IRS Form 941 for 2024 & 2023: Employer’s Quarterly Federal Tax Return

What is Form 941?

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

Who Needs To File Form 941?

Employers or business owners who withhold income taxes, Social Security taxes, and Medicare taxes from employees' wages must file IRS Tax Form 941 every quarter. This includes firms that pay employees and owe over $1,000 in Social Security, Medicare, and income taxes in a quarter. These firms must continue to submit quarterly reports even without employees.

There are a few exceptions. If you are

• Seasonal business employer
• Employer of household employees
• Employer of farm employees

If you fall under any of the above-mentioned exceptions, then you don’t have to file Form 941.

Key Changes to IRS Form 941 for the 2024 Tax Year

The IRS has recently revised Form 941 for the 2024 tax year. Based on this, the following changes have been made to the form 941 for 2024:

• 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 can no longer be claimed on Form 941.
• After 2023, Forms 941-SS and Form 941-PR are to be discontinued. Instead, employers in the U.S. territories will use Form 941 to report their tax withholdings or, if they prefer a Form in Spanish, they can file using the new
  Form 941 (sp).
• Publications. 51, 80, and 179 will no longer be available after 2023. Instead, information essential to employers in U.S. territories and agricultural employers will be included in Publication 15 (Employer's Tax Guide).

Deadline to file Form 941 for 2024 Tax Year

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

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

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

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 will use 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.

Information required before filing 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

Filing methods of Form 941 for the 2024 Tax Year

The traditional paper filing 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 recommended by the IRS. Employers will be able to get their 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.

How do I fill out 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.

Information that shouldn’t be reported on Tax Form 941

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.

IRS Form 940 vs IRS Form 941: What’s the difference?

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.

IRS Form 944 vs IRS Form 944: What’s the difference?

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.

How to E-File Quarterly Form 941 for your business?

TaxBandits, as an authorized 941 MeF provider, helps employers file Form 941 with the IRS securely and accurately to stay tax compliant. We mark history by standing out as an excellent e-file service provider in the industry for filing 941 Forms with the IRS for many years.

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.

Article Sources:

• https://www.irs.gov/pub/irs-pdf/f941.pdf
• https://www.irs.gov/pub/irs-pdf/i941.pdf