Why is the 941 Form showing a lower number of employees than I actually have?

Line 1 of the 941 form asks for the number of employees who received wages, tips, or other compensation for the pay period including: March 12 (for Quarter 1), June 12 (for Quarter 2), September 12 (for Quarter 3) and December 12 (for Quarter 4). If you had an employee that did not get a paycheck for the pay period that included March 12 during the first quarter, then they will not be included in the count of employees.

Example: You have 10 employees but 4 of them take the week of spring break as vacation. If March 12 falls within the week of spring break and those employees don't get a check for that week, then you would only report 6 employees, not 10.

The number of employees reported does not affect the amount of taxes reported. All wages and taxes for all employees will be included on the report.

The number of employees on the form can always be changed. Click inside the "Number of employees" box and delete the number. Type in the number of employees you want to report.

The information contained in this web page is of a general nature. It is not offered as specific legal or tax "advice." Each person, local church, and district should evaluate their own unique situation in consultation with their local legal and tax advisors.