The year is coming to a close, and that means that the new year and another tax season are on their way. You may have already begun the process of e-filing year-end Forms 1099, W-2, and annual 94x forms like Form 940, now you can also get started on your Form 941.
That’s right, Form 941 is now available from TaxBandits for the fourth quarter of 2023. Once you have your business’s year-end payroll information ready, you can complete Form 941 with TaxBandits and commence with holiday parties and ringing in the new year!
Here is a quick overview of what you need to know to complete the Q4, 941 for your business and/or your clients this quarter.
What is Form 941?
Just to recap – IRS Form 941 is a quarterly payroll form that is used by the majority of employers to report the social security, Medicare, and income taxes withheld from their employees’ wages. This form is filed with the IRS following these quarterly deadlines:
January 31, 2024: Q4 Deadline
April 30, 2024: Q1 Deadline
July 31, 2024: Q2 Deadline
October 31, 2024: Q3 deadline
While there are some exceptions, like seasonal employees, the majority of businesses will need to file this form with the IRS every quarter while the business is operating. Any businesses that close are required to file a final Form 941 with the IRS, indicating on the form that this is their last return.
What are the Form 941 Filing Requirements?
The biggest indicator that your business is going to need to file a 941 is having employees. Even businesses that have one employee or a small team are likely required to file this form reporting tax withholdings from the wages they’ve paid.
If you’ve paid wages to employees that are subject to social security, Medicare, and income tax withholdings, then your business will need to file Form 941 reporting this information as well as your tax liability for the quarter.
Filing Form 941 vs. Filing Form 944
While there are some exceptions to filing a quarterly 941, one of them is filing a Form 944 instead. Form 944, is the Employer’s Annual Federal Tax Return. Businesses that withhold tax amounts of $1,000 or less during the year can request to file this instead. It is very important to note that there is a specific process that businesses must follow when requesting this change to their payroll filing requirements.
To make this request you must contact the IRS between January 1st and April 30th by phone at 800-829-4933. Additionally, you can mail the IRS a written request, however this must be postmarked no later than March 15th. Until the IRS responds by sending a written notice confirming that you are now eligible to file Form 944 annually, you should continue to file your 941 quarterly.
What Information is Needed to Complete Form 941?
With the end of the year wrapping up, your business is focused on gathering a variety of business-related information for tax filing. When it comes to completing your 941, this is the information you will need:
The amount of wages the business paid to employees this quarter.
Any tips or additional compensation paid.
The amount of federal income tax withheld.
Your employer-share of social security and Medicare taxes.
The employee-share of social security and Medicare taxes.
Any quarterly adjustments to tax withholding amounts.
If the business is claiming the small business payroll credit for increasing research activities.
The business’s tax liability (not just deposits) for the quarter.
The business’s deposit schedule, whether it is monthly or semi-weekly.
In conclusion, whether you’re running a small business or managing a large enterprise, TaxBandits empowers you with a seamless and cost-effective IRS tax e-filing solution. Our user-friendly platform, equipped with built-in error checks and timely reminders, ensures accurate and efficient filings.
With widely varying features like 941 Zero-reporting for tax-free quarters and bulk upload options for tax preparers filing for multiple businesses, TaxBandits not only saves you time and money but improves your filing efficiency.
Embrace a seamless tax season with TaxBandits and keep your business on the path to success! In addition to Form 941, we also support all of your other ear-end filing needs, including, Form 1099, W-2, ACA 1095, 940, 943, 944, 945, and more!