The deadline to file Form 941 for the first quarter of 2023 is just around the corner! If you needed a reminder to start filing for your business, this is it!
Form 941 is a payroll form that employers are required to file to report the amount of taxes withheld from their employee’s paychecks during the quarter.
While there aren’t many updates to Form 941 for this quarter, there are a few things that businesses and tax professionals should be aware of during the filing process.
When is the Form 941, Q1 Deadline?
The deadline to file Form 941 for the first quarter of 2023 is May 1, 2023. The first quarter Form 941 includes information from January 1, 2023, through March 31, 2023.
Form 941 is typically due on the last day of the month following the end of the quarter.
Updates to Form 941 for Q1, 2023
Employers and tax professionals should keep these updates in mind when filing this quarter.
The wage base limit for social security has been increased to $160,200 for the 2023 tax year.
While there aren’t many notable changes to the 941, there have been several updates to Form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities. Employers that are claiming this tax credit for their business are required to complete and attach this form to their quarterly Form 941 filing.
The Inflation Reduction Act of 2022 increased the amount that businesses can claim from $250,000 to $500,000. Effective in 2023, the credit will first reduce the employer’s share of social security up to $250,000 per quarter, and any remaining credit will be applied to the Medicare tax.
Are there any 941 Worksheets Available for Q1?
There are two worksheets available, COVID-19 tax credits are no longer available, but back credits can be claimed by eligible businesses.
Worksheet 1. Credit for Qualified Sick and Family Leave Wages Paid This Quarter of 2023 for Leave Taken After March 31, 2020, and Before April 1, 2021
Worksheet 2. Credit for Qualified Sick and Family Leave Wages Paid This Quarter of 2023 for Leave Taken After March 31, 2021, and Before October 1, 2021
E-filing Form 941 is Easy with TaxBandits!
Now that we’ve covered the basics of filing Form 941 for the first quarter of 2023, let’s focus on meeting your deadline. Create your free TaxBandits account and begin e-filing with our simple process.
Your form will be audited for errors once you have completed it. There is no need to worry about which worksheets you need or attach Schedule B for semi-weekly depositors, they are included in the filing flow!
By e-filing Form 941 with TaxBandits, not only will your form be processed at a faster rate than paper forms, and we provide instant IRS status updates from the time you transmit until the form is accepted!