2023 Form 941- Instructions and Information

First, complete your basic Form 941 details in

Box 1 - Entering Employer Details - EIN, name, business name, and address.

Box 2 - Choosing Quarter - choose a quarter for which Form 941 is being filed.

Employer's Quarterly Federal Tax Return

1. Line 1

   Enter the number of employees, who got wages, tips, or other pay in the particular quarter

2. Line 2

   Enter the complete wages, tips, paid and other pay to your employees

3. Line 3

   Enter the federal income tax withheld from the employee’s paycheck

4. Line 4

   Check this box if wages are not subject to social security and medicare tax. And if it doesn't apply, please skip this line

5. Lines 5a, 5a(i) and 5a(ii)

   The taxable qualified sick and family leave wages taken after March 31, 2021 should be entered on 5a. On line 5a(i) and 5a(ii) employers should enter qualified sick and family wages that were given after March 31, 2020 for leave taken before April 1, 2021.

6. Line 5b-Taxable social security tips

   Enter the tips reported for all your employees during the quarter Line 5b = Column 1 x 0.124 = Column 2

7. Line 5c - Taxable Medicare wages & tips

   Enter the wages, tips, that are subject to medicare tax
   Line 5c = Column 1 x 0.029 = Column 2

8. Line 5d - Taxable wages & tips subject to Additional Medicare Tax withholding

   Enter all the taxable wages & tips subject to Additional Medicare Tax withholding Line 5d = Column 1 x 0.009 = Column 2

9. Line 5e - Total social security and Medicare taxes

   Sum of Column 2 from Lines 5a, 5a(i), 5a(ii) 5b, 5c and 5d.

10. Line 5f - Section 3121(q) Notice and Demand-Tax due on
    unreported tips

    Enter the tax due that you have received from the Section 3121(q)
    Notice and Demand

11. Line 6 - Total taxes before adjustments

    Enter the sum of line 3, 5e, and 5f

12. Line 7 to 9 - Tax Adjustments

    Enter the Adjustment for a fraction of cents (Line 7), sick pay (Line 8), tips and group life insurance (Line 9)

13. Line 10 - Total taxes after adjustments

    Enter the sum of line 6 to line 9

14. Enter the qualified small business payroll tax credit for increasing
    research activities

    Enter the amount calculated in Form 8974 and attach.

15. Line 11b - Enter the nonrefundable portion of credit for qualified sick and family leave wages for leave taken before April 1, 2021
16. Line 11c - Enter the nonrefundable portion of employee retention credit
17. Line 11d - The nonrefundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021
18. Line 11e - Enter the nonrefundable portion of COBRA premium assistance credit
19. Line 11f - Enter the number of individuals provided COBRA premium assistance
20. Line 11g - Enter the total nonrefundable credits by adding lines 11a, 11b, 11c, 11d, and 11e
21. Total taxes after adjustments by subtracting line 11g from 10
22. Line 13a

    Total deposits for this quarter, including overpayment applied from a prior quarter and overpayments applied from Form 941-X, 941-X (PR), 944-X, or 944-X (SP) filed in the current quarter

23. Line 13b - Reserved for future use

    This was previously used for entering deferred amount of social security tax. Now it is reserved for future use.

24. Line 13c - Refundable portion of credit for qualified sick and family leave wages from Worksheet 1

    Use Worksheet 1 to calculate the refundable portion of credit for qualified sick and family leave wages and enter the amount.

25. Line 13d - Refundable portion of employee retention credit
    from Worksheet 1

    Enter the amount of refundable portion of employee retention credit which was calculated on worksheet 1.

26. Line 13e - Total deposits and refundable credits

    Enter the total refundable credits by adding 13a, 13c and 13d.

27. Line 13f - Total advances received from filing Form(s) 7200
    for the quarter

    Enter the total amount of advances received from filing Form 7200.

28. Line 13g - Total deposits and refundable credits less advances

    Subtract line 13f from line 13e and enter the amount.

29. Line 14- Balance due

    Enter the difference, If line 12 is more than the line 13g.

30. Line 15- Overpayment

    Enter the difference, if line 13g is more than line 12. Choose either box, Apply to the next return or send a refund as you prefer.

Part 2 - Deposit schedule and tax liability for
the quarter

1. Line 16

   Tax Liability for the Quarter. If Line 12 on your Form 941 was less than $2,500, the previous quarterly return was less than $2,500, and there was no next-day deposit obligation for $100,000, you can check the box on Line 16 and move to Part 3. Line 16 is also where you will determine if you are a semiweekly or monthly depositor.

   Click here to know more about IRS Form 941 line by line Instructions

Part 3 - About your business

1. Line 17 - If your business has closed or you stopped paying wages

   If your business was closed or you stopped paying wages in the quarter, check on line 17 and enter the final date when you paid wages.

2. Line 18 - If you are a seasonal employer and you don’t have to file a return for every quarter of the year

   If you are a seasonal employer and don’t have to file Form 941 every quarter, then check the box underline 18.

3. Line 19 - Qualified health plan expenses allocable to qualified sick leave wages

   Enter the qualified health plan expenses allocatable to qualified sick leave wages and also need to enter this total on Worksheet 1 - Step 2, line 2b.

4. Line 20 - Qualified health plan expenses allocable to qualified family leave wages

   Enter the qualified health plan expenses allocatable to qualified family leave wages and also need to enter this total on Worksheet 1 - Step 2, line 2f.

5. Line 21 - Qualified wages for the employee retention credit

   Enter the qualified wages for the Employee Retention Credit and also need to enter this total on Worksheet 1 - Step 3, line 3a.

6. Line 22 - Qualified health plan expenses allocable to wages reported on line 21

   Enter the qualified health plan expenses for the Employee Retention Credit. This total is also entered on Worksheet 1- Step 3, line 3b.

7. Line 23 - Credit from Form 5884-C, line 11, for this quarter

   Enter the credit amount from the line 11 of Form 5884-C

8. Line 24

   Enter the Qualified health plan expenses allocable to qualified sick leave wages reported on line 23

9. Line 25

   Enter the amounts under certain collectively bargained agreements allocable to qualified sick leave wages that are reported on line 23

10. Line 26

    Enter the qualified family leave wages for leave taken after March 31, 2021

11. Line 27

    Enter the qualified health plan expenses allocable to qualified family leave wages reported on line 26

12. Line 28

    Enter the amounts under certain collectively bargained agreements allocable to qualified family leave wages reported on line 26

First, complete your basic details in

Check “Yes”, If you wish to discuss this return with the IRS and provide the designee name and phone number. Also, enter the 5 digit pin to use while talking with the IRS.

Check “No”, if you don’t wish to discuss it.

Once each and every part is completed, you are required to sign Form 941.

The following persons are authorized to sign the return for each type of business entity.

• Sole proprietorship: Individual who owns the company
• The corporation or an LLC treated as a corporation: President, vice president, or another principal officer
• Partnership or an LLC treated as a partnership Partner, member, or officer
• Single-member LLC: Owner of the LLC or a principal officer
• Trust or estate: The fiduciary

Paid Preparer Use Only

• Form 941 must be signed by a duly authorized agent of the taxpayer if a valid power of attorney has been filed.
• If the form is prepared by the paid preparer, enter their information such as name, signature, address, PTIN, and contact number.

Visit, https://www.taxbandits.com/form-941/form-941-instructions/ to learn more about IRS Form 941 line by line Instructions.