How to save money when filing Federal Form 941 & 940 for S-Corp

Thanks for the info. Do you know roughly how much these e-file providers charge for a simple 941/940 filing? I'm also a small S-corp and trying to decide if it's worth it. Also, have you ever had issues with the IRS claiming they didn't receive a paper form even though you mailed it?

Prices for e-filing Forms 940 and 941 typically range from $10-50 per form depending on the provider and whether you need any additional services. Some payroll software includes this as part of their package, which might be worth considering if you're handling your own payroll. I haven't personally experienced issues with forms being lost in the mail, but it does happen. That's why some business owners opt for certified mail with return receipt for important tax documents. It costs a bit more but provides proof of delivery that can be valuable if there's ever a dispute about whether the IRS received your forms.

How does taxr.ai handle payroll documents specifically? I've used other tax services before but they seemed more focused on income tax returns rather than employment forms.

I'm skeptical about these services - do they actually check for compliance issues or just try to upsell you on more expensive packages? My accountant charges me $200 quarterly to handle my 941s which seems steep for such a simple form.

They have specific modules designed for analyzing employment tax documents including 941s and 940s. Their system flags potential errors and compliance issues specifically for business tax filings, not just income tax. It's particularly helpful for catching common mistakes like incorrect deposit schedules or mismatched totals. The service is straightforward - there's no upselling to more expensive packages. It's actually designed to help small business owners who handle their own compliance without an expensive accountant. $200 quarterly is definitely on the high side for just 941 preparation! Most users save significantly compared to accountant fees while still ensuring compliance.

How does this actually work? Do they just automate the hold process somehow? I'm confused how they get priority access to IRS agents when regular people have to wait.

This sounds too good to be true. I've literally spent entire days trying to reach the IRS. If this actually worked, wouldn't everyone be using it? I've seen plenty of services claim to help with IRS issues but they never deliver.

They don't have any special priority access - they use an automated system that waits in the IRS phone queue for you. It's basically like having someone else sit on hold while you go about your day. When they reach a live agent, they call you and connect you directly to that agent. No magic, just clever technology. It doesn't make the IRS queue any shorter, but it means you don't have to waste your valuable time listening to hold music. You can keep working and just take the call when an agent is actually available. It's made a huge difference for me since I can't afford to spend hours on hold during business hours.

I've been looking at services like that. What's the approximate monthly cost for a one-person S-corp? And do they handle all the state filings too, or just federal?

For a single-employee S-corp, most payroll services run between $45-60 per month. This typically includes all federal filings (940, 941, W-2, etc.) plus state unemployment and withholding filings. Many services also offer direct deposit, tax payment scheduling, and year-end tax form preparation. Some even have additional features like time tracking or benefits administration if you ever expand. For me, eliminating the quarterly stress of handling these forms myself has been completely worth the cost.

That's reassuring! So even if there's some delay with the paper forms, as long as the money gets there through EFTPS, they generally don't send nasty letters about missing payments?

Exactly! The IRS payment systems are pretty sophisticated at matching payments to accounts. As long as your EFTPS payment includes the correct EIN, tax period, and form type, they can usually reconcile it even if the paper form arrives a few days later or gets delayed in processing. I've had situations where my 941 got held up in mail processing for over a week, but since the payment was already in their system through EFTPS, there were no penalties or late notices. The electronic payment system is really their primary concern - they want the money on time more than they need the paper immediately. Just make sure you're entering all the details correctly in EFTPS, especially the tax period dates and form number. That's what allows their system to automatically match everything up.