How to Complete Form 941 for the First Quarter of 2024
It’s time to file your payroll Form 941 for the First quarter and that means we are bringing you an updated “how-to” guide!
We are breaking down step by step how to easily file Form 941 for the First quarter of 2024 with TaxBandits! This guide is a combination of how to complete the filing process in our application and IRS guidance. For the full IRS instructions for Form 941, click here.
Starting a New Form 941
Once you’ve signed in to TaxBandits, select ‘Start New’ in the upper right corner:
Select ‘Form’
Select ‘Form 941’
Select the business you are filing for, or manually enter the business information. Then click ‘Save and Continue’.
Select the tax year and quarter you are filing for.
As you fill out the form, TaxBandits will automatically complete several of the calculations for you. You will only need to provide information in the yellow fields as it pertains to your business. If the box is gray, it is either not required or TaxBandits will complete that box for you based on other information you’ve provided.
Completing 941, Part 1:
Answer the questions in part 1 based on this quarter.
Line 1: Number of Employees Who Received Wages, Tips, or Other Compensation
Enter the number of employees on your payroll for the pay period.
Line 2: Wages, Tips, and Other Compensation
Enter amounts on line 2 that would also be included in box 1 of your employees’ Forms W-2. Include sick pay paid by your agent. Also include sick pay paid by a third party that isn’t your agent.
Line 3: Federal Income Tax Withheld From Wages, Tips, and Other Compensation
Enter the federal income tax you withheld (or were required to withhold) from your employees on this quarter’s wages, including qualified sick leave wages paid this quarter of 2022 for leave taken after March 31, 2020, and before October 1, 2021, and qualified family leave wages paid this quarter of 2022 for leave taken after March 31, 2020, and before October 1, 2021; tips; taxable fringe benefits; and supplemental unemployment compensation benefits
Line 4: If No Wages, Tips, and Other Compensation Are Subject to Social Security or Medicare Tax…
If no wages, tips, and other compensation on line 2 are subject to social security or Medicare tax, check the box on line 4.
If this question doesn’t apply to you, leave the box blank.
Line 5a–5e: Taxable Social Security and Medicare Wages and Tips
5a. Taxable social security wages. Enter the total wages, including qualified sick leave wages and qualified family leave wages paid in this quarter of 2022 for leave taken after March 31, 2021, and before October 1, 2021; sick pay; and taxable fringe benefits subject to social security taxes you paid to your employees during the quarter.
5b. Taxable social security tips. Enter all tips your employees reported to you during the quarter until the total of the tips and taxable wages, including wages reported on line 5a, qualified sick leave wages reported on line 5a(i), and qualified family leave wages reported on line 5a(ii), for an employee reach $147,000 for the year.
5c. Taxable Medicare wages & tips. Enter all wages, including qualified sick leave wages paid in this quarter of 2022 and qualified family leave wages paid in this quarter of 2022; tips; sick pay; and taxable fringe benefits that are subject to Medicare tax.
5d. Taxable wages & tips are subject to Additional Medicare Tax withholding. Enter all wages, including qualified sick leave wages paid in this quarter of 2022 and qualified family leave wages paid in this quarter of 2022; tips; sick pay; and taxable fringe benefits that are subject to Additional Medicare Tax withholding.
5e. Total social security and Medicare taxes. The column 2 amounts on lines 5a–5d will be added together, the result will be shown on line 5e.
5f. Section 3121(q) Notice and Demand—Tax Due on Unreported Tips Enter the tax due from your Section 3121(q) Notice and Demand on line 5f.
Line 6: Total Taxes Before Adjustments
The total federal income tax withheld from wages, tips, and other compensation (line 3); the total social security and Medicare taxes before adjustments (line 5e); and any tax due under a Section 3121(q) Notice and Demand (line 5f) are added together. The result will be shown on line 6.
Line 7: Current quarter’s adjustment for fractions of cents.
Enter adjustments for fractions of cents (due to rounding) relating to the employee share of social security and Medicare taxes withheld.
Line 8: Current quarter’s adjustment for sick pay.
If your third-party payer of sick pay that isn’t your agent transfers the liability for the employer share of the social security and Medicare taxes to you, enter a negative adjustment on line 8 for the employee share of social security and Medicare taxes that were withheld and deposited by your third-party sick pay payer on the sick pay.
Line 9: Current quarter’s adjustments for tips and group-term life insurance.
Enter a negative adjustment for any uncollected employee share of social security and Medicare taxes on tips, and the uncollected employee share of social security and Medicare taxes on group-term life insurance premiums paid for former employees.
Line 10: Total Taxes After Adjustments
Combine the amounts shown on lines 6–9 and enter the result on line 10.
Line 11: Qualified Small Business Payroll Tax Credit for Increasing Research Activities
Enter the amount of the credit from Form 8974, line 12.
Click “Save and Continue” to move to page 2:
Line 12: Total Taxes After Adjustments and Nonrefundable Credits
Line 13: Total Deposits for This Quarter
Enter your deposits for this quarter, including any overpayment from a prior quarter that you applied to this return. Also, include in the amount shown any overpayment that you applied from filing Form 941-X in the current quarter.
Line 14: Balance Due
If line 12 is more than line 13g, the difference will be shown on line 14.
Line 15: Overpayment
Completing Form 941, Part 2:
Enter information about your deposit schedule and tax liability for this quarter.
Line 16: Tax Liability for the Quarter
Select the option that applies to your business
-Line 12 on this return is less than $2,500 or line 12 on the return for the prior quarter was less than $2,500, and you didn’t incur a $100,000 next-day deposit obligation during the current quarter.
If you select this option, go to part 3.
-You were a monthly schedule depositor for the entire quarter.
If you select this option, complete the 3-month tax liability and then go to part 3.
-You were a semiweekly schedule depositor for any part of this quarter.
If you select this option, complete Schedule B and go to part 3.
Completing Form 941, Part 3:
Enter information about your business. If a question does NOT apply to your business, leave it blank.
Line 17: If your business has closed or you stopped paying wages
Check the box and enter the final date you paid wages.
Line 18: If you’re a seasonal employer and you don’t have to file a return for every quarter of the year
Check the box. If this does not apply to you, skip this line.
Completing Form 941, Part 4:
Contact information for your third-party designee.
f you select “Yes”, provide the designer’s name and phone number. Also, select a 5-digit PIN the designees can use when talking to the IRS.
If you select “No”, move on to Part 5.
Completing Form 941, Part 5:
You will need to provide an e-signature here.
You MUST complete both pages of this form and SIGN it.
Fill out the name, title, and daytime phone number boxes. The paid preparer section will be populated automatically using the details you’ve entered in your TaxBandits account. You will be prompted to complete the signature portion later. Click ‘Save and Continue’.
Review the Summary of the form
If changes are needed, select “Edit”, update the information as needed, and continue to follow the prompts. If no changes are needed, click “Continue”.
Review for any errors or audit issues
Review the form and correct any errors on your 941, then select “Continue” to proceed.
Form 941 – Signature
Click “E-Sign 8453-EMP”:
Once you have reviewed and signed the form, click ‘Next’:
Filing Fees
Review the filing fee and select if you would like a text notification regarding the status of your form or a paper copy of your form mailed to you.
Payment Information:
From the payment information screen, you can add a credit card, or edit an existing credit card. Once the necessary payment information is provided, click “Continue”:
Note: If you have purchased prepaid credits, apply a credit to the form rather than processing a payment.
Form 941 – Transmit Return:
Once your form has been successfully transmitted, you will see a confirmation page. From this page, you can navigate to the distribution center to download a copy of your form or review your payment receipt.
There you have it! The complete, line-by-line instructions for filing Form 941 for the first quarter of 2024!
Are you ready to start filing with TaxBandits?
