E-Filing Form 941 for the Fourth Quarter of 2021

The new year is only 2 days away! A new year brings with it many changes and new beginnings! January will also bring with it many important IRS filing deadlines such as Q4 Form 941, Employer’s Quarterly Federal Tax Return. Now is the time to start preparing for this deadline and PayWow is here to help you do so! 

What is Form 941? 

Form 941 is an employer’s quarterly federal tax return. Employers use this form to report income taxes, Social Security tax, or Medicare tax deducted from employee paychecks. Form 941 is also used to pay an employer’s part of Medicare tax or Social Security tax. 

Who Needs to File Form 941? 

Any employer that paid employees wages that were subject to federal income taxes, Medicare taxes, and Social Security taxes. 

What is the Q4 filing deadline for Form 941? 

2021 Q4 Form 941 is due to the IRS by January 31, 2022. 

If your business fails to file Form 941 on time, you may be subject to penalties from the IRS. To learn more about these penalties visit here!

What is Form 941 used to report? 

Employers must file Form 941 quarterly to report the following amounts:

  • Wages you’ve paid 
  • Tips your employees reported to you
  • Federal income tax withheld 
  • Both the employer and the employee share of social security and Medicare taxes
  • Additional Medicare Tax withheld from employees
  • Current quarter’s adjustments to social security and Medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance
  • Qualified small business payroll tax credit for increasing research activities
  • Credit for qualified sick and family leave wages
  • Employee retention credit 
  • Credit for COBRA premium assistance payments
  • Total advances received from filing Form(s) 7200 or the quarter 

Exceptions for Filing Form 941

As an employer, after you’ve filed your first 941, you must file a return for each quarter, even if you have no taxes to report. However, if you filed a final return or one of the following exceptions listed below applies to you, you may be exempt from filing Form 941: 

  • If you received a notification to file Form 944 annually, you do not need to file Form 941
  • Seasonal employers don’t have to file a Form 941 for quarters in which they have no tax liability because they have paid no wages. 
  • Employers of household employees don’t usually file Form 941
  • Employers of farm employees don’t file Form 941 for wages paid for agricultural labor 

Are there any changes to Q4 Form 941 for 2021? 

We have some good news! There are no changes to Form 941 for the fourth quarter. The process for reporting taxes, calculating sick leave wages, family leave wages, and employee retention credit remains the same as it was for the 3rd quarter of 2021 Form 941. 

Here is a quick overview of the changes made to Form 941 in the previous quarter: 

  • Instead of using Worksheet 2 to calculate the Employee Retention Credit (ERC), employers must use Worksheet 4
  • Form 941 Worksheet 4 is designed to help employers calculate the nonrefundable and refundable portions of the Employee Retention Credit for qualified wages paid after June 30, 2021. 


Meeting your quarterly filing requirements is simple with PayWow! PayWow will ensure your Q4 Form 941 is filed properly and on-time to the IRS!

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