How to Complete Your Clients’ Form 941 for the Third Quarter of 2022
We are breaking down step by step how to easily file your client’s Form 941 for the third quarter of 2022 with TaxBandits!
These instructions are a combination of the IRS guidance for filing Form 941 for Q3 and the steps for completing the TaxBandits filing process. For more information on this form, check out the full IRS instructions, here.
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 client’s 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 These Questions for 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 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.
5a(i). Qualified sick leave wages. Enter the qualified taxable (subject to social security tax) sick leave wages you paid this quarter of 2022 to your employees for leave taken after March 31, 2020, and before April 1, 2021.
5a(ii). Qualified family leave wages. Enter the qualified taxable (subject to social security tax) family leave wages you paid this quarter of 2022 to your employees for leave taken after March 31, 2020, and before April 1, 2021.
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 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 11a: Qualified Small Business Payroll Tax Credit for Increasing Research Activities
Enter the amount of the credit from Form 8974, line 12.
Line 11b: Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021
Complete worksheet 1 and enter the number on line 11b if applicable.
Line 11c: Reserved for future use
Click “Save and Continue” to move to page 2:
Line 11d: Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for
Leave Taken After March 31, 2021, and Before October 1, 2021
Complete worksheet 2 and enter the number on line 11d.
Line 11e: Reserved for future use
Line 11f: Reserved for future use
Line 11g: Total Nonrefundable Credits
Lines 11a, 11b, 11d, and 11e will be added together. The total will be shown on line 11g.
Line 12: Total Taxes After Adjustments and Nonrefundable Credits
Line 11g will be subtracted from line 10. The result will be shown on line 12. The amount entered on line 12 can’t be less than zero.
Line 13a: 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 included in the amount shown is any overpayment that you applied from filing Form 941-X in the current quarter.
Line 13b: Reserved for future use
Line 13c: Refundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021
Complete line 13c only if qualified sick leave wages and/or qualified family leave wages were paid this quarter of 2022 for leave taken after March 31, 2020, and before April 1, 2021. If applicable, complete worksheet 1 and enter the number on line 13c.
Line 13d: Reserved for future use
Line 13e: Refundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021
Complete line 13e only if qualified sick leave wages and/or qualified family leave wages were paid this quarter of 2022 for leave taken after March 31, 2021, and before October 1, 2021. If applicable, complete worksheet 2 and enter the number on line 13e.
Line 13f: Reserved for future use
Line 13g: Total Deposits and Refundable Credits
Lines 13a, 13c, and 13e will be added together. The total will be shown on line 13g.
Line 13h: Reserved for future use
Line 13i: Reserved for future use
Line 14: Balance Due
If line 12 is more than line 13g, the difference will be shown on line 14.
Line 15: Overpayment
If line 13g is more than line 12, the difference will be shown on line 15. Select how you would like to receive your refund by checking the appropriate box.
Completing 941, Part 2:
Tell us 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 941, Part 3:
Tell us 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.
Line 19: Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021
Enter the qualified health plan expenses allocable to qualified sick leave wages paid in the quarter of 2022 for leave taken after March 31, 2020, and before April 1, 2021.
Line 20: Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021
Enter the qualified health plan expenses allocable to qualified family leave wages paid in this quarter of 2022 for leave taken after March 31, 2020, and before April 1, 2021.
Line 21: Reserved for future use
Line 22: Reserved for future use
Line 23: Qualified Sick Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021
Enter the qualified sick leave wages you paid in this quarter of 2022 to your employees for leave taken after March 31, 2021, and before October 1, 2021.
Line 24: Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Reported on Line 23
Enter the qualified health plan expenses allocable to qualified sick leave wages paid in this quarter of 2022 for leave taken after March 31, 2021, and before October 1, 2021.
Line 25: Amounts Under Certain Collectively Bargained Agreements Allocable to Qualified Sick Leave Wages Reported on Line 23
Enter the collectively bargained defined benefit pension plan contributions and collectively bargained apprenticeship program contributions allocable to qualified sick leave wages paid in this quarter of 2022 for leave taken after March 31, 2021, and before October 1, 2021.
Line 26: Qualified Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021
Enter the qualified family leave wages you paid in this quarter of 2022 to your employees for leave taken after March 31, 2021, and before October 1, 2021.
Line 27: Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages Reported on Line 26
Enter the qualified health plan expenses allocable to qualified family leave wages paid in this quarter of 2022 for leave taken after March 31, 2021, and before October 1, 2021.
Line 28: Amounts Under Certain Collectively Bargained Agreements Allocable to Qualified Family Leave Wages Reported on Line 26
Enter the collectively bargained defined benefit pension plan contributions and collectively bargained apprenticeship program contributions allocable to qualified family leave wages paid in this quarter of 2022 for leave taken after March 31, 2021, and before October 1, 2021.
Completing 941, Part 4:
May we speak with your third-party designee
If 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 941, Part 5:
Sign 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 and correct any errors on your return, select “Continue” when you have no errors
Form 941 – Signature
Under Step 2, click “Send E-Sign”:
Note: If you are a Reporting Agent, your Reporting Agent PIN can be used instead of Form 8453-EMP.
Enter the Taxpayers email address and click “Send”:
When the form has been sent to the taxpayer, your “Taxpayer Notified” field will be orange, if you need to resend the signature page, you can select “Resend E-sign” to the taxpayer.
Once your client has signed the form, complete the taxpayer signature, then click ‘Next’:
Review the completed 8453-EMP if needed, then click ‘Next’:
Review the filing fee and select if you would like a text notification regarding the status of your client’s form or a paper copy of your client’s form mailed.
941 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 client’s form has been successfully transmitted, you will receive a confirmation page. From this page, you can navigate to the distribution center to download a copy of your client’s form or review your payment receipt.
Looking for more information about Form 941? Be sure to check out our complete Knowledge Base. It is full of information, help articles, and frequently asked questions for all the forms we support!
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