Do you need to file Form 941 even if you have no payroll taxes or employees?

As an employer, if you have not paid your employees any wages for the quarter, your tax amount will automatically be zero. Even if your tax amount is zero, the IRS expects you to file your Form 941.

Yes, you are required to file Form 941 with the IRS even if you have no payroll taxes or employees. While manually entering zeros on the form can be time-consuming, using TaxBandits' 941 Zero reporting features, you can quickly complete your form 941 without having to go through each page of the form.

How to report zero tax in IRS Form 941 for this Quarter?

report zero tax for IRS Form 941 for this Quarter
  • Step 1: Choose the Tax Year and Quarter that you want to file.

  • Step 2: Once you choose the appropriate quarter, as usual, you will be redirected to Part 1 of Form 941.

  • Step 3: Under your business details, select the "Check here if no payments were made to employees in Q1, 2024" box.

    A pop up appears with the following conditions, choose the appropriate box which is applicable to you.

    • Line No:17 Check this box if your business has closed or you stopped paying wages
    • Line No:18 Check this box if you're a seasonal employer and you don't have to file a return for every quarter of the year
    • Part 4: Check this box if you want another person to discuss this return with the IRS

      The following Changes which will be enabled by default in your 941 Form:

      • Part 1 of Form 941 - Lines 1 to 15 will be marked as zero.
      • Part 2 of Form 941 - Deposit schedule will be set to minimum tax liability since there are no taxes to report.
      • Part 3 of Form 941 - Lines 19 to 25 will be marked as zero.

    After selecting this, you may have to select the options based on whether you have closed the business or a seasonal employer. You can also assign another person as a designee to discuss this form with the IRS. If any of the displayed options apply to you, leave them as such and continue filing.

  • Step 4: The summary of your Form 941 will be displayed, and the form will be audited.

  • Step 5: Sign the form using Online Signature PIN or Form 8453-EMP. By signing this form, you are authorizing TaxBandits to e-file your Form 941.

  • Step 6: Pay for our e-file services and transmit your 941 form to the IRS.

TaxBandits for Every Business

Note: If your business is closed and you’ve selected the appropriate option, this particular return will be considered your final 941 form.

After you transmit the form, you will receive an instant notification from the IRS stating your return status. Thus, you can always keep track of your status through TaxBandits. Get started with TaxBandits today!

Report Zero Taxes on Form 941 with TaxBandits Easily!

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  • Schedule-B, 8453-EMP, 8974, 941-V, 941-PR
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