The IRS released updates to Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, which included the removal of several lines related to the employee retention credit. Employers should be aware of these changes to ensure accurate tax filings. 

Form 941-X 

Employers use Form 941-X to correct errors on Form 941 that were previously filed. Examples of these corrections may include wages, tips and other compensation, such as:  

• Income tax withheld from compensation 
• Taxable Social Security wages 
• Taxable Social Security tips 
• Taxable Medicare wages and tips 
• Taxable wages and tips subject to Additional Medicare Tax withholding 

Key Updates 

Several lines on Form 941—24, 33a, 33b, and 34—have been reserved for future use as the period for correcting these has generally expired, with most corrections allowed within three years of filing or two years of tax payment. The correction window for deferred Social Security tax and employee retention credit wages from early 2020 closed on April 15, 2024, though line 18a and Worksheet 2 remain. Additionally, COVID-19 sick and family leave tax credits can no longer be claimed on Form 941, though wages paid in 2024 for leave taken during the eligible period may qualify via Form 941-X—filed after Form 941 to avoid errors. As a reminder, Form 941-SS and Form 941-PR were discontinued after 2023, requiring employers in affected U.S. territories to use Form 941, with Form 941-X available for corrections to prior filings. 

Electronic Filing 

Form 941-X can now be filed electronically via Modernized e-File (MeF) providing employers with a faster, more efficient and secure method of submitting tax corrections. 

How We Can Help 

Managing payroll tax compliance can be complex, but we handle the details for you. Our payroll tax advisors understand the updated Form 941-X requirements and ensure accurate filings as part of our tax services. Contact us today to learn more about how we can support your business.