Form 941 records payroll tax liability and deposits. These forms are filed quarterly in accordance with the IRS laws and regulations. The IRS uses these forms to reconcile federal tax deposits that each employer makes.
If you find that you have filed a 941 with errors, you can amend the filing with a Form 941-X. This corrects any errors that may have been overlooked when you originally filed. Correcting your Form 941 filing mistake is a fairly easy task, and we have a resource dedicated to helping you through it.
Common examples of a 941 filing error include math inaccuracies and miscalculations, incorrect wage reporting, and reported tip errors. If you’ve accidentally committed any of the above, you’re certainly not alone. That part of the reason why the IRS has its own form to make the corrections.
Form 941-X can be downloaded from the IRS website at this link. Form 941-X is a stand-alone form that correlates with the employment tax return that you are amending.
When you find the 941 filing error, it is important to amend it as soon as possible. Don’t wait until the end of the quarter, when you’ll file your next 941.
Are there any penalties?
The IRS states the following regarding this matter:
Generally, your correction of an underreported amount will not be subject to a failure-to-pay penalty, failure-to-deposit penalty, or interest if you:
- File on time (by the due date of the quarter in which you discover the error)
- Pay the amount shown on line 22 by the time you file
- Form 941-X
- Enter the date you discovered the error
- Explain in detail the grounds and facts relied on to support the correction
If you need more information about the 941-X and possible penalties, we recommend visiting this webpage from the IRS. If you’re concerned about a 941 late payment penalty, we have a resource to give you the answers you need.
How can I avoid needing future 941 filing corrections?
Nearly all 941 filing errors come from human mistakes and miscalculations. If you want to ensure both efficiency and accuracy in your next quarterly filing, we recommend investing in a software solution. This will allow you to make accurate calculations, given you input the correct information. Even if you end up entering incorrect information, a software tool will allow you to easily create and file a 941-X.
1099-etc has the products you need to do just that. AMS Payroll can help with the calculations and filing, but you’ll also be able to print checks, store data, and facilitate direct deposit processing. Plus, it’s an affordable alternative to hiring an accountant or purchasing comparable software. Check out our free demo to see how it works.