Article

9 min read

24 Business Tax Forms Every US Employer Should Know

Q: What are 940 and 941 forms?

Form 940 is used to report and pay [federal unemployment tax (FUTA)](https://www.deel.com/glossary/federal-unemployment-tax-act/) annually. This tax helps fund unemployment compensation programs. Form 941 is a quarterly filing used to report federal income tax, Social Security, and Medicare taxes withheld from employees’ wages, including those reported on Form W-2. It also reports the employer’s share of employment tax liabilities. These forms are essential for all employers—including small business owners and sole proprietors with payroll—who must pay taxes on income paid to staff.

Q: What is a Form 1065 for?

[Form 1065](https://www.irs.gov/pub/irs-pdf/f1065sk1.pdf) is the tax return that partnerships and some LLCs use to report income, losses, and other financial data for the tax year. It does not itself calculate tax owed but serves as an informational return. The income is passed through to each partner or member, who then reports their share on Schedule K-1 and includes it with their personal Form 1040 filing. This form is often used by small businesses, especially those not structured as corporations, to meet their tax filing and reporting obligations for calendar years. Note: Unlike corporations, partnerships and sole proprietorships do not pay taxes directly as a business entity. Instead, owners or members elect to pay taxes on income individually.

US payroll

Author

Shannon Ongaro

Last Update

May 01, 2025

Published

May 01, 2025

Forms for employee income reporting

Forms for contractor and non-employee compensation

Forms for business entity income reporting

Forms for employment eligibility and classification

Forms for employer payroll taxes

Forms for retirement and benefit plans

Forms for global and expat employees

OSHA and workplace safety reporting

Simplify compliance with Deel Payroll

Key takeaways

Understanding the right business tax forms—from Form W-2 to Form 1099-NEC—is essential to meeting your company's federal income tax and employment tax obligations.
The forms your business must file depend on factors like independent contractor use, business entity structure (LLC, partnership, or corporation), and whether you operate on calendar years or a fiscal tax year.
Deel US Payroll and PEO services help small business owners and sole proprietors automatically generate, file, and stay compliant with every required form

Understanding which tax forms apply to your workforce is essential for staying compliant with federal and state laws. Whether you're hiring full-time employees, independent contractors, or global talent, US employers must complete and file the right forms at the right time.

At Deel, we have 350+ in-house payroll and legal experts who support our clients and processes. This specialized knowledge, combined with our automated compliance, makes managing US business tax forms significantly easier for business owners, HR professionals, and payroll managers.

While the exact tax forms your business must file will depend on your business structure, workforce, and location, this guide includes some of the most important tax forms for employers in the US. You’ll get a clear understanding of their purpose and in-depth resources to help you meet your obligations and increase compliance.

Disclaimer: This content is for informational purposes only and should not be considered legal or tax advice. Always consult payroll specialists or local legal counsel to ensure payroll compliance in your region.

Forms for employee income reporting

These forms are used to report wages, withholdings, and other compensation to employees and the IRS.

Form W-2: Reports annual wages and tax withholdings for employees. Must be filed with the Social Security Administration and sent to employees each January.
Form W-3: A summary form submitted alongside W-2s, used to transmit wage data to the SSA.
Form W-4: Completed by employees to determine federal income tax withholding.
Form W-5: An outdated form once used for the Earned Income Credit (included for historical reference).

Forms for contractor and non-employee compensation

Use these forms when working with independent contractors or other non-employees.

Form 1099-NEC: Reports payments of $600 USD or more to non-employees, such as freelancers or contractors.
Form 1099-MISC: Used for reporting miscellaneous income, such as rent or prizes.
Form 1096: A transmittal form for paper-submitted 1099s sent to the IRS.
Form W-9: Completed by contractors to provide their taxpayer identification number (TIN).
Form W-8BEN: Used by non-US persons to certify foreign status and claim tax treaty benefits.
Form 1040: Used by US taxpayers who are filing self-employed income (if they made a profit of over $400).

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Forms for business entity income reporting

The tax forms your business must file depend on how your business entity is structured—whether it's a sole proprietorship, partnership, S corporation, or C corporation. These forms help you report income, calculate liabilities, and determine how the business or its owners pay taxes on income.

Form 1120: Filed by C corporations to report business income, losses, and tax liabilities for their corporation income tax return.
Form 1120S: Used by S corporations to report income and pass through profits or losses to shareholders via Schedule K-1.
Form 1065: Required for partnerships and multi-member LLCs to report annual business income; each partner receives a Schedule K-1 to include in their Form 1040 filing.
Form 2553: Filed by eligible corporations that want to be taxed as an S corporation instead of a C corporation, changing how they elect to pay taxes on income.

Forms for employment eligibility and classification

These forms verify employee eligibility and help determine proper worker classification.

Form I-9: Confirms identity and work authorization for new hires in the US.
Form SS-8: Filed with the IRS to request a determination on whether a worker is an employee or independent contractor.

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Forms for employer payroll taxes

Employers must file these forms to report and pay employment-related taxes.

Form 940: Used to report and pay annual federal unemployment tax (FUTA), separate from income tax withholdings.
Form 941: Filed quarterly to report income taxes, Social Security, and Medicare withheld from employees' paychecks.
Form 944: An alternative to Form 941, this is an annual employment tax return for very small employers with low payroll tax liability.
Form 720: Used to report excise taxes, including the Patient-Centered Outcomes Research Institute (PCORI) fee for certain health plans.

Forms for retirement and benefit plans

Employers offering retirement or fringe benefits may need to complete these forms.

Form 5500: Reports information about employee benefit plans to the Department of Labor.
Form 5330: Used to report excise taxes on prohibited retirement plan transactions.

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Forms for global and expat employees

If you employ US citizens abroad or foreign nationals in the US, these forms may apply.

Form 673: Allows eligible US employees working overseas to claim the Foreign Earned Income Exclusion and reduce tax withholding.

OSHA and workplace safety reporting

This form is required for reporting workplace injuries and illnesses.

Form 300A: Summarizes job-related injuries and illnesses for OSHA reporting.

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Simplify compliance with Deel Payroll

Filing the right tax forms—like Form W-2, Form 941, and Form 1099-NEC—on time is critical for staying compliant with IRS rules. But for small business owners, managing these across different worker types and tax years can quickly become overwhelming.

Deel handles every step for you:

Auto-generates the correct forms for employees and independent contractors
Ensures accurate federal income tax calculations and filings
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Local filing with authorities
Keeps you compliant with changing employment tax requirements

Run compliant US payroll with Deel—fast, accurate, and audit-ready. Learn more about Deel US Payroll and Deel PEO for additional HR and compliance support.

FAQs

Is an LLC a 1120 or 1120S?

It depends on how the business entity is taxed. By default, single-member LLCs are treated as sole proprietorships and report income on Form 1040 Schedule C (Profit or Loss from Business). Multi-member LLCs file a Form 1065, and each member receives a Schedule K-1 to include in their personal return.

However, LLCs can elect to pay taxes on income as a corporation. In that case, the business must file Form 1120 (the corporation income tax return) or Form 1120S if it has elected to be taxed as an S corporation. Choosing the right form depends on your structure, tax obligations, and long-term growth plans.

What are 940 and 941 forms?

Form 940 is used to report and pay federal unemployment tax (FUTA) annually. This tax helps fund unemployment compensation programs.

Form 941 is a quarterly filing used to report federal income tax, Social Security, and Medicare taxes withheld from employees’ wages, including those reported on Form W-2. It also reports the employer’s share of employment tax liabilities. These forms are essential for all employers—including small business owners and sole proprietors with payroll—who must pay taxes on income paid to staff.

What is a Form 1065 for?

Form 1065 is the tax return that partnerships and some LLCs use to report income, losses, and other financial data for the tax year. It does not itself calculate tax owed but serves as an informational return.

The income is passed through to each partner or member, who then reports their share on Schedule K-1 and includes it with their personal Form 1040 filing. This form is often used by small businesses, especially those not structured as corporations, to meet their tax filing and reporting obligations for calendar years.

Note: Unlike corporations, partnerships and sole proprietorships do not pay taxes directly as a business entity. Instead, owners or members elect to pay taxes on income individually.

About the author

Shannon Ongaro is a content marketing manager and trained journalist with over a decade of experience producing content that supports franchisees, small businesses, and global enterprises. Over the years, she’s covered topics such as payroll, HR tech, workplace culture, and more. At Deel, Shannon specializes in thought leadership and global payroll content.

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