Form 941 for the 1st Quarter of 2024: What Small Businesses Need to Know

Fall is in the air and businesses are wrapping up their third-quarter, this means that your Form 941 deadline is approaching. There were so many changes to Form 941 for the first quarter of 2024, that business owners and tax professionals alike needed extra time to adapt to the new form. 

The good news is that there are relatively few changes to Form 941 for 2024! If you filed this form successfully last quarter, you can do it again! 

Here is an overview of what small business owners should know before filing for the upcoming first-quarter deadline. 

Background information on Form 941

If this is your first quarter filing Form 941, welcome to the club! All employers that pay wages that are subject to income tax, social security tax, and Medicare tax are required to file Form 941 each quarter with the IRS. 

Once a business files their first 941 return, they are required to file every quarter regardless of whether they have paid wages. There are only a few exceptions to this rule, the main one being for seasonal employers. Seasonal employers are only required to file 941 for the quarters that they operate. 

Form 941 was once an easy and consistent form, but in the past year, the pandemic has totally changed how this form is formatted. The ability to claim COVID-19 tax credits is a great source of relief for businesses, however, calculating and reporting these credits on 941 complicates the filing process.

Compared to the complete overhaul of IRS Form 941 last quarter, the changes to the filing this quarter are totally major!

Changes to Form 941 for Q1 of 2024

  • The biggest change that employers should know is that COVID-19-related credits can no longer be claimed on Form 941.
  • Social Security wage base limit is now $168,600.
  • In 2024, the social security and medicare tax apply to Household employees who are paid $2,700 or more. Similarly, it is applicable to election workers who receive $2,300 or more.
  • After 2023, Forms 941-SS and 941-PR are discontinued. Instead, employers will use Form 941 to report their tax withholdings or, use new Spanish Form 941 (sp).

E-filing is the way to go!

We recommended it last quarter and we are recommending it again. When it comes to filing Form 941 in 2024, e-filing is the way to go! There was a time when Form 941 was easy enough to paper-file, but with all the additional calculations, slower IRS processing times, and quarterly updates, this is no longer the case. 

When e-filing, especially with ExpressE-File, you won’t have to worry if you are using the correct worksheet or if you have chosen the most updated version of the form to fill out.

We update our form process every quarter as the form changes, plus all of the worksheets you need are integrated into the 941 e-filing process. Leave your calculator in the drawer (where it belongs) because our automatic calculations do the work for you!

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To eliminate the chance of miscalculations and take the stress out of your quarterly filing, get started with ExpressE-File. You can e-file Form 941 for the third quarter for as low as $5.95!

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