Compliance Corner

Form 941 seasonal employer election: the checkbox rule that catches people off guard

Written by Laura Detsch | Jul 6, 2026 1:34:51 PM

Most payroll teams know there's a seasonal employer exception on Form 941. File for the quarters you have wages, skip the quarters you don't. Clean, logical — and mostly right. The part that gets missed: you have to check line 18 on every return you file, including the active ones. Miss it once, and the IRS starts asking about the quarters you thought you were exempt from.

That's the detail worth knowing. Everything else follows from it.