How do you indicate that you are a seasonal employer on Federal 941

[AlMacDee]

How do you indicate that you are a seasonal employer on Federal 941

[TheRealChipA]

Hey there @AlMacDee.  So until this past year, I was a seasonal employer (ice cream shop).  In past years, I didn’t worry about that particular check box on the 941 because Square Payroll automatically submitted a form 941 for me, so it didn’t matter that I was seasonal.  In reality that checkbox is only required for employers who fill out their own 941s and don’t want the hassle of sending in a zero form.  With Square Payroll (and other payroll services) it’s not needed.

[Summer2024 · Accepted solution]

Hi @AlMacDee ! @TheRealChipA is correct here, Square Payroll will automatically submit the 941 for you. However, I am going to outline the steps below in case anyone else wants to know. 

Indicating Seasonal Status

On Form 941

Check the box on Line 18:
"If you're a seasonal employer..."
Located at the top of Form 941

Qualification Requirements

• Only file for quarters with paid wages
• Business must be seasonal
• Regular pattern of seasonal activity

Important Notes

1. Filing Requirements

   • Check box each quarter you file
   • Only file for active quarters
   • Must be consistent with status
   • Keep records of seasonal periods

Best Practices

1. Documentation

   • Record seasonal periods
   • Track employee counts
   • Document wage payments
   • Keep filing history

2. Compliance

   • File timely for active quarters
   • Maintain accurate records
   • Update status if needed
   • Monitor seasonal patterns

[TheRealChipA]

@Summer2024 Well, I learned something new from you again today!  I just found out that we can update 941 information in our payroll settings.  Who knew?  Thanks.

[TheRealChipA]

Actually @Summer2024 I have a question.  I followed your path in #2 of your post.  There is no “update 941 information” in payroll settings.  Thinking it was elsewhere, I looked in Payroll > Tax Forms, but it was not there either.  So, something is wrong with the help documentation on that point, I think.

[Summer2024]

Yeah, I edited my response. When I was going through on my demo account, I thought that was an option. Thank goodness it is Friday. But also thank goodness we have you guys to double-check our work too 🤗

[AlMacDee]

So there is no way to check that seasonal box? Since we're seasonal I've got my payroll paused but I need to file a 1st quarter since that box has never been checked.