With the many updates and changes to the Form 941 this second quarter, many who usually paper file their form with the IRS are making the switch to electronic filing. When it comes to all the additional calculations of tax credits and the additional lines and worksheets, a lot can go wrong if you are filing a paper copy.
For anyone who is new to electronic filing or just needs a refresher before the upcoming deadline, this guide is for you!
To successfully e-file this quarter, the single most important thing to do is choose an IRS authorized e-file provider, like TaxBandits. We are authorized to transmit your form securely to the IRS using their e-file system.
Getting Started with E-filing Form 941
After creating your TaxBandits account, it’s time to get started! First you will need to complete your basic account information, this will differ depending on whether or not you are a business owner or tax professional. Now, click “Start New Form” and select the Form 941 for the second quarter.
If you already have a TaxBandits account, sign in and you’re ready to file, select the Form 941 for the second quarter of 2021.
Form 941 Part 1
In this section the IRS is collecting information on your wages, total withholding, and tax credits. The necessary 941 worksheets are included to help you calculate the refundable and nonrefundable portions of:
Sick and family leave credits
Employee retention credits
COBRA premium assistance credits
TaxBandits is helping you ditch mental math, automatic tax calculations are built-in!
Remember, if you didn’t pay wages to employees during the quarter, but are required to file, check the box under zero reporting. This will save you the time of completing most of the form.
Form 941 Part 2
The second portion of this form is where you will indicate your deposit schedule. If you are a semiweekly schedule depositor with over $2,500 on Line 12 of the 941, you are required to complete the Schedule B.
Good news, TaxBandits supports Schedule B and it can be completed easily. Remember, the total of your tax liability for each month must equal the value on line 12 of the 941.
If you are a monthly schedule depositor, you can indicate your total liability for each month and move on to the next section of the form.
Form 941 Part 3
In the third section of Form 941, only complete the lines that relate to your business. For example, if your business has not closed or is not a seasonal business, skip lines 17 and 18a. The majority of lines in this section ask for information about qualified wages and expenses that are allocable to the COVID-19 tax credits.
Form 941, Part 4 and 5
Congratulations, we’ve made it through the toughest parts of the Form 941, the math is behind us, now it’s time to sort out your e-signature and indicate if you have a third party designee.
If you want to allow a third-party to communicate with the IRS about this tax return, enter their information and create a 5 digit identifying PIN for them.
If not, check no and keep on moving!
Enter your information in part 5, you will be prompted to e-sign your form after it has been checked for errors. If you are a tax professional enter your PTIN and contact information. You will be prompted for your client’s e-signature later on in the process.
When it comes to e-signing, you will have two options, you can either enter the Online Signature PIN assigned by the IRS or e-sign Form 8453-EMP.
Tax professionals must use Form 8453-EMP and can send this form to their client through TaxBandits to get their digital signature, rather than faxing the form and scanning it.
That’s all there is to it. Next you will enter your payment information for our filing fee and hit the big green button to transmit to the IRS! We will continue to keep you updated as the IRS processes your Form 941.
As you can see the TaxBandits e-filing process is straightforward and designed to help you file successfully. You can e-file your Form 941 starting at just 4.95!