A Form 941 Filing Guide for 2022

Whether you are the owner of a small business with a few employees or a large business that is bustling with many employees, your quarterly payroll filing with the IRS is a crucial part of your IRS filing requirements. 

Certain businesses are required by the IRS to file Form 941, the Employer’s Quarterly Federal Tax Return. 

If you are a new business filing its first quarterly return, or a seasoned CPA filing on behalf of multiple clients, completing this form can be tricky. Why? This is due to the fact that this form has undergone revisions and updates nearly every quarter during the pandemic. 

Many of the programs and tax credits created to assist businesses throughout the pandemic are beginning to expire, and Form 941 will most likely be updated throughout 2022 to reflect this. 

This is a helpful guide to filing Form 941 throughout the 2022 tax year. 


What Businesses are Required to File Form 941?

All businesses that employ workers and are required to withhold certain taxes from their wages are also required to file Form 941. 

On Form 941, employers report the amounts of Medicare, social security, and federal income taxes withheld from their employees’ wages every quarter. Even if the employer paid no wages during the quarter, they must file Form 941 if their business is still open. If their business has closed they will need to file and indicate that this is the final return. 

There are a few specific exceptions to this. That includes seasonal employers, who are only required to file Form 941 for the quarters that they were operational. 


What Information is Required to File Form 941 with the IRS?

Businesses must provide a series of information on Form 941, ranging from basic information to more intricate withholding information. Here is a quick overview: 

  • The business’ name, address, and EIN
  • Total wages, tips, and compensation paid to employees
  • The amounts of Medicare, social security, and income taxes withholding
  • Any applicable credits claimed (ex. Sick and family leave wages, COBRA premium assistance credits)
    • Please note that the employee retention credit is no longer available for any quarter in 2022. 
  • If you claimed the small business payroll credit for increasing research activities  (you must attach Form 8974). 
  • Your deposit schedule with the IRS (Semi-weekly depositors must attach Schedule B). 


What are the 2022 Deadlines to File Form 941? 

There are four major deadlines for Form 941 during the 2022 tax year. These include the following:

  • May 2, 2022 (First Quarter)
  • August 1, 2022 (Second Quarter)
  • October 31, 2022 (Third Quarter)
  • January 31, 2023 (Fourth Quarter)

It is important to note that the Form 941 deadline for each quarter is the last day of the month following the close of that quarter. If this date falls on a weekend or holiday, the next business day becomes the deadline. 


Understanding your Deposit Schedule

Before filing for the quarter, it is crucial to understand your deposit schedule with the IRS. This will determine whether or not you need to complete Schedule B. For example, if your business is reporting over $50,000 in employment taxes for the previous period, then Schedule B is required. 

On Schedule B, employers must enter specific information about their tax liability throughout the quarter. TaxBandits includes Schedule B in the e-filing flow, so if you need to complete it, you can easily do so!


What are the Methods for Filing Form 941 with the IRS?

The IRS accepts both paper copies of Form 941 and forms that are filed electronically. While these are both acceptable methods, the IRS prefers that employers e-file this form. E-filing certainly has added benefits. 

For example, the IRS processes these forms faster and provides an update on the form status that employers won’t get if they choose to mail in a paper copy. Depending on the IRS-authorized e-file provider that you choose, you can take advantage of added benefits like built-in audits and tax calculations as well. 

Regardless of your method of filing, it is important to adhere to IRS deadlines to avoid penalties. We hope that you will find this guide helpful when it comes time to meet your next quarterly 941 deadline!