941 Lookback Period

[PATAX]

Now that second quarter 941 returns have been filed, it may be a good time to compute lookback period amount,  to see if client meets $50,000 tax liability threshold. This $50,000 threshold has been the same for some time I believe, and maybe it is time for it to be indexed to inflation.

[qbteachmt]

You want it raised? Or you want the split of the schedule changed, changing semi-weekly to monthly?

I believe it was the Paperwork Reduction Act (1980s?) that split it off into the $2,500 minimum. And the mid-2000s is when the Form 944 came out.

[PATAX]

@qbteachmt Yes I think the $50,000 threshold should be raised. I had two clients last year that barely went over, and now I have to do weekly 941 deposits. What happens if I get sick or Heidi runs off looking for a Sasquatch?

[PATAX]

@qbteachmt in all seriousness, I think it has been a $50,000 threshold for some time now. Due to the high inflation within the last few years many employers have increased their employees' salaries and wages in order to retain high quality employees. And of course with higher wages means higher 941 liability and many companies are now over the $50,000 threshold.

[Jim-from-Ohio · Accepted solution]

- good news is two of my payroll clients can be switched to monthly

- the not so good news two of my other payroll clients have to go every pay for the deposits

net zero sum 

what really should be raised for inflation is the phase out of education credits