TaxBandits Knowledge Base

What are the changes in the revised Form 941 for the Q1 of 2024?

The revised Form 941 from the IRS has the following significant changes to be expected for the upcoming tax season:

• The Social Security tax rate for both employers and employees is 6.2%. The Social Security wage base limit has risen from $160,200 to $168,600.
• The Medicare tax rate for employers and employees is 1.45%, which remains constant. There are no wage basis limitations for Medicare taxes.
• Social Security and Medicare taxes will be levied on household workers earning $2,700 or more in cash in 2024.
• Election workers who earn $2,300 or more in cash or equivalent compensation in 2024 will be liable to Social Security and Medicare taxes.
• Businesses can no longer claim COVID-19 related credits for qualifying sick and family leave wages on Form 941.

Certain Lines have been removed in Form 941 for 2024.

You will notice differences from last quarter’s filing when you look at several lines on the revised Form 941.  Here’s a quick rundown:

• Part 1, Lines 11a–11g.
  Lines 11a-11g of Part 1 have been removed. Instead, Line 11 will include information on the eligible small business payroll tax credit for increasing research activities, as reported on Form 8974(Payroll tax credit for Qualified small businesses for increasing research activities).
   

 

• Part 1, Lines 13a-13i.
  Lines 13a-13i of Part 1 have been removed from the revised Form 941 for 2024. Instead, line 13 will show the total amount of deposits for that quarter, including overpayments from Form 941-X, Form 941-X (PR), Form 944-X, or Form 944-X (SP) filed in the current quarter and overpayments applied from the prior quarter.
   

 

• Part 3, Lines 19–28.
  In Part 3, Lines 19–28 have been removed in the new Form 941 for 2024. Instead, Line 17 provides information about the employer who has stopped the business or stopped paying pages. Line 18 provides information about a seasonal employer who doesn't have to file a return for every quarter of the year