How to Complete the Quarterly 941 for 2024

Check out the TaxBandits filing process for the Q3 941!

Stephanie Glanville | October 11, 2024 | Read time: 12 minute(s) | Form 94x Series, How-To | No Comments

It’s time to file your payroll Form 941 for the third quarter, which 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 third quarter of 2024 with TaxBandits! This guide combines instructions for completing the filing process in our application with IRS guidance. For the full IRS instructions for Form 941, click here.

Starting a New Form 941

Once you’ve signed in to TaxBandits, Click the blue arrow next to the 94X in the Tax Form section:

Click Start New Form

Select ‘Form 941’

Select the business you are filing for, or enter the information manually. Then click ‘Save & Continue’.

Select the tax year and quarter you are filing for.

Complete the consent form by checking ‘confirm’ and enter the EXACT business name on file with the IRS.

As you fill out the form, TaxBandits will automatically complete several calculations for you. You only need to provide information regarding your business in the yellow fields. If the box is gray, it is either not required, or TaxBandits will complete it based on other information you’ve provided.

Completing 941, Part 1:

Answer the questions in part 1 based on the current 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, 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 and taxable fringe benefits subject to the social security taxes you paid 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.

5c. Taxable Medicare wages & tips. Enter all wages and taxable fringe benefits that are subject to Medicare tax.

5d. Taxable wages & tips are subject to Additional Medicare Tax withholding. Enter all wages, sick pay, and taxable fringe benefits subject to Additional Medicare Tax withholding.

5e. Total social security and Medicare taxes. Column 2 amounts on lines 5a–5d will be added together, and 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.

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

Click Save & Continue in the lower right corner.

Completing Form 941, Part 2:

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 scheduled 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 scheduled 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.

If you select “Yes,” provide the designee’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 automatically be populated using the details entered in your TaxBandits account. You will be prompted to complete the signature portion later. Click ‘Save & 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, correct any errors on your 941, and select “Continue” to proceed.

Form 941 – Signature

Click “E-Sign or Manual Upload” Form 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.

Return Details

Based on your Form 941 information, you may need to report your Beneficial Owner information (BOI) to the FinCEN. Select the option that fits your business needs.

Review the filing information, make necessary corrections, and click ‘Complete Filing.’

Payment Information:

From the payment information screen, add a card or select one from your account, add the CVV, click the confirmation, and then Pay and Transmit.

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. You can download a copy of your form from this page or review your payment receipt.