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IRS Form 941 Schedule B for 2023 - Definition, Instructions, and Tips

Updated on September 04, 2023 - 10:30 AM by Admin, TaxBandits

If you are an employer, you are responsible for withholding federal income taxes, social security taxes, and Medicare taxes from each of your employee’s wages. The IRS Form 941 Schedule B for 2023 is used by semiweekly schedule depositors that report more than $50,000 in employment taxes. Businesses that acquire more than $100,000 in liabilities during a single day in the tax year are also required to begin filing this Schedule. Continue reading to learn more information about Schedule B (Tax Form 941).

1. What is IRS Form 941 Schedule B?

Schedule B accompanies Form 941, it’s a daily report of the employer's tax liability for federal income tax withheld from employees. It also reports the employer's share of Social Security and Medicare taxes withheld during the period. For each quarter, this withholding information has to be reported with the IRS using Schedule B Form 941.

Don’t use IRS Form 941 Schedule B to show federal tax deposits.

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2. Who must file Form 941 Schedule B?

Not every employer needs to file 941 Schedule B with their quarterly tax form 941. It’s specifically for employers who fall under these tax liability categories:

  • Reported more than $50,000 of employment taxes in the lookback period
  • Accumulated a tax liability of $100,000 or more on any given day in the current or prior calendar year

3. Why should you File Form 941 Schedule B?

If you are a semiweekly schedule depositor, you must complete form 941 Schedule B so that the IRS is able to reconcile your business’ wages and withholdings and process your tax payments.

4. How to file Schedule B with Form 941?

You have 2 different options for filing IRS Form 941 Schedule B:

  • 1. Paper Filing (By Mail): If you opt for paper filing, you will need to send both Form 941 and Schedule B via traditional mail. It's important to note that this method may take longer and requires careful attention to ensure accurate and timely delivery to the IRS.
  • 2.Electronic Filing (Recommended): The most convenient and efficient method is to file both your Schedule B and Form 941 electronically. This approach streamlines the process and ensures timely submission of your tax documents.

5. When is the Deadline to file Form 941 Schedule B?

There is no specific deadline for filing IRS Form 941 Schedule B. It must be filed with your Form 941 by the quarterly deadline, which is the last day of the month that follows the end of the quarter.

  • May 1st - First quarter Deadline (January, February, and March)
  • October 31st - Third quarter Deadline (July, August, and September)
  • July 31st - Second quarter Deadline (April, May, and June)
  • January 31st - Fourth quarter Deadline (October, November, and December)

6. Are there any penalties for not filing Form 941 Schedule B?

With failure to provide a 941 Schedule B, it may be impossible for the IRS to know exactly which penalty rates apply. Then the IRS will generally split the difference by assessing the average penalties. These are determined by distributing your total tax liability shown on IRS Form 941, line 12, equally throughout the tax period.

7. What are the new Form 941 updates for 2023 Tax Year?

The Revised Form 941 for 2023 has a few minor changes. First, the IRS revised Form 8974, Qualified Small Business Payroll Tax Credit for Expanding Research Activities. Small businesses can now use this form to claim a tax credit of up to $250,000.

Line 12 of Form 8974 has been modified to reflect this. Credit against the employer portion of social security tax has replaced the previous quarter's "Credit" terminology. Moreover, the form now includes Lines 13–17 for the first quarter of 2023.Worksheet 2 has been reintroduced by the IRS for the first quarter of 2023, and the first step of Worksheet 1 has been changed.

It is also important to note that the social security wage base limit for the 2023 tax year is now $160,200.

Visit https://www.taxbandits.com/form-941/revised-new-irs-form-941-for-q1-2023/ for more detailed information.

8. E-file Form 941 Schedule B with TaxBandits in Minutes

E-file Form 941 for 2023 with TaxBandits along with 941 Schedule B and get instant updates on the IRS status of your form.

Follow the below simple steps to e-file form 941 for 2023 & prior years (2022, 2021 & 2020).

  • Create a free TaxBandits account!
  • Choose "Form 941" and enter the details.
  • Review and Transmit to the IRS.

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