Form 941

Your Form 941 will be processed by the IRS within one business day and the processing time may differ based on the IRS return volume. 

You will be notified by email once your return has been processed by the IRS if you have filed your return through 123PayStubs. Please make sure you pay the tax due amount on time if you’ve chosen payment methods other than Electronic Funds Withdrawal (EFW).

The tax due amount you pay to the IRS must be paid before the Form 941 filing deadline. And, the IRS accepts multiple payment methods. Use any one of the methods to pay the tax due:

• Electronic Funds Withdrawal (EFW): This option is available only for the taxpayers whose balance due is less than or equal to $2500. You just have to provide your bank account information, and the IRS will debit the tax due amount from your account directly in 1 or 2 business days after you e-file your Form 941.
• Electronic Federal Tax Payment System (EFTPS): Once you file your return with the IRS, you must log in to your EFTPS (Electronic Federal Tax Payment System) account and initiate the required payment. For an EFTPS deposit to be on time, submit the deposit by 8 p.m. EST the day before the date the deposit is due. If you don’t have an EFTPS account, you may have to create a new account, which will take up to 15 business days.
• Check or Money Order: After you file Form 941 with the IRS, you can send the tax due by check or money order. Please make sure you are enclosing the payment voucher along with your check or money order. If you e-file Form 941 with 123PayStubs, the payment voucher will be generated for you.
• Credit/Debit Card: The IRS uses standard service providers and business/commercial card networks, and your information is used solely to process your payment. 

Note: You may be charged a processing fee if you choose to pay the tax due using credit or debit cards.

If you choose a payment method other than EFW, it is your responsibility to pay the balance due to the IRS after you e-file your Form 941 through 123PayStubs. To avoid IRS penalties, pay the tax due by the deadline.

In case the IRS rejects your Form 941, you'll receive an email from 123PayStubs with the reason for rejection and instructions to correct the errors.

• You need to file Form 941-X if you discover an error on a previously filed Form 941.
• If you have paper filed your Form 941, you may never know your return status. 

So, it is always recommended to e-file your Form 941. With 123PayStubs, you will get instant updates on the status to the email address that you registered with us.

R0000-914-01: Form 941 that you have filed is a duplicate of a previously submitted electronic return.

Solution: 

The IRS rejected your tax return because you’ve already filed a Form 941 for the same reporting period. No action is needed from your end; however, contact the IRS to learn about the status of your previously filed return.

R0000-075-02: The Routing Number of the bank account that you entered while filing the return is incorrect. 
 

Solution: 
If your Form 941 has been rejected by the IRS due to an incorrect routing transit number (RTN), you may correct the return and retransmit it to the IRS by entering the correct RTN.

Here are the steps to correct and retransmit your return:

1. Sign in to your 123PayStubs account.
2. Go to Dashboard >> 94x Forms tab. From the left menu under the E-filed tab, you'll see your return filed.
3. Click View Errors against the rejected return.
4. Review the errors and click the Fix Me button.
5. Navigate to the IRS Payment section, select the payment method as Electronic Funds Withdrawal (EFW), and enter the correct bank account information including the routing number. You may also choose another payment method if you wish.
6. Review your form once and transmit it to the IRS.

Your return will be transmitted to the IRS, and once it's processed, you'll receive an email of its status.

A name control is a sequence of characters derived from a taxpayer’s name that is used by the IRS in processing the tax return filed by the taxpayer. It is important that the combination of name control and taxpayer identification number (TIN) provided on an electronically filed return match IRS’s record of name controls and TINs.

A name control is established by the IRS when the taxpayer requests an Employer Identification Number (EIN). The IRS creates the name control from the legal name listed on the Form SS-4, Application for Employer Identification Number.

When a return or extension is filed, the IRS checks whether a name/TIN combination is correct by matching it against a file containing all employer identification numbers (EIN) issued by IRS.

The name control listed on the return/extension is then compared to the name control on the IRS file. If it matches the name control in IRS records, it is considered to be correct.

Source: Internal Revenue Service (IRS)

R0000-901-01: The name control (EIN and the name associated with it) does not match with the IRS records. To learn more about name control, click here.

Solution:

• First, make sure you have entered the correct business name and EIN (you may have made a simple typo).
• If you believe you have entered the correct information, contact the IRS and confirm your business name and EIN against the IRS records. 

Note: If you have received your EIN recently, you may have to wait at least 10 business days for the EIN to be active.

Follow the steps below to retransmit your return:

1. Sign in to your 123PayStubs account.
2. Go to Dashboard >> 94x Forms tab. From the left menu under the E-filed tab, you'll see your return filed.
3. Click View Errors against the rejected return.
4. Review the errors and click the Fix Me button.
5. Update the correct business name and EIN.
6. Review your form once and transmit it to the IRS.

After you correct the error in your return and transmit it to the IRS, we’ll send an email to you on the status of your return.

The Form 941 Worksheet 4 for Quarter 3, 2021, will be used by employers to calculate their refundable and nonrefundable portions of the employee retention credit during the third and fourth quarters of 2021. This worksheet applies to qualified employees’ wages paid to employees after June 30, 2021.

Only one change has been made to the Form 941 Worksheets for Q3 2021. In the previous quarter, i.e., Q2 Form 941, Worksheet 2 was used to calculate the refundable and nonrefundable portions of the Employee Retention Credit (ERC). Worksheet 2 will no longer be used to calculate ERC for Form 941 of Q3 of 2021. Instead, Worksheet 4 will be used by employers to calculate their refundable and nonrefundable portions of the employee retention credit.

Yes, the IRS has revised Form 941 for Quarter 3, 2021. The changes in Form 941 for the 3rd quarter of 2021 are as follows:

Worksheet 4 - This worksheet will be used by employers to calculate their refundable and nonrefundable portions of the employee retention credit (ECR).

Line 18b - If you’re eligible for the employee retention credit solely because your business is a recovery startup business. Check this box if you are a recovery startup business. By doing this, you can claim a total of $50,000 for Quarter 3, 2021.

According to the American Rescue Plan Act of 2021, a new category has been added to Form 941 for the 3rd and 4th quarters of 2021, “Recovery Startup Business.” 

A recovery startup business is an employer that:

• Began its business on or after Feb 15, 2020, and
• Had average annual gross receipts of $1 million or less.

Recovery startup businesses may qualify for a credit of up to $50,000 per quarter. You must check Box 18b when you file Form 941 to let the IRS know you are a Recovery Startup Business.

Form 941, Worksheet 4 of Quarter 3, 2021, should be filed by employers who paid qualified employees’ wages after June 30, 2021. Employers should complete this worksheet to calculate the refundable and nonrefundable portions of the employee retention credit for the Q3 and Q4 of 2021.