As a small business owner, there is a constant stream of tasks to accomplish, an endless “to do” list to conquer on a daily basis. One of the most significant sources of stress is maintaining your business’ IRS compliance, especially when you are a small employer playing many key roles.
The fear of costly IRS penalties can be overwhelming at the best of times, but when you are trying to sustain and grow your business, it can be downright daunting.
Employers must file Form 941 each quarter, therefore this is a particularly time-consuming tax form. Whether you are just getting started filing this form, or you are curious if it has changed for the upcoming quarter, this article will help you complete your Form 941 successfully for 2024.
What Is the Form 941 Used to Report?
Employers are required to withhold certain taxes from their employees’ wages, this includes federal income taxes, Medicare taxes, and social security taxes. Form 941 is used to report these withholdings to the IRS.
Throughout the COVID-19 pandemic, Form 941 was also used by employers to report the refundable and non-refundable portions of their COVID-19 tax credits. This has included qualified sick and family leave wages, the employee retention credit, and the COBRA premium assistance credit. Now that all of these credits have expired, employers will no longer need to report them on Form 941.
Adjustments to Form 941 for the Second Quarter of 2024
While there are no major changes to the form for the second quarter of 2024, there are some adjustments that must be noted. All of these changes were made in response to the fact that all of the COVID-19-related tax credits have expired and can no longer be claimed on Form 941. This includes:
- Credits for qualified sick and family leave wages
- The Employee Retention Credit
- COBRA Premium Assistance Credits (most recent to expire)
This has affected several lines of Form 941, they no longer include the COBRA premium Assistance Credits. The following lines are now “Reserved for Future Use”:
- Line 11e: Non Refundable portion of COBRA premium assistance credit (see instructions for the applicable quarter).
- Line 11f: Number of individuals provided COBRA premium assistance
- Line 13f: Refundable portion of COBRA premium assistance credit (see instructions for the applicable quarter)
Some lines have been updated to exclude the lines above. This includes the following:
- Line 11g: Total nonrefundable credits. Add lines 11a, 11b, and 11d.
- Line 13g: Total deposits and refundable credits. Add lines 13a, 13c, and 13e.
Tips for Filing Form 941 Successfully for the 2024 Tax Year
When it comes to completing Form 941 this quarter, there are some easy ways to improve your filing experience and eliminate unnecessary stress.
The first thing to take into account is the deadline to file your form. Be sure to plan ahead for each deadline so that you won’t be completing your Form 941 at the last minute. Start familiarizing yourself with Form 941 for the second quarter deadline now, when there is still time to research it and consult a tax professional, if necessary. Please note each Form 941 deadline for the 2022 tax year.
- First quarter- May 02, 2022
- Second quarter- August 01, 2022
- Third quarter- October 31, 2022
- Fourth quarter- January 31, 2023
If any of the deadlines fall over a weekend or on a federal holiday, the next business day becomes the deadline.
Save Time by E-filing Form 941
Another way to eliminate the stress of filing is to switch from paper filing to electronic filing. This is an easy way to speed up the filing process and increase the security of your business’s sensitive information. If you are a semi-weekly depositor, required to file Form 941 Schedule B, you can still do so when filing electronically. Plus, you can get instant updates on the status of your form that you won’t receive if it is making its way to the IRS in the mail.
Are you looking for a simple and secure e-filing solution for your Form 941? Check out TaxBandits for more information.
Now that we have reviewed the purpose of Form 941 and the changes that may affect your business this quarter, we hope this information and these simple tips will help you feel more confident as you file for 2022!
