll information for the first quarter of 20--. All pay periods were the same.

PAYROLL INFORMATION FOR JANUARYMARCH

Federal

Quarterly

OASDI

Income

Total

Employee

SSN

Wage

Tax

HI Tax

Tax

Deductions

Net Pay

Paul Purson

000-00-7233

$4,550.00

$282.10

$65.98

$378.00

$726.08

$3,823.92

Matt Dirkson

000-00-8451

8,010.00

496.62

116.15

957.00

1,569.77

6,440.23

Joan Howard

000-00-3668

8,600.00

533.20

124.70

1,070.00

1,727.90

6,872.10

Dorrie Smith

000-00-6527

10,055.00

623.41

145.80

1,145.00

1,914.21

8,140.79

Totals

$31,215.00

$1,935.33

$452.63

$3,550.00

$5,937.96

$25,277.04

Employer's FICA taxes	$1,935.33		$452.62
for the quarter	OASDI		HI

The total taxes per payday are:

Employees' FICA TaxOASDI	$322.56
Employer's FICA TaxOASDI	322.56
Employees' FICA TaxHI	75.44
Employer's FICA TaxHI	75.44
Employees' FIT	591.67
Total	$1,387.67	6 deposits = $8,326.02 for the quarter

None of the employees reported tips during the quarter.

Using Form 941 below, prepare the return on the basis of the information shown above.

1. Name (not your trade name)	Employer identification number (EIN)
   KAREN KLUSTER	00-0005874

   Part 2:

   Tell us about your deposit schedule and tax liability for this quarter.

   If you are unsure about whether you are a monthly schedule depositor or a semiweekly schedule depositor, see section 11 of Pub. 15.
   16 Check one:
   a.	Line 12 on this return is less than $2,500 or line 12 on the return for the prior quarter was less than $2,500, and you didn't incur a $100,000 next-day deposit obligation during the current quarter. If line 12 for the prior quarter was less than $2,500 but line 12 on this return is $100,000 or more, you must provide a record of your federal tax liability. If you are a monthly schedule depositor, complete the deposit schedule below; if you are a semiweekly schedule depositor, attach Schedule B (Form 941). Go to Part 3.

Form 941 for 20--: (Rev. January 2019) Employer's QUARTERLY Federal Tax Return Department of the Treasury - Internal Revenue Service OMB No. 1545-0029 00-0005879| Report for this Quarter of 20-- (Select one.) Employer identification number (EIN) Name (not your trade name) KAREN KLUSTER Trade name (if any) LUBE AND WASH Address Number Street Suite or room number AUSTIN TX 78711-0234 City State ZIP code Go to www.irs.gov/Form941 for instructions and the latest information. 234 OAK] UND Foreign country name Foreign province/county Foreign postal code Read the separate instructions before you complete Form 941. Type of print within the boxes. Part 1: Answer these questions for this quarter. 1 Number of employees who received wages, tips, or other compensation for the pay period including: Mar. 12 (Quarter 1), June 12 (Quarter 2), Sept. 12 (Quarter 3), or Dec. 12 (Quarter 4) Wages, tips, and other compensation ...... .. . . . . Check and go to line 6. Federal income tax withheld from wages, tips, and other compensation . . . . If no wages, tips, and other compensation are subject to social security or Medicare ta Column 1 Taxable social security x 0.124 wages ..... Taxable social security tips. x 0.124 Column 2 x 0.029 Taxable Medicare wages & tips .. 5d Taxable wages & tips subject x 0.009 to 5e Additional Medicare Tax withholding Add Column 2 from lines 5a, 5b, 5c, and 5d. 5e ............ Section 3121(9) Notice and Demand-Tax due on unreported tips 5f (see instructions) ............. - Total taxes before adjustments. Add lines 3, 5e, and 5f ... Current quarter's adjustment for fractions of cents .... Current quarter's adjustment for sick pay . Current quarter's adjustments for tips and group-term life insurance ........... Total taxes after adjustments. Combine lines 6 through 9. 10...... Qualified small business payroll tax credit for increasing research 11 activities. Attach Form 8974 Total taxes after adjustments and credits. Subtract line 11 from line 12 10 Total deposits for this quarter, including overpayment applied 13 from a prior quarter and overpayments applied from Form 941-X, 13 941-X (PR), 944-X, or 944-X (SP) filed in the current quarter .. Balance due. If line 12 is more than line 13, enter the difference and 14 see instructions .... Overpayment. If line 13 is more than line 12, enter the difference 15 one: Apply to next return. Send a refund. You MUST complete both pages of Form 941 and SIGN it. For Privacy Act and Paperwork Reduction Act Notice, see the back of Cat. No. the Payment Voucher. 170017 Check Next - Form 941 (Rev. 1- 2018) 17 ..... b. You were a monthly schedule depositor for the entire quarter. Enter your tax liability for each month and total liability for the quarter, then go to Part 3. Tax liability: Month 1 Month 2 Month 3 Total liability for quarter Total must equal line 12. c. You were a semiweekly schedule depositor for any part of this quarter. Complete Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors, and attach it to Form 941. Part 3: Tell us about your business. If a question does NOT apply to your business, leave it blank. If your business has closed or you stopped paying wages ..., . . . . . . . Check here, and enter the final date you paid wages If you are a seasonal employer and you don't have to file a return for every quarter of the year.. 18 ............. Check here. Part 4: May we speak with your third-party designee? Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? See the instructions for details. Designee's name and phone number Select a 5-digit Personal Identification Number (PIN) to use when talking to the IRS Part 5: Sign here. You MUST complete both pages of Form 941 and SIGN it. Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is trte, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Print your Karen Kluster Sign your name here Karen Kluster name here Print your President title here Date 4/30/-- Best daytime phone 512-555-1111 Paid Preparer Use Only Check if you are self-employed .... Preparer's name PTIN Preparer's signature Date Firm's name (or yours if self-employed) EIN Address Phone City ZIP code Form 941 (Rev. 1-2019) Page 2 Source: Internal Revenue Service Form 941 for 20--: (Rev. January 2019) Employer's QUARTERLY Federal Tax Return Department of the Treasury - Internal Revenue Service OMB No. 1545-0029 00-0005879| Report for this Quarter of 20-- (Select one.) Employer identification number (EIN) Name (not your trade name) KAREN KLUSTER Trade name (if any) LUBE AND WASH Address Number Street Suite or room number AUSTIN TX 78711-0234 City State ZIP code Go to www.irs.gov/Form941 for instructions and the latest information. 234 OAK] UND Foreign country name Foreign province/county Foreign postal code Read the separate instructions before you complete Form 941. Type of print within the boxes. Part 1: Answer these questions for this quarter. 1 Number of employees who received wages, tips, or other compensation for the pay period including: Mar. 12 (Quarter 1), June 12 (Quarter 2), Sept. 12 (Quarter 3), or Dec. 12 (Quarter 4) Wages, tips, and other compensation ...... .. . . . . Check and go to line 6. Federal income tax withheld from wages, tips, and other compensation . . . . If no wages, tips, and other compensation are subject to social security or Medicare ta Column 1 Taxable social security x 0.124 wages ..... Taxable social security tips. x 0.124 Column 2 x 0.029 Taxable Medicare wages & tips .. 5d Taxable wages & tips subject x 0.009 to 5e Additional Medicare Tax withholding Add Column 2 from lines 5a, 5b, 5c, and 5d. 5e ............ Section 3121(9) Notice and Demand-Tax due on unreported tips 5f (see instructions) ............. - Total taxes before adjustments. Add lines 3, 5e, and 5f ... Current quarter's adjustment for fractions of cents .... Current quarter's adjustment for sick pay . Current quarter's adjustments for tips and group-term life insurance ........... Total taxes after adjustments. Combine lines 6 through 9. 10...... Qualified small business payroll tax credit for increasing research 11 activities. Attach Form 8974 Total taxes after adjustments and credits. Subtract line 11 from line 12 10 Total deposits for this quarter, including overpayment applied 13 from a prior quarter and overpayments applied from Form 941-X, 13 941-X (PR), 944-X, or 944-X (SP) filed in the current quarter .. Balance due. If line 12 is more than line 13, enter the difference and 14 see instructions .... Overpayment. If line 13 is more than line 12, enter the difference 15 one: Apply to next return. Send a refund. You MUST complete both pages of Form 941 and SIGN it. For Privacy Act and Paperwork Reduction Act Notice, see the back of Cat. No. the Payment Voucher. 170017 Check Next - Form 941 (Rev. 1- 2018) 17 ..... b. You were a monthly schedule depositor for the entire quarter. Enter your tax liability for each month and total liability for the quarter, then go to Part 3. Tax liability: Month 1 Month 2 Month 3 Total liability for quarter Total must equal line 12. c. You were a semiweekly schedule depositor for any part of this quarter. Complete Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors, and attach it to Form 941. Part 3: Tell us about your business. If a question does NOT apply to your business, leave it blank. If your business has closed or you stopped paying wages ..., . . . . . . . Check here, and enter the final date you paid wages If you are a seasonal employer and you don't have to file a return for every quarter of the year.. 18 ............. Check here. Part 4: May we speak with your third-party designee? Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? See the instructions for details. Designee's name and phone number Select a 5-digit Personal Identification Number (PIN) to use when talking to the IRS Part 5: Sign here. You MUST complete both pages of Form 941 and SIGN it. Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is trte, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Print your Karen Kluster Sign your name here Karen Kluster name here Print your President title here Date 4/30/-- Best daytime phone 512-555-1111 Paid Preparer Use Only Check if you are self-employed .... Preparer's name PTIN Preparer's signature Date Firm's name (or yours if self-employed) EIN Address Phone City ZIP code Form 941 (Rev. 1-2019) Page 2 Source: Internal Revenue Service