The IRS has released an updated Form 941 for 2021. This Spring, employers will be filing the new form for the first time to meet their first quarter deadlines for 2021.
The best option to stay compliant is to get prepared for IRS changes. Here is everything businesses need to know about the new Form 941.
Form 941 Review
Employers use Form 941 to report amounts withheld from employee paychecks for Social Security, income, and Medicare taxes. Since it’s so closely tied to tax law, COVID-19 tax relief has had a major impact on Form 941 and prompted a variety of changes this past year.
Form 941 Changes For 2021
The IRS updated Form 941 for 2021 to stay in step with the end of the deferment period for Social Security taxes. This COVID-19 tax relief option allowed employers to defer employer and employee portions of Social Security taxes.
Now that this initiative has come to an end, the Social Security Administration (SSA) is collecting deferred payroll taxes. The collection period is from January to December 2021. The IRS has updated Form 941 so it no longer asks employers to report their deferral decisions.
Line-by-Line Form 941 Changes
Let’s take a look at what to expect when you file Form 941 for the first quarter. Here are all the lines that the IRS has changed and the information employers need to report for 2021.
Line 13b used to be for reporting deferred amounts of Social Security taxes. This option ended in December 2020. Now Line 13b is reserved for future use, so employers can just skip it.
Line 13e was for reporting total deposits, deferrals, and refundable credits. Now, with the end of the deferral period and Line 13b being removed, employers can no longer report deferrals. Businesses can still use this line to report their total deposits and refundable credits.
Line 13g used to be for reporting deferrals. Now, you can use this line to report total deposits and refundable credits, excluding advances.
Line 24 was for reporting the employee portion of the deferred amount reported on Line 13b. Now, this line is reserved for future use.
For more on Form 941 for 2021, visit this blog.
When Is Form 941 Due
As you get prepared for Form 941 changes for 2021, it’s important to know when you’ll need to file the new form for your business. The 1st Quarter Form 941 deadline is coming up fast. Here are all the quarterly due dates for the 2021 tax year:
1st Quarter Form 941 Deadline: April 30, 2021. E-File Now
2nd Quarter Form 941 Deadline: August 2, 2021.
3rd Quarter Form 941 Deadline: November 1, 2021.
4th Quarter Form 941 Deadline: January 31, 2022.
How to File the New IRS Form 941 for 2021
As always, the IRS recommends e-filing as the best method for employers to meet their deadlines. ExpressEfile is supporting the most current version of Form 941 and helping businesses adjust to IRS changes.
Employers get U.S.-based email support, automatic error checks, and instant updates on their return’s status when they e-file Form 941 with ExpressEfile. Visit this blog for more tips and tricks to avoid IRS penalties when you file Form 941 online.
It’s important to give your business plenty of time to file Form 941 this quarter. We’re here to help you meet your April 30, 2021 Form 941 deadline easily!