Any business that has employees must file Form 941.
It is due quarterly to the IRS and part of your responsibility is to withhold and remit payroll taxes. You can file for free by mail, online for a fee through an IRS-approved software provider, or do it yourself by a tax service provider.
If you have questions about how Form 941 works, you’re in the right place. The 2023 version of the form can be downloaded here.
We’ll break down what it is, how it’s changing in 2023, and everything you need to know.
- What is Form 941?
- What’s new in 2023?
- when is this
- What is the easiest way to upload a file?
- Where to file Form 941
- Where do you send Form 941?
- What are the penalties for late submissions?
- Are there exceptions to when you don’t have to file?
- Get help form 941
What is Form 941?
Form 941 reports Social Security, earnings, and Medicare tax withholding to the IRS.
To file, you or your tax accountant will need to gather the following information:
- Total wages paid to all employees
- Tips are reported
- Federal income tax was withheld
- Social Security and Medicare Tax Withholding
- Adjustment of tax liability due to sick pay or family leave
|Important! This form of account is separate from your responsibility for paying these fees. Do this monthly or semi-weekly with or through your tax accountant EFTPS.|
What’s new in 2023 for Form 941?
In 2023, the IRS made several significant changes to the 941.
- The maximum amount of wages subject to tax per year, known as the wage base limit, for Social Security taxes is from $147,000 in 2022 to $160,200 in 2023. Payments above this amount are not subject to social security tax.
- There is still no wage base cap for Medicare tax.
- Form 941 can now be used to claim a small business payroll tax credit for expanding research activities with a tax credit of up to $250,000.
- Social Security and Medicare taxes now apply to domestic workers, such as maids or gardeners, who are paid $2,600 or more a year. Similarly, election workers were paid more than $2,200.
|part of the employee||part of the employer|
The 2023 Social Security and Medicare tax rates have not changed. When you make payments to the IRS, be sure to include both your portion and your employee’s portion.
What is the timeline for 2023?
You must complete Form 941 on the last day of the month at the end of each quarter. There are penalties for being late. To make sure you don’t miss any deadlines, here are the dates to put on your calendar:
|period||According to the date|
|Q1: January February March||April 30|
|Q2: April, May, June||July 31|
|Q3: July, August, September||October 31|
|Q4: October, November, December||January 31|
What is the easiest way to write a file?
If you have more than a few employees, the easiest way to apply is to hire an accountant. It will save you the headache of doing it yourself, give you peace of mind knowing it’s done right, and potentially pay off in tax savings and optimized financial strategies that only an expert knows.
Would you like Indinero to simplify your life while optimizing your tax strategy and saving money? Book a call with one of our experts.
Where to file Form 941
You can file Form 941 digitally or by mail.
To apply online, check this out List of IRS approved software solutions or visit Tax 1099 website.
The IRS doesn’t have its own digital filing service, and surprisingly, some popular tax software like TurboTax won’t file your 941 either. Although mailing is free, there is no way to send it for free on the Internet. This is why so many businesses apply Tax professionals like those at Indinero To submit this important form.
Where do you send Form 941?
To mail your Form 941, download and print it 2023 edition here and refer to this list of state-specific addresses to find out where to send it:
What are the penalties for late submissions?
As you know, the IRS does not interfere when it comes to deadlines. They charge both a flat fee and annual interest for late payments. Hiring an agent to handle your payments A great way to avoid accidentally paying them.
|2%||1-5 days late|
|5%||6-15 days late|
|10%||Within 10 days of your first IRS notice|
|15%||10 days after your first IRS notice|
Are there exceptions to when you don’t have to file?
For the most part, no. But there are some outliers to keep in mind:
- If you have a seasonal business that doesn’t pay employees for an entire quarter. Notify the IRS of this information when you doing Enter by checking the box on line 18
- If your business owes less than $1,000 in total payroll taxes, file Form 944 instead. This is actually Form 941, which is only due once a year
- If you employ domestic workers, such as maids or gardeners, and pay less than $2,600 a year
- If you employ election workers and pay them less than $2,200 a year
- If you employ agricultural labor, file Form 943 instead
Staying on top of all the tax forms required for a growing business can be difficult. If you have more questions about Form 941 or anything else related to your business finances, Book a call with one of our experts.