If you own a business and have workers in your organization, then you must file IRS Form 941. This form defines your payroll tax liability filed by the employer. That describes whether the organization pays the proper tax or not. Sometimes it becomes difficult for the employer to compile this report alone, which causes trouble. Therefore, QuickBooks Online is the best solution for this issue as it provides automatic filing of 941 forms. Here in this blog, we will discuss what the IRS 941 form is, does QuickBooks Online automatically files 941, and what the steps are to create a 941 file.
What is an IRS Form 941?
IRS Form 941 is the form that every employer has to fill in every three months or quarterly. This form provides the information about your business including how much wages you’ve provided to the employees and how much money you hold from their wages for the federal income tax. This form helps the IRS to keep track of the business’s tax participation and whether proper tax is paid by the employer or not. You can fill this form using QuickBooks as the QuickBooks 941 is prepared, filled and filed by QuickBooks effectively without having errors.
Does QuickBooks Online Automatically File 941?
Yes, it’s true that QuickBooks Online automatically files 941 but there is a condition that the user should have a subscription to QuickBooks and he has to use QuickBooks Online payroll with the automatic tax filing feature on. If you have completed these two conditions, then 941 in QuickBooks can be automated and filled and filed every 3 months by QB. QuickBooks automatically files form 941 to the IRS and informs you when it is accepted.
Even if you have not turned on the automatic filling feature in QuickBooks, it still fills the 941 form for you from your payroll information but can not file it directly to the IRS and unless you have turned on automatic filling. You have to file 941 QuickBooks manually yourself.
Benefits of IRS Form 941 in QuickBooks
There are many benefits of using QuickBooks for 941 forms, some of which are given below:
- Time-Saving Automation: In QuickBooks, data entry and tax filings are automatic and it automates the payroll tax calculation for you with accurate results.
- Error Reduction: Built-in checks ensure accuracy.
- Simple E-filing: You can directly file 941 forms electronically to the IRS, you do not have to do paperwork for it. 941 QuickBooks makes filing easy and effective.
- Compliance Support: QuickBooks fulfills the requirements of the IRS by ensuring timely tax and form submission to it.
- Maintains Accuracy: QuickBooks maintains the accuracy of the 941 form reports. By pulling data from your payroll records which reduces errors.
- Reduces Risk of Penalties: QuickBooks ensures timely filing and accurate reporting which prevents us from the penalties of the IRS.
Steps to Create Form 941 in QuickBooks Online?
Follow these steps to create Form 941 in QBO:
- Verify that your payroll setup that you have a QBO payroll subscription and that you have completed your company tax setup.
- Then sign in to QuickBooks Online
- After signing in you will see the homepage where you have to find the taxes option in the top left corner.
- After that click on the payroll tax.
- Then you will see the fillings option click on that button.
- After that, under the form section look for Quarterly forms and find Form 941, employers’ quarterly federal tax return.
- Select the quarter you want to file for example, (Jan to Feb or Apr to Jun).
- There, you have to review Form 941 details like employee counts, wages paid, etc.
- If you want to e-file a form, then go for the E-file form 941 option and if you want to manually file, then choose the view or print option.
- For the E-file form, submit it electronically through QBO Payroll.
- For manual filing, save the PDF of the form and then print and mail it to the IRS.
- After E-filing, you will get an on-screen confirmation number. You can see the status under the filings tab once it is confirmed by the IRS.
How to file 941 in QuickBooks Online?
- In your QuickBooks Online dashboard, you will see the taxes section in the top left.
- In the Payroll tax, find the Filing tab.
- After that, you have to find and open Form 941.
- Find Form 941 and click on the View/edit or Create Form option.
- Review all the data present in the form, as QuickBooks automatically fills the data from the payroll data.
- After that, click on the Submit to IRS to file directly through QuickBooks. If you want to file it manually, you click on the print and mail to send the form manually.
- Make sure that your e-file and e-pay options are turned on so that next time the filings can be submitted electronically.