Form 941-X Made Simple: Fixing Mistakes on Your Quarterly Filing

reading time: 11 minute(s)

The Q1 Form 941 filing deadline is just two weeks away. As businesses rush to meet the due date, filing errors become more common, leading to issues that could result in costly penalties. With the deadline quickly approaching, filing early and identifying mistakes ahead of time is essential. But what happens if you’ve already filed and discovered an error?

Don’t stress out—we’ve got you covered. In this guide, we’ll break down how Form 941-X helps you correct those errors quickly and confidently.

Form 941-X 

Form 941-X serves as the correction form for Form 941, enabling employers to amend any errors on a previously submitted and accepted Form 941.

Upon discovering an error in a previously submitted Form 941, employers are required to file Form 941-X to amend the return. Each Form 941 that contains an error must be corrected by filing a Form 941-X.

What corrections can be made with Form 941-X?

• Wages, tips, and other forms of compensation
• Taxable Social Security wages
• Taxable Social Security tips
• Taxable Medicare wages and tips
• Wages and tips subject to Additional Medicare Tax withholding
• Deferred employer shares of Social Security tax
• Deferred employee shares of Social Security tax
• Payroll tax credit for qualified small businesses conducting research activities

For returns filed before the 2024 tax year, additional types of errors may also be eligible for correction, including:

• Sick and family leave wages: Credits claimed for qualified sick and family leave wages for leave taken between April 1, 2020, and March 31, 2021, as well as between April 1, 2021, and September 30, 2021.
• Employee Retention Credit (ERC): You can fix errors related to the credit.
• COBRA Premium Assistance Credit: Adjust any incorrect amounts reported.

What corrections can not be made with Form 941-X?

While Form 941-X allows for many corrections, some items are not eligible for amendment through this form. These include:

• Federal income tax withholding errors from prior years that were not due to administrative mistakes
  
• Incorrect amounts of Additional Medicare Tax withheld in a previous year
  
• Failure to file Form 941 for a past quarter—Form 941-X should not be used; instead, the original Form 941 must be filed
  
• Errors related solely to the number of employees paid during the quarter
  
• Federal tax liability reporting issues on Schedule B of Form 941

Withdraw an ERC Claim

If you’ve submitted an ineligible ERC claim, withdrawing it can help you avoid future issues like audits, penalties, repayment, and interest. This process is available whether the ERC has not been paid or if you’ve received a check that you haven’t cashed or deposited yet.

Need to withdraw your ERC refund claim? Check out our blog on how to request a withdrawal.

When to File Form 941-X

To stay compliant and minimize potential issues, it’s recommended to file Form 941-X promptly once an error on a prior Form 941 is found.

Even though Form 941-X does not have a strict deadline, corrections for overreported taxes must typically be made within 3 years of the original Form 941 filing date or within 2 years of the date the tax was paid, whichever is later.

Corrections for underreported taxes are typically required within 3 years of the original Form 941 filing date.

File Form 941-X with TaxBandits to Stay IRS-Compliant

Made a mistake on your payroll return? No worries—TaxBandits has your back. We understand that errors can happen, and correcting them shouldn’t be a stressful experience. That’s why we’ve built an easy-to-use platform that makes filing Form 941-X fast, accurate, and hassle-free. 

With TaxBandits, you’ll benefit from real-time IRS status updates so you’re always in the loop, multiple payment options to suit your preferences, and world-class support from our knowledgeable team to guide you through every step. TaxBandits simplifies the process and helps keep your business IRS-compliant with confidence.

Ready to fix those payroll errors? Get started with Form 941-X and stay IRS-compliant.