Form 941 E-filing Tips Your Small Business Needs!

If your business needs to file Form 941 for quarter three, 123PayStubs is here to help!

The year is coming to a close and so is the third quarter of the tax year! This means it’s almost time to file Form 941, the Employer’s Quarterly Federal Tax Return. 

Here’s what you need to know about Form 941 and some tips to make filing your return simple and efficient! 

When Should You File Form 941

Form 941 must be filed quarterly. The third quarter filing deadline for Form 941 is November 01, 2021. 123PayStubs is now accepting e-filing of Form 941 for the third quarter. We suggest giving yourself ample time to file. If you run into any issues or need assistance with filing, 123PayStubs is here to help. 

Who Must File Form 941?

Businesses typically need to file Form 941 if they have employees and withhold income tax, Social Security, and Medicare tax from their wages. If you pay wages subject to federal income tax withholding or social security and Medicare taxes, you must file Form 941 quarterly to report the following amounts:

  • Wages you’ve paid
  • Tips your employees reported to you
  • Federal income tax you withheld
  • Both the employer and the employee’s 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 for the quarter

E-File Your Return

Although you can file a paper return for Form 941, the IRS recommends e-filing. When you e-file, your return will be processed more quickly and it is more secure than paper filing. 123PayStubs is an IRS-authorized e-filing provider that business owners can trust to help them submit their returns on time and accurately. When you e-file Form 941 with 123PayStubs, your return will be processed quickly and you will receive your filing status instantly. You will also be able to ensure your return is error-free with the help of our built-in audit checks. Once your return is submitted, you will be able to access copies of it anytime as they will be stored securely within your account. Use e-filing to your advantage and spend less time worrying about taxes and more time running your business!

Apply for Your EIN

An employer identification number (EIN) is a unique 9 digit number assigned to all corporations, partnerships, and some sole proprietors. If you’re filing your tax return or paying your federal taxes electronically, a valid EIN is required at the time the return is filed or the payment is made. If a valid EIN isn’t provided, the return or payment won’t be processed. 

Businesses needing an EIN must apply for a number and use it throughout the life of the business on all tax returns, payments, and reports.

If you don’t have an EIN, you may apply for one online by visiting You may also apply for an EIN by faxing or mailing Form SS-4 to the IRS.

Who Can Sign an E-filed Return?

In order for Form 941 to be accepted, there must be an authorized signature present. The following persons are authorized to sign the return for each type of business entity.

  • Sole proprietorship—The individual who owns the business.
  • Corporation (including a limited liability company (LLC) treated as a corporation)—The president, vice president, or other principal officer duly authorized to sign.
  • Partnership (including an LLC treated as a partnership) or unincorporated organization—A responsible and duly authorized partner, member, or officer having knowledge of its affairs.
  • Single-member LLC treated as a disregarded entity for federal income tax purposes—The owner of the LLC or a principal officer duly authorized to sign.
  • Trust or estate—The fiduciary.

Avoid Paying Penalties 

Don’t let your business fall victim to late-filing penalties! E-file Form 941 on time and easily with 123PayStubs. You can avoid paying penalties if you do all of the following:

  • Pay your taxes when they’re due
  • Fully complete and file Form 941 online or on paper on time
  • Report any and all tax liability as accurately as possible
  • Send valid checks to make tax payments
  • Send completed W-2 Forms to employees
  • File Copy A of W-2 Forms and Form W-3 (if paper filing) with the SSA on time and accurately 

Amended Returns and E-filing 

If your Form 941 is rejected, you will need to submit Form 941-X. Form 941-X is the Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund. This form is used to correct any errors made on Form 941. If you find an error on your previously filed Form 941, you must correct this error using Form 941-X. The following information can be corrected using Form 941-X:

  • Wages, tips, and other compensation
  • Income tax withheld from wages, tips, and other compensation
  • Social Security wages and tips that are taxed
  • Medicare wages and tips that are taxed
  • Taxable wages and tips subject to Additional Medicare Tax withholding
  • Credits for COBRA premium assistance payments

With 123PayStubs you can easily use IRS Form 941-X to amend your original 941 and remain in good standing with the IRS. Using 123PayStubs you can download and fill out Form 941-X for free.


With 123PayStubs, meeting your Form 941 deadline is quick and easy! 123PayStubs offers valuable resources and tools that ensure your e-filing process is accurate, secure, and efficient. 

After you’ve met your quarterly and annual filing requirements, you can also generate professional and accurate pay stubs with 123PayStubs. You can choose from a variety of free pay stub templates and generate your pay stubs in just 3 simple steps. Get started today!

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