If you intend to e-file 94x forms, before you create the returns, review "Overview - e-Filing Federal Employment Taxes - Forms 94x," and the articles and IRS sources referenced there.
Before a 94x return can be e-filed, the printed form must be created. Prior to creating the first one, e-file setup is necessary.
Client Write-Up (CWU) is approved by the IRS to reproduce Forms 940, 941, 941 (PR), 941-SS, 941-X, 941-X (PR), 943, 943-X, 943-X (PR), 944, 944 (PR), 944-X, 945, and 945-X for paper-filing.
For more information, which includes quarter end, due dates, and penalties, refer to the official instructions for the specific form(s) found on the IRS’ Forms and Publications webpage, see Publication 15 (Circular E), or visit IRS.gov and enter “employment taxes” in the search box.
Before creating Form 941 or other 94x returns, you must set up your client and your preparers, and decide whether to select certain 94x options.
Client Write-Up (CWU) will provide access to 94x forms only under the following circumstances:
- CWU must be activated with a valid CWU Serial #. This functionality is not available in “demo” mode.
- Your CWU software must be at the latest update release. See "Do I Have The Most Recent CWU Update?" in Related Links below.
Setting up CWU for 94x forms
- Open the Client Setup screen (Setup > Client Information) - All identifying information about the employer whose 94x form will be filed must be furnished. If provided on the following screens, this data will auto-populate each time the form is created.
- Contact Information tab.
- Employer Information required on all 94x form is the employer’s legal Name, mailing address (Address 1, City, State, and Zip), and EIN. On the form itself, there is not a line for Address 2, but it is included after the Address 1 value as long as it will fit on the printed line. The employer’s Trade Name is included on most 94x forms and is optional.
- If Contact Person, Contact Title, and Phone 1 are entered, they appear in Part 5 of the form unless a 94x Preparer has been setup and linked to the form. (See "Firm Information" later in this article).
- The Business Information tab is completed to allow the software to determine additional information about the business.
- Employer’s business information - The IRS uses two different sets of deposit rules to determine when businesses must deposit their social security, Medicare, and withheld federal income taxes. These rules tell you when a deposit is due after you have a payday. Having the correct Deposit Frequency ensures that form defaults will be appropriate. For example: depending on the employer’s deposit frequency, the values in Part 2 of Form 941 are determined and the Schedule B may or may not be included with the return.
- The EF Options tab is needed if you are planning to Efile the 94x forms.
- Open the Form 94x Option Screen (Setup > 94X Form Settings) - This screen tells CWU whether or not the 94x form will be created from the Tax Deposit menu option (Employees > Tax Deposit). It also controls whether CWU will accumulate the amounts from the payroll records for the quarter chosen, or both accumulate and calculate the information on the form.
- For any form group, check Use Tax Deposit Information on… only if you will be recording tax deposits during the quarter and, therefore, want the values recorded in those tax deposits to be accumulated and displayed on the form.
Note. When selected and used with On The Fly Forms, the form will not auto-calculate.
- For example: If Use Tax Deposit Information on 941/941-PR is checked, the values recorded in any of the tax deposits saved and paid for a specific quarter on the 941 Tax Deposits screen (Employees > Tax Deposits > 941) will display only on Forms 941 generated from that screen (by clicking the “941…” button for the corresponding quarter). Any Forms 941 generated by going to Employees > 94x Forms, will contain only data calculated from existing payroll records for the quarter selected and will not reflect any changes made to taxable, current quarter, or deposit amounts which were saved as a result of making a tax deposit.
- For either Form 941 group, check Override Sch. B Printing to stop a Schedule B from being included with the return.
- For any form group, check Override Calculated Data if you do not want CWU to calculate subtotal and total lines on the form.
- For example: If Override Calculated Data is checked in the group Form 941/941-PR, a value will initially appear on Line 5e of Form 941; however, if any value associated with lines 5a through 5d change, 5e will not recalculate (due to the override).
- Open the Setup Firm Information screen (Firm > Firm Info./Global Settings). If you intend to e-file 94x returns, complete firm setup by following "e-Filing Forms 94x - Setup" in Related Links below.
- Open the 94x Preparers Setup screen (Firm > 94X Preparer Setup)
- For the firm, information about each preparer of or third-party designee on 94x returns can be entered on the 94x Preparers Setup screen for inclusion later on the return itself. Enter only appropriate values as indicated by the form instructions and enter all values required. For more specific information on what is required and what should be entered or provided (if not mentioned below), refer to the official instructions for the specific form(s) found on the IRS’ Forms and Publications webpage.
- Enter a Preparer ID and click Add.
- The Preparer ID should be a short (up to 20 characters) identifier for the preparer or third-party designee. It cannot be reused unless deleted first.
- Preparer Information
- Enter values in this section only if the person and their information should be included as the “paid preparer” on the 94x return. After entering Address, press the Tab key, enter the Zip Code, and (after pressing Tab again) the City and State values will be displayed.
- Example: On Form 941, saved Preparer Information values appear just below Part 5 in the section identified as “For paid preparer’s use only.”
- Third Party Designee
- Enter values in this section only if the person and their information should be included as the “third-party designee” on the 94x return. For each person entered, indicate the appropriate selection, Allow Third Party Designee or Does Not Allow Third Party Designee. When Allow Third Party Designee is selected, also enter the Designee Name, Designee Phone, and Designee PIN as it should appear on the return.
- Example: On Form 941, saved Third Party Designee values appear in Part 4.
- If you added information or made any changes, click the Save button. Selecting a previous entry and clicking Delete will remove it from the list.
For a video overview on the e-file 94X process in CWU, including prerequisite setup, see CWU e-Filing 94X Returns.