Overview
The first quarter of 2024 has ended, and businesses nationwide are preparing for the submission of Form 941, the Quarterly Federal Tax Return. This year, however, brings noteworthy changes and updates from the Internal Revenue Service (IRS) worth highlighting. Starting with TY 2024, Form 941-PR and Form 941-SS are discontinued and will be replaced by Form 941 (sp). Form 941(sp) is the same 941 form available in Spanish language. The IRS has introduced this simplified method for tax reporting in Puerto Rico and U.S. territories. According to IRS, this change will standardize forms, improving the tax filing process and reducing time and effort required.
There have been some other major changes to 941 forms, so let’s find them out one-by-one.
New Changes to Form 941 for the 2024 Tax Year
The IRS has introduced updates to Form 941 for the 2024 tax period. Employers must take note of these adjustments before completing and submitting the form.
- The social security tax rate is 6.2% each for the employee and employer. The IRS has increased Social Security wages to $168,600 from $160,200.
- Credits related to COVID-19 for qualified sick and family leave wages can no longer requested on Form 941.
- Household workers earning $2,700 or more in 2024 are subject to Social Security and Medicare taxes on their wages.
- Form 941-SS and Form 941-PR are discontinued after the fourth quarter of 2023; instead, employers in U.S. territories should use either Form 941 or the new ‘Form 941 (sp): Declaración del Impuesto Federal TRIMESTRAL del Empleador’ for Spanish instructions.
Form 941-PR: IRS Form 941-PR was used to report quarterly Federal taxes till tax year 2023. If you paid wages, or if your employees reported tips to you, or if you withheld Federal income tax, social security tax, and Medicare taxes in Puerto Rico, you were required to file this form.
Form 941-SS: IRS Form 941-PR was used to report quarterly Federal taxes till tax year 2023. If you paid wages, or if your employees reported tips to you, or if you withheld Federal income tax, social security tax, and Medicare taxes in American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands, you were required to file this form.
Revised Form 941 for Tax Year 2024
For 2024, certain lines on Form 941 have been revised:
Part 1: Lines 11a to 11g have been replaced by Line 11, which now includes information about Form 8974 (Payroll tax credit for Qualified small business for increasing research activities).
Lines 13a to 13i have been eliminated in favor of a new Line 13, which consolidates information on total deposits for the quarter, encompassing overpayments applied from previous quarters and adjustments from Form 941-X, Form 941-X (PR), Form 944-X, or Form 944-X (SP) filed in the current quarter.
In Part 3, Lines 19 to 28 have been removed entirely.
Note: Ensure to use the March 2024 version of Form 941 for reporting first-quarter taxes of 2024; older versions are not valid for this year.
To know about the 941 deadlines, penalties, and exceptions, read this blog.
How to file Form 941 for Q1 with Tax1099?
To file your 941 forms with ease, follow these 3 easy steps:
Step 1: Login/ Sign-Up
To get started, you can create your free account with Tax1099 by clicking here.
Step 2: Import the Data
Quickly import your payroll and tax-sensitized data to Tax1099 manually or using Excel/ accounting software.
Step 3: Review and Submit
Validate your details, make a secure payment and submit your forms directly to the IRS.
What are you waiting for? File your Form 941 Online today with Tax1099 and avoid paying hefty penalties.
