E-filing your Form 941 for the Fourth Quarter of 2020


Year-end filing is at the forefront of every employer’s mind right now. In addition to the deadlines for Form 1099-NEC and Form W-2, employers must also complete their Employer’s Quarterly Federal Tax Return, Form 941. 

The fourth quarter deadline to file form 941 with the IRS is February 1, 2021. 

Who needs to file Form 941?

Any employer that paid employees wages that were subject to federal income taxes, Medicare taxes, and social security taxes. 

Unless you have approval from the IRS to file the Employer’s Annual Employment Tax Return, you should file quarterly. 

If you are a seasonal employer that has no taxes to report for the quarter, you aren’t required to file. 

Please see the full IRS 941 instructions here for additional information. 

What if my business has closed? 

Even if your business is no longer operating and you have not paid any wages for the last quarter, you will still need to file a Form 941 return. This will be your final return. You can indicate this on Line 17 of the form and indicate the last date that you paid any wages to employees.

In addition to your last return, you should attach a statement identifying the individual who is responsible for your business’ payroll records, and the address where these records will be held.  When you file with TaxBandits, we will handle this for you! Just provide the name and address of your record keeper. 

Have you heard of the TaxBandits Zero Filing Feature, it’s a great time-saver? If you don’t have any taxes to report, but must file Form 941, select this option when beginning your form. You will be able to skip through the form flow and our application will generate zeroes where they are required. Then, all you will need to do is review the form. 

Are there any new changes for the fourth quarter?

Here is the good news, no! While we saw big, bold changes to Form 941 for the second quarter of 2020 due to COVID-19 and a few more minor changes for the third quarter, 941 for the fourth quarter doesn’t contain any surprises. 

You will still need to report any refundable and nonrefundable credits due to COVID-19 and any deferments of social security taxes, like in previous quarters. Form 941 is exactly the same as the third quarter version for 2020. 

How do I e-file Form 941 with TaxBandits? 

With the backlog of paper tax forms at the IRS, e-filing is absolutely the best option. By e-filing, you will receive an instant notification that the IRS has actually received your form. The IRS is processing electronically filed forms at a much faster rate than paper forms. 

At TaxBandits, our goal is to simplify the process, filing your tax returns doesn’t need to take up hours of your time. Follow these simple steps to complete your Form 941

Sign in to your TaxBandits account or create one for free to get started. Then select Form 941. The TaxBandits application will begin to lead you through the form flow, providing prompts, and helpful information along the way!

Be sure to take advantage of the following features. You are able to complete Worksheet 1 to help you determine your refundable and non-refundable tax credits, it is built into the 941 filing process. 

When you complete Form 941, it is time to add your signature, you have two simple options for this. You can simply enter your Online Signature PIN, which is assigned by the IRS. If you don’t have an Online Signature PIN, you can use Form 8453-EMP. 

Don’t forget to apply for an Online Signature PIN before next quarter, this is a free service provided by TaxBandits!

Are you filing Form 941 on behalf of your clients?

If you are a tax professional or CPA filing on behalf of your clients, TaxBandits has features designed to make bulk filing fast and hassle-free. 

You can upload and file multiple 941s in one go, check out this video to learn how. 

Ready to start filing? Don’t forget to stock up on your prepaid credits, it’s not too late to lock in your best pricing for year-end filing!

Form 941

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