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941 Federal Tax Form 2024 - Understand about Quarterly Federal Tax Return

Updated on February 20, 2024 - 10:30 AM by Admin, TaxBandits

Form 941 is an essential tax form used by employers to report Federal income taxes and both the employer's and employee's share of Social Security and Medicare taxes.

Employers are required to file this form each quarter based on their tax liability.

1. What is IRS Form 941?

The IRS Form 941 is an Employer's Quarterly Tax Return. Employers use Tax Form 941 to report federal income tax withheld, social security tax, and Medicare tax (FICA taxes) from each employee's salary. This form is also used to calculate the employer's Social Security and Medicare tax contributions and additional taxes withheld.

Form 941
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It’s important to accurately file Form 941. IRS compares the amounts on your Form 941 with your annual
Form W2.


2. Who needs to file Quarterly Form 941 for 2024 & 2023 Tax Year?

Employers or business owners who pay wages to an employee must file IRS Tax Form 941 every quarter.

There are a few exceptions. If you are

  • Seasonal business employers
  • Employers of household employees
  • Employers of farm employees

then you don’t have to file Form 941.

For example, if you received a notification to file Form 944 instead of Tax Form 941, you must file Form 944 annually.

Form 941

3. What are the changes to Form 941 for 2024?

The IRS recently released a draft of Form 941 for the 2024 tax year. Based on this draft, the following changes have been made to the form:

  • The Social Security wage base limit for 2024 has been increased from $160,200 to $168,600. Notably, there is no change in Medicare tax rates.
  • In 2024, the social security and medicare tax apply to Household employees who are paid $2,700 or more.
  • Similarly, Social Security and Medicare taxes apply to election workers who receive $2,300 or more in 2024.
  • Starting from the 2024 tax year, Covid-19 credits for qualified sick and family leave wages are no longer available on Form 941.
  • A few of the lines have been removed from Form 941 for 2024.

Visit https://www.taxbandits.com/revised-form-941-changes-for-2024/ for more information about changes in
form 941 for 2024.


4. What are the new updates in Form 941 for 2023?

The Form 941 for 2023 has a few minor changes.

  • First, the IRS revised Form 8974, Qualified Small Business Payroll Tax Credit for Expanding Research Activities. Small businesses can now use this form to claim a tax credit of up to $250,000.
  • Line 12 of Form 8974 has been modified to reflect this. Credit against the employer portion of social security tax has replaced the previous quarter's "Credit" terminology. Moreover, the form now includes Lines 13–17 for the first quarter of 2023.
  • Worksheet 2 has been reintroduced by the IRS for the first quarter of 2023, and the first step of Worksheet 1 has been changed.
  • It is also important to note that the social security wage base limit for the 2023 tax year is now $160,200. Form 941-PR and 941-SS will likely be discontinued after the 2023 tax year.

Visit https://www.taxbandits.com/form-941/revised-new-irs-form-941-for-q1-2023/ for more detailed information about changes in form 941 for 2023.


5. What is IRS Form 941 Schedule B?

Employers are required to deposit the federal income taxes withheld, as well as both the employer's and employee's share of social security and Medicare taxes, If the total taxes, after adjustments and nonrefundable credits (as indicated on Form 941 (line 12)), amount to $2,500 or more for both the current quarter and the prior quarter.

Semiweekly schedule depositors who report more than $50,000 in employment taxes use the IRS Form 941 Schedule B. Businesses that have more than $100,000 in liabilities in a single day during the tax year must also begin filing this Schedule.

Visit https://www.taxbandits.com/form-941/form-941-schedule-b/ to know more 941 Schedule B.


6. Information required to file Form 941 for 2024 & 2023 Tax Year

Information to be reported on Form 941

As an employer, you need to report the following information when you are filing IRS Form 941 Quarterly Report with the IRS:

  • Quarter for which form 941 is filed
  • Business details including:
    • Business Name, EIN, and Address
  • Employment Details:
    • Number of Employees
    • Medicare and Social Security Taxes
    • Deposits Made to the IRS
    • Deposit schedule and tax liability
    • Signing Authority Information
    • Online Signature PIN or Form 8453-EMP
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You can’t wait until the 941 filing deadline to pay all the taxes for the quarter. You must deposit the taxes either monthly or semi-weekly, depending on the amount that you owe.

Information that shouldn’t be reported on the 941 Tax Form

Use the revised Form 941 2023 for reporting tax withholdings from employee wages. You shouldn’t report nonpayroll withholding information on Tax Form 941. This includes employee backup withholding and
income tax withholding for:

  • Pensions
  • Annuities
  • Gambling wins

Use Form 945 to report the withholdings from pensions, annuities and gambling wins.


7. When is the deadline for Form 941 for 2024 Tax Year?

Your 941 quarterly Form is due by the last day of the month that follows the end of the quarter:

  • April 30, 2024 for the First-quarter (January, February, and March)
  • July 31, 2024 for the Second-quarter (April, May, and June)
  • October 31, 2024 for the Third-quarter (July, August, and September)
  • January 31, 2025 for the Fourth-quarter (October, November, and December)

If the 941 due date falls on any federal holiday, then the next business day will be the filing deadline.

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If your taxes have been deposited on time and in full, the deadline is extended to the 10th day of the second month following the end of the quarter.

Visit https://www.taxbandits.com/form-941/form-941-due-date/ to learn more.


8. Filing methods of Form 941 for 2024 & 2023 Tax Year

The traditional paper filing Form 941 involves more time and effort. Many hidden costs like printing, envelopes, and postal mailing charges are included. Tracking the filing status of your Form 941 can be stressful for employers, as they might not know whether or not the return is accepted by the IRS.

E-filing of Form 941 for 2024 is the easiest method and it is actually preferred by the IRS. Employers will be able to get their IRS filing status instantly and the total filing process will take less than 5 minutes. This method saves employers time and allows them to easily pay their balance due as well.


9. How do I fill out a Form 941 if no wages were paid?

Yes, you are required to file Form 941 even if you have not paid any wages to your employees for the quarter. To do so, you need to indicate this on Form 941 by checking the box on line 18 for each applicable quarter.


10. What are the key differences between IRS Form 940 and Form 941?

The key differences between IRS Form 940 and Form 941 lie in their specific purposes. Form 940, also known as the Employer's Annual Federal Unemployment (FUTA) Tax Return, is used for reporting and paying annual federal unemployment tax, whereas Form 941, the Employer's Quarterly Federal Tax Return, is used for reporting employment taxes such as income tax withheld from employee paychecks and both the employer and employee portions of Social Security and Medicare taxes. Learn more in detail about Form 940 vs 941.


11. What is the difference between Form 941 and Form 944?

Form 941 and 944 are both forms used to report payroll tax information to the IRS. However there are some major differences in the business tax liability, Form 941 is used to report quarterly payroll taxes, including income tax withheld from employee paychecks and both the employer and employee portions of Social Security and Medicare taxes. In contrast, Form 944 is an annual report for small employers (whose annual taxability is less than $1,000 per year) to file their payroll taxes once a year instead of quarterly. Learn more in detail about Form 941 vs 944.


12. E-file Form 941 in minutes with TaxBandits

With TaxBandits you can e-file Form 941 with automatic tax calculations, error checks using the IRS Business Rules, built-in worksheets, 941 Schedule B, and 8453 EMP. Complete and transmit accurate forms in minutes by following three simple steps!

  • Step 1 : Create a free TaxBandits account!
  • Step 2 : Choose "Form 941" and enter the details.
  • Step 3 : Review and Transmit to the IRS.
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