This guide covers: how Payrollix signs your clients' federal returns by default, and how to optionally list your firm as the paid preparer (with your PTIN) or add a third-party designee so your name appears on the 941 and 940.
How returns are signed by default
What it does: Payrollix files your clients' Forms 941 and 940 as their Reporting Agent under Form 8655 and signs them electronically with the Reporting Agent PIN. Because of that, Part 5's "Paid Preparer Use Only" section is left blank and Part 4's third-party designee answers "No" — which is the correct treatment for a reporting-agent-filed return.
You don't have to add anything. The two sections below are optional opt-ins for firms that want their name on the return.
Paid preparer vs. third-party designee — which do you want?
These are two different roles, often confused:
| Third-Party Designee (Part 4 / 940 Part 6) | Paid Preparer (Part 5 / 940 Part 7) | |
|---|---|---|
| What it means | Authorizes the IRS to discuss this return with the person | Lists the person/firm paid to prepare the return |
| What it needs | Name, phone, and a self-selected 5-digit PIN | Name, PTIN, and firm name/EIN/address/phone |
| Responsibility | None — just a contact | Preparer of record (IRC §6694) |
You can turn on either, both, or neither. Both are set in the same place.
Where to set them
Where: Settings → Firm / Preparer settings.
List your firm as the paid preparer
Steps:
- Make sure your firm name, EIN, address, and phone are filled in on the same page (these print in the Paid Preparer block).
- Turn on "List my firm as the Paid Preparer on filed returns."
- Enter your PTIN (the field appears when the toggle is on).
- Save.
Your firm then appears in Part 5 of the 941 and Part 7 of the 940 on returns filed going forward, with the preparer date set to the filing date. (A PTIN is required — the IRS block isn't valid without one, and listing your firm makes it the preparer of record under §6694.)
Add a third-party designee
Steps:
- Turn on "Allow a third-party designee on filed returns."
- Enter the designee name, phone, and a 5-digit PIN (any 5 digits you choose — the IRS uses it to verify the designee's identity by phone).
- Save.
The designee then appears in Part 4 of the 941 and Part 6 of the 940 on returns filed going forward.
Good to know
- These apply to returns filed from here on. A return that's already been filed keeps showing exactly what was transmitted to the IRS — Payrollix doesn't restate the copy of a filed return. If you turn one of these on now, you'll see it on your next filing (e.g. the next quarter's 941), not on returns already submitted.
- Turning either off returns that section to its default (blank preparer / "No" designee) on future filings.
- The downloadable 941/940 is a "Copy of E-filed Return — Do Not File" — a records copy that mirrors what was e-filed.