Get a Pin, Start e-Filing
The IRS also offers a way business owners can e-file without the use of an approved e-filer. This is where publication 3823 comes in (the 118-page War & Peace novel), appropriately called Electronic Tax Administration (link on Page 2).
If you already know the possible ending of this novel, you can skip the reading and follow these steps on how to file 941 employment taxes online.
EIN Number – In order to participate in online e-filing, you must have an employer identification number or EIN. Or a social security number if you are a sole proprietorship.
Owner of Business – You must also be able to prove that you are an owner of the business, partial owner (at least 5%) or partner or officer such as president, secretary, or treasurer, etc.
COTS – Also known as commercial off the shelf software for e-filing, COTS is a necessary must if you want to e-file 941 taxes on your own. The IRS also provides a list of approved COTS providers—you can find approved COTS providers here. You must utilize one of these software providers unless you are a software designer that understands the IRS’ Schema reporting system that includes may acronyms like XML and HTML and others I won’t bother with here (I think it's secret IRS lingo). If you look at the approved list, many are SaaS or software as a service providers using the cloud method.
Registration – Once you’ve selected your COTS provider, they will register your company information and confirm with the IRS that you qualify as an authorized person to sign the 941 return as stated above, owner, officer, etc., and assign a PIN number. The software also keeps track of your PIN number as an identifier for the IRS.
e-Filing – When it’s time to file business 941 tax forms online, the COTS software will utilize the information you enter or upload and file the form. Quarterly reports are due April 30th, July 31st, October 31st and January 31st. Filers using COTS software may only file five reports a year including your annual 940 FUTA return which is due by January 31st of every year. If there is a payment due, you can then resort to what I like to call—method three!