With the Form 941 deadline for the second quarter of 2023 coming up on July 31st, we decided it’s time to break down the filing process.
Here is a complete overview of the TaxBandits 941 e-filing process!
Getting Started in TaxBandits
Sign in to your TaxBandits account, and click ‘Start New’ in the upper right corner of your screen.
Choose ‘941’ from the supported forms.
Click the dropdown menu to choose the business that you are filing for, or click ‘Add New’ to manually enter a new business. To proceed, click ‘Save and Continue’.
Select the tax year and quarter you are filing for.
Before you begin completing Form 941, TaxBandits requires that you enter the name of the business and provide your consent to confirm that you have permission to file an IRS tax form on behalf of this business and that all of the information you provide is accurate to the best of your knowledge.
Now, let’s get filing…
Great news! As you complete your form, TaxBandits will help you by automatically calculating certain amounts, you just need to enter your business’s information in the yellow boxes. All gray boxes will be calculated for you, or in some cases, it is not a required field.
A Closer Look at Form 941, Part 1
As you can see in the example below, your business’s basic information will be pre-filled on the form. Here are a few notable areas on Part 1 of Form 941 where TaxBandits offers a helpful feature, information, or guidance.
If you don’t have any taxable wages to report for the quarter, but your business is still required to file, you can use the Zero Reporting feature. By checking this box, TaxBandits will help you by entering zeros as needed and speeding up your filing process.
If you have any questions about the taxable wages and tip information required on lines 5a-5aii, click the question mark icon to view the help text.
If you need to reference the IRS instructions for assistance during the filing process, you can click the hyperlinked ‘(see instructions)’ to open them. You can also click here to access the IRS Instructions for Form 941.
If you enter an amount on Line 11a because your business is claiming a Small Business Payroll Tax Credit for Increasing Research Activities, TaxBandits will automatically attach the required Form 8974 to your 941 filing flow.
If you need to calculate the amount on Line 11b, you can click the orange ‘Worksheet 1’ button to fill out Worksheet 1.
When you complete page 1 of the filing flow, you can click the ‘Save and Continue’ button to move to the next page.
On page 2, you will continue to complete Part 1 of the 941. If you need Worksheets 1 or 2 to help you calculate amounts, you can click the buttons for ‘Worksheet 1’ and ‘Worksheet 2’ as needed.
If you need access to IRS instructions, you can click the hyperlinked ‘(see instructions)’ again.
A Closer Look at Form 941, Part 2
In Part 2 of the form, the IRS requires businesses to provide information about their deposit schedule and tax liability for the quarter. Semi-weekly depositors are required to complete and attach Schedule B to their Form 941.
If the amount on Line 12 is less than $2500, and the business hasn’t accumulated a next-day deposit of $100,000 or more, you are not required to attach Schedule B. If the business is a monthly depositor, you can check the second box and enter the tax liability (not deposits) for each month of the quarter and proceed to Part 3 of the 941. Semi-weekly depositors can proceed to complete 941 Schedule B.
A Closer Look at Form 941, Schedule B
If the business is a semi-weekly depositor, you can proceed to complete Schedule B. As you can see in the example below, first, you will enter the tax liability for each day of the quarter, and TaxBandits will calculate the monthly total. Keep in mind that the total for all three months must equal the amount that you entered on Line 12. Again, this is the business’s tax liability, not deposits.
TaxBandits has a built-in error check that will not allow you to proceed until the liability totals out correctly based on the amount entered on Line 12.
A Closer Look at Form 941, Part 3
In Part 3 of Tax Form 941, you are only required to complete the fields that apply to your business. The TaxBandits team often gets questions about Line 17 of the form. If your business is open and operational, this line should be skipped.
However, if your business has closed and is no longer paying employees it is important that you check the box and enter the final date that wages were paid. This indicates to the IRS that this was your final return for the business.
You can also skip any fields that are “Reserved for future use”, as there is no purpose for them at this time. Once complete, you can proceed to Part 4.
Completing Form 941, Part 4
Part 4 of Form 941 is relatively straightforward, and if you’ve made it this far, you are almost finished! In part 4 you simply need to indicate if you want to allow the IRS to reach out to a third-party designee. This could be a relevant employee or tax professional that you’ve authorized to discuss the return with the IRS.
If there is a third-party designee, enter their name, contact information, and create a 5-digit PIN that they will use when speaking with the IRS. If there is no one that you want to authorize to discuss the return, select the ‘No’ checkbox and continue to Part 5.
Completing Form 941, Part 5
You are required to fill out the form and sign it.
Enter your name, title, and daytime phone number. If applicable, the ‘Paid Preparer’ section will be populated automatically using the information entered in your TaxBandits account. You will be prompted to complete the signature portion later. Click ‘Save and Continue’ to proceed.
Select your Method to Pay the IRS Tax Balance
If you have a tax balance due to the IRS, you will need to select your preferred option for making the payment. TaxBandits supports the following payment methods
Electronic Funds Withdrawal (EFW)
Electronic Federal Tax Payment System (EFTPS)
Please note that you will need to have an account set up with the IRS prior to making the payment.
After your form is accepted, you will be prompted to make the IRS tax payment by email.
If the amount of the tax due to the IRS is less than $2,500 you can make the payment through your TaxBandits account.
If the amount is greater than $2,500, you will be sent a link to a payment processor.
Check or money order
If you choose this method, you will need to initiate the payment to the IRS. Download the 941-V (payment voucher) to include with your check or money order.
After selecting the payment method you prefer, the ‘Save and Continue’ button will become clickable and you can proceed.
Review the Form 941 Summary Page
If changes are needed, select “Edit”, update the information as needed, and continue to follow the prompts. If no changes are needed, click “Continue”.
If you see that any of the information needs to be updated before transmitting, click the pencil icon to edit. If all of the information provided is correct, click ‘Continue’ to proceed.
Form 941 Audit Process
Review and correct any errors on your return, select ‘Continue’ after you made any corrections and there are no errors identified.
Providing your Form 941 E-signature
If you have an online signature PIN, you may enter it here. If not you can provide your signature using Form 8453-EMP, click the orange button to e-sign.
Provide your e-signature in the box either by typing it or using the stylus option. Check the box to confirm that this will be the electronic representation of your signature. When you are satisfied with the signature click ‘Adopt and Sign’ to continue.
*You can actually apply for an Online Signature PIN from the IRS through TaxBandits for free. However, it can take up to 45 days, so you will need to use Form 8453-EMP for this quarter’s return.
Review and understand the purpose of providing your e-signature, then click ‘Next’ to proceed.
TaxBandits Filing Fees for 941
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.
If you have prepaid credits available in your account, you can select this option and skip entering credit card information. If you don’t have credits or choose not to apply them select the credit card payment option.
You can select additional services such as text notifications and/or a printed copy of the 941.
Entering Payment Information & Form Transmission:
Review all of the details and click the green ‘Complete Filing’ button to add credit card information for TaxBandits’ filing fee.
You can select an existing credit card or add a new credit card to complete your order.
You can select an existing credit card or add a new credit card to complete your order. Then, click the green ‘Pay and Transmit’ button.
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.
You can also make note of the next steps in the process of making your IRS tax payment.
Ready to create your free TaxBandits account and get started? Click here if you already have a TaxBandits account.