Quarterly filing of Form 941 error message "Your return is being filed too early"

Hi there, pyork1.

In QuickBooks Desktop (QBDT), it is possible to save a draft for Form 941. You can fill out the form, save it as draft and submit it on or after the official release date. However, if you're unable to save the draft you can open the draft then file it. Moreover, all changes you make on the draft will override the info. if you can no longer open the draft option you have to create a new form.

The IRS regularly updates tax forms to stay current with tax rules and regulations, so QuickBooks Desktop may not provide the option to save Form 941 before its official release date to protect small business owners from fines for filing incorrect returns or underreporting employment taxes.

I recommend saving the draft in a separate location and copying and pasting it into QBDT when you're ready to file.

Additionally, here are some articles you can check to help you file your 1099-MISC or 1099-NEC forms with the IRS, you may also need to file with your state: File your state 1099 forms.

Also,  how to correct or amend previously filed federal forms 941 and 940: File a corrected Federal Form 941 and 940 in QuickBooks Desktop Payroll.

I also recommend downloading the latest tax table update every time you pay your employees, or at least every 45 days. This is to ensure your payroll has accurate information.

We appreciate your patience as we work diligently to resolve your concern in managing your 941 error message, pyork1. Feel free to reach out again if you have any other questions or need assistance with managing your invoices in QuickBooks. I'm here to help!

@ShaniamarieC  RE: In QuickBooks Desktop (QBDT), it is not possible to save a draft for Form 941.

Of course it is possible and has been for about 20 years.

Why don't you know that? I do. And @pyork1 does.

Thank you for your response. However this comment about not being able to save drafts is simply not true. I can save the draft both before and after the current quarter closes. It's interesting that a QuickBooks Team member would not know this. 

"QuickBooks Desktop likely doesn't allow saving a draft for Form 941 before the IRS release date" I checked with the IRS and the final form for this quarter has been released. Understand that employers are on varying payroll schedules. Many close out payroll for the quarter by the 15th of the 3rd month, if not sooner. Filing early is actually encouraged: "Employers can benefit greatly from filing early. Being proactive helps avoid last-minute stress and ensure compliance with IRS regulations".

Interestingly, my coworker working in a separate department which provides payroll and payroll tax form services to government entities has had ZERO problems with creating the 941 "early", saving it in draft form, and filing that same copy once the quarter closes. "The IRS regularly updates tax forms to stay current with tax rules and regulations, so QuickBooks Desktop may not provide the option to save Form 941 before its official release date to protect small business owners from fines for filing incorrect returns or underreporting employment taxes." Why then is early drafting possible for government entities? QuickBooks is ok with the possibility of government entities filing incorrect returns and becoming subject to fines? This makes absolutely no sense.  

We are an accounting firm staffed with professionals versed in payroll and payroll taxes. We work off the Accountant Edition. My coworker working on the government payrolls is using the same Accountant Edition.

I encourage QuickBooks to allow early drafting across the board in this version.

I would like clarification on this subject. Even better I would like to see a solution.

Your timely update in this thread is truly appreciated, @pyork1. I want to provide some significant information so this can be sorted out.

It's always been possible in QuickBooks Desktop (QBDT) to save the draft of your Form 941. This is particularly useful for ensuring accuracy and making necessary adjustments before final submission.

Moreover, please ensure that the save as draft option will be clicked instead of the submit icon, as this will prevent accidental submission of incomplete or incorrect information.

To handle your payroll e-file and e-pay rejections, I've added this article: Handle payroll e-file and e-pay rejections.

Additionally, I'm dropping these resources to help you amend your previously filed federal forms 941 and 940.

• File a corrected Federal Form 941 and 940 in QuickBooks Desktop Payroll
• Understand the taxes and forms that QuickBooks payroll submits for you

You can always have me if there's anything else you need further assistance with handling your payroll forms. I want to help you move forward with your business success.

You changed your original answer to me @ShaniamarieC . Your original answer said "...it is not possible to save a draft for Form 941. This means you can only fill out the form if you're going to submit it on or after the official release date. ..."

Thus my lengthy response.

If you made an error in your original response, it would be best for you to add an UPDATE to your response vs changing the response. Doing so allows others to follow along and learn from this forum.  

This changes nothing. The issue I presented is still an issue we all would like to see resolved.

Thank you, Sherrie, for also responding. I would just like to see an option to work ahead and then later file a saved draft that was completed prior to the end of the quarter. If we file with errors, that's on us and we would amend to fix it. It would be so much more productive for us to at least have this option.