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13658: e-Filing Forms 94x - Setup (CWU)

CWU 94x

CWU: What steps must I take before I can e-file 94x series returns?

As prerequisites, you must

  • have activated CWU with a valid CWU Serial #
  • be an IRS e-File Provider (have an EFIN) with specific authority to e-file employment tax returns.

See "Overview - e-Filing Federal Employment Taxes - Forms 94x (CWU)" in Related Links below, or video CWU e-Filing 94X Returns

Determine Your Provider Role.

Determine, for each client, if you will be filing as a

Regardless of your provider role, the IRS requires use of a PIN (personal identification number) to sign 94X series tax returns that are e-filed. Business Taxpayer and Reporting Agent PINs are IRS-issued after you make application. See the PIN application articles in Related Links below. A PIN is a confidential electronic signature used by the person having authority to sign the return. Take appropriate action to adhere to all IRS guidelines regarding its security and use. For a demonstration, watch the video CWU 94x PIN Setup (EROs).

Set Up CWU to e-File 94x Returns.

Firm Setup

In the E-File Selections area of the Setup Firm Information window (Firm > Firm Info./Global Settings) -

  1. Enter the basic demographic information about your firm. The minimum needed is Firm Name, Contact, Address 1 (and Address 2 if applicable), City, State, ZIP, Phone, & EIN.
  2. Enter the information which enables you to connect to Drake EF servers to actually do the electronic filing – EFIN, Acct No (Drake Account Number), and Drake Pwd (Password).
  3. Enter the appropriate fields under E-File Selections.
    1. Check E-File 94x to electronically file available Forms 94x for one or more of your clients.
    2. Enter your ERO PIN only if you will be filing on behalf of one or more of your clients as an ERO.
    3. Enter your Reporting Agent PIN only if you will be filing on behalf of one or more of your clients as a Reporting Agent.
    4. Enter your Name Control - this is required for e-filing regardless of your provider role. It must be entered or the transmission file will not be created for any 94x return prepared. (Refer to section 3.11 Name Controls in IRS Publication 4163.) The IRS assigns a value based on the legal name of the business and will reject a 94x transmission if this value does not match what the IRS has “on file.” Call the IRS at (800) 829-4933 (Business and Specialty Tax Line) or (866) 255-0654 (e-Help Desk) for assistance with the appropriate value.
  4. If you made any changes on the screen, click the Save button.

Important Considerations.

  • To e-file on behalf of businesses other than your own, you must be an ERO, Reporting Agent, or both. To e-file for some clients as an ERO and some as a Reporting Agent, check the E-File 94x box and enter your ERO PIN, Reporting Agent PIN, and Name Control.
  • To e-file solely for your own business and no other (client), check the E-File 94x box and enter your Name Control. (Do not enter an ERO PIN or Reporting Agent PIN.) In the client file for your business, follow the Client Setup instructions (below) to e-file as the Business Taxpayer.

Client Setup

In the E-File Client 94x area on the Client Setup window (Setup > Client Information > EF Options), for each client for whom you will transmit -

Open the client and open the Client Setup window. Select E-File Client 94x. Select the appropriate transmitter designation and required entry fields will become available for data input. With this selection saved, any saved Form 94x CWU includes a file transmission record and forms that are watermarked to help prevent duplicate filing by paper. (If this box is not marked, the form must be paper-filed.)

Transmit as ERO

If you will be an Electronic Returns Originator (ERO) for the client, select Transmit as ERO. For more info, see the IRS ERO Technical Fact Sheet. An ERO submission requires the Name Control, the Tax Payer 5-Digit PIN for E-File, and the Signature Name.

Transmit as Reporting Agent

If you are a Reporting Agent for the client, select Transmit as Reporting Agent. For more info, see the IRS RA Technical Fact Sheet. A Reporting Agent submission requires the Name Control and the Signature Name.

Transmit as Business Taxpayer

If you are transmitting as the taxpayer, select Transmit as Business Taxpayer. For more info, see the IRS Taxpayer Technical Fact Sheet. A Business Taxpayer submission requires the Name Control, the Tax Payer 10-Digit PIN for E-File, and the Signature Name.

The employer’s authorized signer must apply to the IRS for a Business Taxpayer PIN. For more information, see "94X PIN Applications - Business Taxpayer PIN (CWU)" in Related Links below.

Name Control

The IRS assigns each registered entity a Name Control based on the legal name of that business. It is required for 94x transmission and will result in a reject if it does not match what the IRS has “on file” for that entity.

Call the IRS Business and Specialty Tax Line at 800.829.4933 or the IRS e-Help Desk at (866) 255-0654 for assistance with the appropriate value.

Payments. If you will be making payments along with a client’s 94x return, the 94x Online Payment tab on the Client Setup screen also must be completed (Setup > Client Information).

Enter the financial institution’s Routing Transit Number and Bank Account Number from which the payment will be withdrawn.

Indicate the type of account (Payment From Checking Account or Payment From Savings Account) and enter your Tax Preparer Day Time Phone Number.

Change the Requested Payment Date, if needed, to the date you want the IRS to make the withdrawal from the account. To avoid penalties on late payments do not exceed the date on which taxes are due.

For quarterly forms, revisit this screen to change and save a new date before creating the form.

The IRS limits the amount which can be paid with a 94x electronic return. If the Balance Due line on the form exceeds the direct payment threshold ($500 for Form 940, $2500.00 for other 94x forms), the transmission file is not produced and the form itself is not watermarked, on the assumption you will paper-file. If you want to e-file, the Balance Due line must be reduced to or below the direct payment threshold. You can do this by making an electronic payment (making a tax deposit) for an appropriate amount so that, when the return is created, the Balance Due amount is zero or some value that does not exceed the direct payment threshold. In other words, in creating the return, when you enter an amount on the Total deposits line (for example, Form 941, Line 10) and press the Tab key, the Balance Due line (for example, Line 11 of Form 941) is recalculated to consider the tax deposit.

The IRS requires payments (as deposits for taxes due) to be made electronically, and provides electronic payment services via the Electronic Federal Tax Payment System (EFTPS). Deposits through EFTPS must be initiated by 8 p.m. EST the day before the date due or the deposit will not be “on time”.

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