Employers need to fill out form 941 Employers’ Quarterly Federal Tax Return and submit it to the IRS. Employers frequently make mistakes on form 941, which is why the IRS has announced form 941-X for correction.
Instead of panicking about your mistakes, focus on ways to amend your errors with the form 941-X and file a correction report.
What is Form 941?
Form 941 is the Employer’s Quarterly Federal Tax Return. Employers need to fill out this form on a quarterly basis to report income taxes and FICA taxes that have been withheld from employees’ pay.
This form includes the taxable amount withheld from employees for both FICA and federal incomes. It documents all the information you need to give the IRS about your payroll tax liabilities and payments. Remember that this form is not a payment form and that you need to submit it within 30 days after each quarter’s end.
What is Form 941-X?
Form 941-X is the adjusted Employer’s Quarterly Federal Tax Return. This form is used for correction incase made any mistakes are made on IRS form 941.
If there are mistakes with wages or compensations, income tax amounts withheld, taxable social security wages, business payroll tax credit, etc, you can fill out form 941-X. This form can be used to report errors on the total amounts mentioned in form 941.
How to use IRS Form 941-X
To file form 941-X corrections, you need to fill out the details such as identification number, company name, and address. Make sure you tick the box for the quarter you filed your form 941. Form 941 can only be reported for a single quarter, for filing a report for other quarters you need to fill out a separate form.
There are many aspects to take under consideration while filing form 941-X. To start with, you are required to mention whether the form you are filing is for the correction of an employment tax return or a claim for tax. You also need to answer the questions asked in detail mentioning the errors and reasons you are filling an “X” form. Make sure you enter all the correct details after a cross-check, to ensure they are accurate this time. Include your previously mentioned total amount, and the corrected amount, and state the difference with reasons.
Lastly, make sure you check out the instructions for form 941-X provided by IRS. And mail the form to the IRS directly. You can also check out the IRS website to find out where to mail your form.
Conclusion
Remember not to file this form if you missed your dates or forgot to file form 941 for your quarterly report. Instead, file form 941 with the complete details.
Form 941-X is a series of “X” forms which is for adjustments or correction of mistakes made on original forms.
