What must an employer file if they have a payroll tax liability?

When an employer has a payroll tax liability, they are required to file Form 941, which is the Employer's Quarterly Federal Tax Return. This form is specifically designed for businesses to report the income wages paid to employees, along with the amount of federal income tax withheld from those wages, and the employer's and employee's share of Social Security and Medicare taxes.

Filing Form 941 is crucial because it ensures that the tax liabilities are reported accurately to the IRS at regular intervals, allowing the government to track the taxes owed based on the payroll. Employers are typically required to file this form on a quarterly basis, which is essential for maintaining compliance with federal tax regulations and preventing penalties.

In contrast, the other options do not fulfill the requirement for reporting payroll tax liabilities. Form 944 is intended for smaller employers with an annual employment tax liability that qualifies them to file only once a year, while state payroll forms pertain to state-level requirements and do not substitute for federal filings. Not filing anything when there is a tax liability would lead to significant issues, including penalties and interest on unpaid taxes.