A Small Business Owner’s Guide to Filing Form 941 for Q2, 2022

Understanding your quarterly IRS filing requirements.

Running your small business is no easy feat! For many small business owners, this means juggling many roles and responsibilities. Some of them are more enjoyable than others, especially when it comes to maintaining your business’ IRS compliance. 

Nothing can be scarier to a small business than the potential for IRS penalties. These can build up over time causing crippling financial strain on your business. 

The best way to avoid this stressful situation is to stay on top of your filing requirements and deadlines and adhere to them. This is especially true of the payroll tax Form 941. It can be easy to forget, but your business is likely required to file it every single quarter. 

Here is a helpful overview of Form 941, which you can easily file in minutes with 123PayStubs!

Information Needed to E-file Form 941

This quarter, you will need the following information before you sit down to e-file your Form 941 with 123PayStubs. 

  • Wages paid
  • Tips that your employees reported to you (if applicable)
  • Federal Income tax you withheld from your employees’ paychecks
  • The employer and employee share social security and Medicare taxes
  • Qualified small business tax credit for researching activities
  • Deposit schedule information (ex. Are you a semi-weekly depositor?)
  • Nonrefundable and refundable portions of qualified sick and family leave wages claimed in previous quarters.

Are there any Tax Credits Available for Q2 of 2022? 

No, during the second quarter COVID-19 tax credits can’t be claimed for the current quarter. Although, employers may need to report credits claimed for wages in previous quarters when they were available.

All COVID-19-related tax credits have expired, this includes:

  • Credits for qualified sick and family leave wages
  • Employee retention credit 
  • COBRA premium assistance credits (expired for Q2, 2022)

Will Employers Need 941 Worksheets for Q2? 

Yes, it’s possible some employers may need worksheets this quarter. There will still be two worksheets for Form 941 for the second quarter of 2022. 

These worksheets can be used by employers that need to calculate and claim credits for applicable wages paid in previous quarters. These are the worksheets for the second quarter of 2022: 

  • Worksheet 1. Credit for Qualified Sick and Family Leave Wages Paid This Quarter of 2022 for Leave Taken After March 31, 2020, and Before April 1, 2021 
  • Worksheet 2. Credit for Qualified Sick and Family Leave Wages Paid This Quarter of 2022 for Leave Taken After March 31, 2021, and Before October 1, 2021 

How has Form 941 Changed for Q2 of 2022? 

While there are no major changes to the form for the second quarter of 2022, there are some notable changes. These changes are the result of the COBRA premium assistance credit expiring. 

This has affected several lines of Form 941, they no longer include the COBRA premium Assistance Credits. The following lines are now “Reserved for Future Use”:

  • Line 11e: Non Refundable portion of COBRA premium assistance credit (see instructions for the applicable quarter). 
  • Line 11f: Number of individuals provided COBRA premium assistance
  • Line 13f: Refundable portion of COBRA premium assistance credit (see instructions for the applicable quarter)

These lines were updated to exclude the lines above:

  • Line 11g: Total nonrefundable credits. Add lines 11a, 11b, and 11d.
  • Line 13g: Total deposits and refundable credits. Add lines 13a, 13c, and 13e

Ready to Get Started with 123PayStubs?

Did you know that in addition to offering simple and professional pay stubs, we also offer solutions for your quarterly filing with the IRS! 

With 123PayStubs, e-filing Form 941 is easy and accurate. Filers can take advantage of 123PayStubs’ accurate calculations, built-in audit, and instant filing status updates. 

Get started with 123PayStubs today and knock out your Form 941 filing in minutes! Just create a free account to begin!

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