What is true regarding employers who file Form 941 electronically?

What is true regarding employers who file Form 941 electronically?

• A. They have to file more frequently
• B. They receive an extension of 10 days on deposit due dates
• C. They are exempt from filing fees
• D. They must pay higher taxes

Answer: (B)

Employers who file Form 941 electronically do receive an extension of 10 days on deposit due dates. This benefit is significant because it provides employers additional time to make their tax deposits, which can help with cash flow management. The extension applies to the amount of Social Security and Medicare taxes withheld from employee wages, allowing employers to ease their financial responsibilities without incurring penalties associated with late deposits. Electronic filing has been encouraged by the IRS as it enhances efficiency and accuracy, but this particular advantage regarding deposit due dates is a key reason many employers choose to file electronically. The other choices do not reflect the benefits or requirements accurately: employers do not have to file more frequently or pay higher taxes by filing electronically, nor are they exempt from filing fees for other required forms.

Employers who file Form 941 electronically do receive an extension of 10 days on deposit due dates. This benefit is significant because it provides employers additional time to make their tax deposits, which can help with cash flow management. The extension applies to the amount of Social Security and Medicare taxes withheld from employee wages, allowing employers to ease their financial responsibilities without incurring penalties associated with late deposits. Electronic filing has been encouraged by the IRS as it enhances efficiency and accuracy, but this particular advantage regarding deposit due dates is a key reason many employers choose to file electronically.

The other choices do not reflect the benefits or requirements accurately: employers do not have to file more frequently or pay higher taxes by filing electronically, nor are they exempt from filing fees for other required forms.