Explaining the Form 941-X Employer’s ERC Claim Form

July 19, 2023
Dayes Law Firm

The government implemented the Employee Retention Credit (ERC or ERTC) to help business owners reduce the strain of the COVID-19 pandemic. While this is a useful tool, determining how to claim your credit can be difficult.

Form 941-X is a key piece in the process. But what is it, and how do you fill out the form? Dayes Law Firm PC can provide you with answers.

What Is the ERTC Form 941-X?

As a business owner, you’re likely familiar with the standard Form 941. This form records your business’s taxes, and you must file it with the IRS on a regular basis.

However, tax forms are sometimes complicated, and mistakes could happen. The original Form 941-X allowed you to correct these problems; by filling out the form, you could amend Social Security tax withholdings, reported wages, and more.

When the IRS introduced the ERC, it needed to make further adjustments to its tax documents. The ERC is a refundable tax credit allowing an eligible employer to claim employee wages to help cover payroll taxes. To address this, the IRS modified Form 941-X; you can amend a previously filed Form 941 and still claim the ERC by filling out certain sections. This way, you can help keep your business running.

When Is the Deadline To Fill Out ERTC Form 941-X?

To claim your ERC credit, you must file within three years of the deadline for your previously submitted Form 941. This means you’ll have until April 15, 2024, for many 2020 claims and until the same day in 2025 for 2021 claims.

How to Fill Out Form 941-X

Determining how to fill out ERTC form 941-X might seem complicated. With the right guidance, however, you can complete the form successfully.

Fill out your company’s information on each page. This includes your company’s name, employer identification number, and address.

You should see a “Return You’re Correcting” section in the form’s upper-right corner. You’ll want to choose “Form 941” and enter the relevant dates.

Under Part One, check the second box — that is, the box stating you’re filing a claim. Under Part Two, you’ll need to check the third box (to verify your information is accurate) and box 5d (which states the claim isn’t tax you’re withholding from an employee).

Enter the actual amount you intend to claim. You will need to fill out the following:

  • Part Three, Line 18 on page two, which covers the non-refundable portion of your ERC
  • Part Three, Line 23 on page three; this amount is based on the total from lines seven through 22 in the fourth column
  • Part Three, Line 26a on page three, which is the refundable portion of your ERC
  • Part Three, Line 27 on page three; this amount is based on the total from lines 23 through 26a in the fourth column
  • Part Three, Line 30 on page three, which is your qualified wages

On page five, you must include a detailed explanation of how you determined your qualified wages. Once you complete that, you’ll simply need to sign and submit the form.

Reach Out to Dayes Law Firm PC To Request Assistance Filling Out Form 941-X

ERTC Form 941-X can be confusing. Partnering with an attorney can help you make sense of it. Call (866) 257-1223 or fill out our contact form to reach out to our attorneys. At Dayes Law Firm PC, we leverage our years of experience in ever-evolving tax laws to provide you with the proper legal guidance and make preparing and filing your claim easier.