How to File your 941-X

So, you’ve successfully used the ERC Digital tool and are now looking at your calculated Employee Retention Credit amount. What comes next?

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First things first, we know employers have multiple options to choose from when it comes to filing for the ERC. To make your experience as smooth as possible, the ERC Digital processing team will ask you if you would like to receive your calculated credit in a raw data format (e.g., in an excel file) or in a completed and signed PDF, ready for filing.  

If you would like us to populate and sign your 941-X as a preparer, then we will present you with a signed PDF with the appropriate fields completed. Remember, per the IRS filing instructions;

“Corrections to amounts reported on Form 941, lines 11c, 13d, 21, and 22, for the employee retention credit are reported on Form 941-X, lines 18a, 26a, 30, and 31a, respectively. However, how you figure the employee retention credit for qualified wages paid after March 12, 2020, and before July 1, 2021, is different from how you figure the credit for qualified wages paid after June 30, 2021, and before January 1, 2022. Also, for corrections to qualified wages paid after June 30, 2021, you may need to complete line 31b to tell us if you're eligible for the employee retention credit solely because your business is a recovery startup business.”

No matter which option you choose, you will have the opportunity to review your final credit calculation as well as the quarterly data supporting the calculation before we finalize your purchase.

Remember, to officially claim your Employee Retention Credit a 941-X must be filed with the IRS. To make matters slightly more complicated, the IRS only accepts signed paper copies of the 941-X form. We know no two small businesses are alike and employers handle their taxes in different ways. This means we see some variety in how employers choose to take the final step and file.

Here are a few of the most common situations employers may face when it comes to filing their 941-X:

1. File with the IRS yourself. This is when you mail the IRS your signed, completed 941-X directly. In this scenario, the best solution is for ERC Digital to send you a completed 941-X.

2. Ask your CPA to file on your behalf. If you have an accounting firm or individual who typically files your business taxes, you may choose to send the completed 941-X to them to file with the IRS for you. In this situation, although your CPA is filing on your behalf, you will still receive a signed 941-X from GGP because we served as the preparer for this filing. Most CPAs will prefer a completed 941-X, however some may choose to receive raw calculated data.

3. Ask your PEO or Payroll Provider to file on your behalf. Many businesses have their payroll providers file their Form 941 quarterly. You may choose to send a completed 941-X to your Payroll Provider for filing. It is important to note that some PEOs and Payroll Providers may require ERC calculated data to be in their specific template or format. You can let us know if this is the case and we will work with you and your provider to deliver the calculated credit in the appropriate format.

The most important thing to remember is that we’re here to assist you! You can call or email our ERC Digital Processing Team between 9:00 AM and 8:00 PM EST at ercsupport@ercdigital.com or 1-888-230-4576.

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