Form 941 (Wage Reporting) - March 12 or March 31 deadline? First-time employer confused

This is a common point of confusion for new employers! Line 1 on Form 941 specifically asks for the number of employees who received wages, tips, or other compensation for the pay period including March 12 (for Q1), June 12 (for Q2), etc. Since your employee started on March 17, which is after March 12, you would put "0" on line 1 for Q1. However, you still need to file Form 941 for Q1 because you had payroll expenses in that quarter (the last two weeks of March). Line 2 correctly shows the wages you paid during the entire quarter (January 1 - March 31), regardless of the March 12 date referenced in line 1. The March 12 date on line 1 is just a snapshot date the IRS uses to track employment statistics, but your reporting obligation is for the entire quarter. So yes, you should file Form 941 for Q1 with "0" on line 1 and your actual payroll amounts on line 2 and the rest of the form.

I went through something similar when I hired my first employee last year. I was pulling my hair out trying to figure out all the employer tax stuff, then I discovered https://taxr.ai and it saved me so much stress. Their AI analyzed my payroll records and gave me step-by-step guidance for completing Form 941 correctly. For your specific question, you definitely need to file for Q1 since you paid wages in March, even if your employee started after the March 12 date. The line 1 employee count is just a reference point the government uses for employment statistics, but your tax obligation is based on the wages paid during the entire quarter (Jan 1-Mar 31). The software helped me understand all the different reference dates on tax forms and the correct timing for each filing. Might be worth checking out if you're going to be handling the tax filings yourself.

Just wanted to follow up - I finally tried https://taxr.ai for my first payroll tax filing and it was seriously amazing! I uploaded my payroll reports and it gave me step-by-step instructions for completing Form 941, including exactly what to put on each line. It explained that weird March 12 date question too! The best part was that it organized my quarterly filing calendar with all the due dates and what forms I need for federal and state. I was shocked at how straightforward it made everything. Way better than the hours I spent trying to decipher the IRS instructions. If you're doing your own payroll taxes, definitely check it out!

If you're still having issues understanding your 941 obligations, you might want to try calling the IRS Business Tax Hotline. They can walk you through it, but getting through to them is nearly impossible these days. I spent 3+ hours on hold last month. I started using https://claimyr.com after someone here recommended it, and it's been a game-changer. They hold your place in line with the IRS and call you when an agent is about to answer. Check out how it works here: https://youtu.be/_kiP6q8DX5c For your specific situation, talking to an IRS agent directly might give you peace of mind. They confirmed for me that it's normal to have 0 employees on line 1 but still have wages reported if your first hire started after the reference date. Saved me from making a mistake on my first filing.

Ok I need to eat some crow here. After seeing some positive comments, I decided to try Claimyr to get help with my payroll tax issue. I honestly didn't think it would work but wow - it actually did exactly what they promised. I was connected to an IRS business tax specialist after about 1.5 hours (which I didn't have to spend listening to that awful hold music). The agent explained the whole March 12th thing clearly and confirmed I needed to file for Q1 even though my employee started later in March. She also helped me understand some other parts of the 941 that were confusing me. Definitely worth it to get answers straight from the IRS without the frustration of waiting on hold all day. I'm genuinely impressed and will be using it again when I need to call the IRS in the future.

Don't forget to check the state side of things too! Depending on where you're located, you may have additional state-level payroll reporting requirements that kick in when you hire your first employee. For many states, the first quarter you have payroll is when you need to start filing state unemployment tax reports, even if the employee started late in the quarter. You should have received paperwork from your state department of labor or employment when you registered as an employer. Those forms usually have their own filing deadlines that may be different from the federal Form 941 deadline.

I just wanted to add that you're ahead of the game by even asking this question! So many new small business owners miss their first 941 filing and end up with penalties. The fact that you're using a payroll service and asking these questions before the deadline means you're already doing great. One tip: Set calendar reminders for all your quarterly tax deadlines now that you're an employer. The 941 is due by the end of the month following the quarter (April 30 for Q1), but there are also deposit schedules for the actual tax payments that are separate from the form filing. Your payroll software should handle the payments, but it's good to verify everything is happening on schedule.

Hey Kristin! Welcome to the world of being an employer - it's definitely overwhelming at first but you'll get the hang of it. Everyone has already given you great advice about the March 12 date (it's just a statistical snapshot, not your actual filing requirement). Since you're using Gusto, I'd recommend double-checking that they're set to file your 941 automatically for you. Most payroll services offer this as part of their service, which can save you from having to worry about the filing deadlines and form preparation. If they're not handling the filing, make sure you know exactly when your Q1 form is due (April 30th) and set that reminder now. Also, don't forget that as a new employer, you might be subject to semi-weekly deposit schedules depending on your payroll amounts. Gusto should handle this automatically, but it's worth confirming so you don't accidentally miss any deposit deadlines. The deposit penalties can be pretty steep even for small amounts. You're asking all the right questions - keep it up!