What is Form 941 used for in payroll accounting?

Form 941 is used by employers to report the amount of income taxes, Social Security tax, and Medicare tax withheld from employees' wages. It serves as a quarterly tax return that helps the IRS track the taxes owed and paid on behalf of the employees. Employers are required to file this form every quarter, detailing the number of employees, wages paid, and taxes withheld, ensuring that they meet their obligations for federal payroll tax withholdings.

The other options, while related to payroll accounting, do not correctly describe the primary purpose of Form 941. For example, reporting employee annual wages is typically done on Form W-2, which is issued at the end of the year to summarize an employee's wages and tax withholdings. Calculating overtime payments is part of payroll processing but does not pertain to a specific tax form like Form 941. Similarly, issuing employee benefit statements is generally related to providing information on benefits rather than the federal tax reporting that Form 941 addresses. Thus, option B accurately reflects the specific function and importance of Form 941 in payroll accounting.