Hello:
My payroll provider submitted 2022 1st and 2nd quarter 941s on behalf of my 1 employee/owner S corporation. The corporation stopped paying wages as of Apr 1st, 2022. (I had transitioned to full time work, and no income was coming in on the S corp side). I'm getting conflicting answers as to whether to file the 3rd and 4th quarter 941s, even though they would all be zero'd out and the 3rd quarter would be late, or would amending my existing 2nd quarter 941 (by re-submitting), and checking off the box that states "If your business has closed or you stopped paying wages", and sending in a statement that will clarify my situation be the better approach? My payroll provider at the time did not make me aware that I needed to submit the additional zero'd returns. I will be closing down my S corporation when I do my returns for April 2023.
The 941 should be filed every quarter until the business is closed and a final return is file even if there were no wages being paid unless you filed a 941 indicating wages stopped ... filing an amended 941 would be wise if that is the case. Failure to file them if required will result in nasty penalties being imposed. This January you will file a final 941 & 940 along with a final 1120-S which is due MARCH 15, 2023 if you are a callendar year business.
Also who is completing the W-2 & W-3 if you are no longer using the payroll company ? Remember the 1/31 deadline for those to be done.
@Critter-3 So I should go ahead and file the 2022 3rd quarter and 4th quarter 941s with all zeros then in your opinion, and I should mark neither of them final?
After you talk to this faulty payroll company I would file the missing 3rd quarter and then the final 4th quarter and if the IRS was to send you a penalty notice beg ignorance to waive the penalty. I really think you did not get good advice from the payroll company.
Luckily the payroll provider will be completing all of EOY forms for my company, it was only the zero'd out 941s that were not sent out. I will amend quarter 2 one, as that would describe the actual reality (meaning, I did stop paying all wages on Apr 1, 2022)