Form 941-X – Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund

Greg Hatfield Updated by Greg Hatfield

This module contains Federal Form 941-X, Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund. Click the link to load the instructions from the IRS website.

Form 941-X instructions

"Which Process to Use" instructions on page 6 of the form pdf

The user must complete the originally reported column and the corrected column for any item requiring correction, and any necessary data on other pages, including explanations for the corrected values. For pages 2 and 3, users only need to complete lines that are being corrected. Note: if an entry is made in either Column 1 or Column 2, but the other column is left blank, or the line entry is the same in both columns (no change), then that line will not print.

See further instructions below for coronavirus-related changes requiring Worksheet 1.

Importing Payroll Data

Originally reported data from previously completed and saved Form 941 may be imported into Column 2, and into Schedule B if required (see Form 941-X instructions, as well as Schedule B instructions). Select desired year’s “Import Column 2” from the Import menu.

If the user has corrected the payroll data in the Payroll Grid, then the corrected data may be imported into Column 1, and into Schedule B if required (see form instructions), by selecting “Import Column 1” for the desired year from the Import menu.

When importing from the payroll grid, only 941-X Lines 6-8 and 11-13 will be imported for 2021 and 2022. Importing from the payroll grid is NOT recommended if you have coronavirus-related credits (2021/2022) during the quarter.

COVID-19 Credits

The IRS instituted a processing moratorium on new ERC claims beginning Sept. 14, 2023. See https://www.irs.gov/coronavirus/employee-retention-credit

See 941-X - Simplest Procedure to add ERC (Employee Retention Credit)

When importing 2021 or 2022, the option is given to import data to Column 1 from a completed and saved 941. Since coronavirus-related credit changes require a corrected Worksheet 1 and/or Worksheet 3, and some of the necessary information cannot be imported from the Payroll Grid, the following procedure is recommended:

  • If 941-X is open, save if desired and close that module.
  • Do NOT overwrite the original incorrect 941 (which you already filed). After making any corrections needed in the Employee checks/Payroll Grid, create a new 941 by opening the 941 Module for the quarter that needs correction. Choose “New File” when prompted (Caution: do not open the previously created 941).
  • Complete the new 941 with the CORRECT figures (note: you can IMPORT the corrected Payroll Data in the same manner as you normally would in preparing Form 941). Be sure to manually add any line entries needed to prepare a correct and complete 941, including the addition of any Employer SS deferral to Line 13b (2020 only), as appropriate.
  • If desired, print a paper copy (including the corrected COVID-19 Credit Worksheet 1 and/or Sch B, as desired). Caution: this corrected 941 is only for 941-X Column 1 import; it does NOT get filed or e-filed (since a 941 was already filed for the quarter). Save the new 941 with a recognizable file description (such as “Corrected 941 Qtr2 for 941-X import”). Close 941 Module. You are now ready to proceed with the 941-X.
  • To import the corrected 2021 941 into 941-X Column 1, from the Import Menu choose: “Import Column 1 (from 2021; proceed to see options)". Then select to import from “Form 941”. A dialogue box will open where you should choose your Corrected Version of Form 941. You may also import a 2022 Form 941 by choosing that option.

An additional dialogue will then ask if you want to also import Sch B. Schedule B will print as the fifth page only if entries have been made. See the form instructions to determine if an amended Schedule B is required.

Note: If sending only a Schedule B amendment (i.e., in response to an FTD deposit penalty), write "Amended" at the top of Sch B.

OTHER INSTRUCTIONS

Saved Form 941 data and corrected payroll data in the Payroll Grid may be imported for the current program year and the immediately previous year (if last year's program is installed). When importing from the previous year, the user must make sure that the import routine is correctly pointed at last year's database. To correct Form 941 for an other prior year, the user must manually enter the data.

You may use the “Cover Letter” Module (choose: “Form 941-X” from the “Other Form” dropdown menu on the 2nd screen of Cover Letter Module) to produce a Form 941-X Client Cover Letter, which includes the correct IRS Mailing Address for the 941-X. ADJUST the Balance due amount as needed (after considering deposits/payments already made, etc.)

See IRS instructions regarding any corrections to Sch B and whether it should be included. COVID-19 Credit Worksheet 1 (provided only in the 941 Module) is only for your own records.

How did we do?

CA Form DE 9ADJ - Quarterly Contribution and Wage Adjustment Form

Form 943-X – Adjusted Employer's ANNUAL Federal Tax Return for Agricultural Employees or Claim for Refund

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