If you reported more than $50,000 of taxes during the lookback period, youre a semiweekly schedule depositor. For leave taken after March 31, 2020, and before April 1, 2021, wages are qualified family leave wages if paid to an employee who has been employed for at least 30 calendar days when an employee is unable to work or telework due to the need to care for a son or daughter under 18 years of age or incapable of self-care because of a mental or physical disability because the school or place of care for that child has been closed, or the childcare provider for that child is unavailable, due to a public health emergency. Churches file Form 941 four times a year to report income taxes, social security tax, or Medicare tax withheld from employees' paychecks. For more information, see the instructions for, Section 303(d) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 allows for a payroll tax credit for certain tax-exempt organizations affected by certain qualified disasters, The Stephen Beck, Jr., ABLE Act of 2014 required the IRS to establish a voluntary certification program for PEOs. You will reconcile this difference on Form W-3. If you meet the de minimis exception based on the prior quarter and line 12 for the current quarter is $100,000 or more, you must provide a record of your federal tax liability. Now Healthy Churches; Next . See the instructions for, For purposes of the credit for qualified sick and family leave wages, qualified family leave wages are wages for social security and Medicare tax purposes, determined without regard to the exclusions from the definition of employment under sections 3121(b)(1)(22), that an employer pays that otherwise meet the requirements of the Expanded FMLA, as enacted under the FFCRA and amended by the COVID-related Tax Relief Act of 2020. Complete lines 26, 27, and 28 only if qualified family leave wages were paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021. If you have more than one and aren't sure which one to use, write to the IRS office where you file your returns (using the Without a payment address under Where Should You File, later) or call the IRS at 800-829-4933. Type or print within the boxes. If you want more in-depth information about payroll tax topics relating to Form 941, see Pub. For more information, see section 10 of Pub. "=k?#Ut(~Z"NKOJ_U7o/T09FNO~6$fqn4I07vF0`[Bo Total social security and Medicare taxes. Businesses can enjoy the benefits of filing tax returns and paying their federal taxes electronically. For more information about exempt wages, see section 15 of Pub. For more information about the payroll tax credit, see, Generally, the credit for qualified sick and family leave wages, as enacted under the Families First Coronavirus Response Act (FFCRA) and amended and extended by the COVID-related Tax Relief Act of 2020, for leave taken after March 31, 2020, and before April 1, 2021, and the credit for qualified sick and family leave wages under sections 3131, 3132, and 3133 of the Internal Revenue Code, as enacted under the American Rescue Plan Act of 2021 (the ARP) for leave taken after March 31, 2021, and before October 1, 2021, have expired. Enter the qualified family leave wages you paid this quarter of 2023 to your employees for leave taken after March 31, 2021, and before October 1, 2021, including any qualified family leave wages that were above the social security wage base and any qualified family leave wages excluded from the definition of employment under sections 3121(b)(1)(22). Form. The trust fund recovery penalty won't apply to any amount of trust fund taxes an employer holds back in anticipation of any credits they are entitled to. . Qualified small business payroll tax credit for increasing research activities (line 11a). To request approval to act as an agent for an employer, the agent files Form 2678 with the IRS unless you're a state or local government agency acting as an agent under the special procedures provided in Rev. For details, see the General Instructions for Forms W-2 and W-3. Check the second box on line 16 and enter your tax liability for each month in the quarter. See the instructions for line 8 for an adjustment that you may need to make on Form 941 for sick pay. See the instructions for, For purposes of the credit for qualified sick and family leave wages, qualified sick leave wages are wages for social security and Medicare tax purposes, determined without regard to the exclusions from the definition of employment under sections 3121(b)(1)(22), that an employer pays that otherwise meet the requirements of the EPSLA, as enacted under the FFCRA and amended by the COVID-related Tax Relief Act of 2020. CPEOs must generally file Form 941 and Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, electronically. See the Instructions for Schedule D (Form 941) to determine whether you should file Schedule D (Form 941) and when you should file it. The amount of qualified health plan expenses generally includes both the portion of the cost paid by the employer and the portion of the cost paid by the employee with pre-tax salary reduction contributions. 2013-39, 2013-52 I.R.B. Current quarter's adjustment for sick pay. 12/22) 941HHE 1222W 01 9999 Form CT941 HHE is used to reconcile annual Connecticut income tax withholding from household employee wages only. Enter the name, phone number, and five-digit personal identification number (PIN) of the specific person to speak withnot the name of the firm that prepared your tax return. Take note: the revised version of Form 941 was released on January 26, 2022, but it's not yet ready for filing. If you paid qualified sick leave wages and/or qualified family leave wages this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021, complete Step 1 and Step 2. The term nonrefundable means the portion of the credit which is limited by law to the amount of certain taxes. Also enter your name and EIN on the top of pages 2 and 3. During this period, employees may use other forms of paid leave, such as qualified sick leave, accrued sick leave, annual leave, or other paid time off. Generally, we won't ask about unfiled returns if at least one taxable return is filed each year. Instructions for Form 941-SS, Employer's Quarterly Federal Tax Return - American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands . 2022 Inst 941: Instructions for Form 941, Employer's Quarterly Federal Tax Return 2022 Form 941: Employer's Quarterly Federal Tax Return 2021 Inst 941: Instructions for Form 941, Employer's Quarterly Federal Tax Return 2021 Form 941: Employer's Quarterly Federal Tax Return 2020 Employer share of social security and Medicare tax allocable to the qualified sick and family leave wages. Certain agricultural employers may request permission to file one Form CT-941 for the entire calendar year. %PDF-1.7 % If both an employer and a section 3504 authorized agent (or CPEO or other third-party payer) paid wages to an employee during a quarter, both the employer and the section 3504 authorized agent (or CPEO or other third-party payer, if applicable) should file Form 941 reporting the wages each entity paid to the employee during the applicable quarter and issue Forms W-2 reporting the wages each entity paid to the employee during the year. For the IRS mailing address to use if youre using a PDS, go to IRS.gov/PDSstreetAddresses. 15-A for more information about sick pay reporting. PEOs handle various payroll administration and tax reporting responsibilities for their business clients and are typically paid a fee based on payroll costs. . 15. If you don't check either box or if you check both boxes, we will generally apply the overpayment to your next return. CPEOs file Form 8973, Certified Professional Employer Organization/Customer Reporting Agreement, to notify the IRS that they started or ended a service contract with a customer. For more information, see, If you would mail your return filed without a payment to Ogden, as shown under, Your business should have only one EIN. The amount shown on line 12 must equal the Total liability for quarter shown on line 16 or the Total liability for the quarter shown on Schedule B (Form 941). 12/13/2022 Inst 982: Instructions for Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) 1221 12/27/2021 . 80, Federal Tax Guide for Employers in the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands; and Pub. COVID-19 employment tax credits when return filed by a third-party payer. Proc. Make sure the quarter checked is the same as shown on any attached Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors, and, if applicable, Schedule R (Form 941). If you work for a firm, enter the firm's name and the EIN of the firm. Cash tips include tips paid by cash, check, debit card, and credit card. By checking Yes, you authorize the IRS to talk to the person you named (your designee) about any questions we may have while we process your return. For more information about the credit for qualified sick and family leave wages, go to IRS.gov/PLC. You may be required to file Forms W-2 electronically. If you filed Form 944 in either 2021 or 2022, your lookback period is the 2021 calendar year. (electronic and paper coupons) and any payments submitted with Form IL-941 or Form IL-941-X previously filed for this period. Enter all wages, including qualified sick leave wages paid this quarter of 2023 and qualified family leave wages paid this quarter of 2023; tips; sick pay; and taxable fringe benefits that are subject to Medicare tax. The amount of collectively bargained apprenticeship program contributions allocated to qualified sick leave wages and/or qualified family leave wages in a quarter is the apprenticeship program contribution rate (expressed as an hourly rate) multiplied by the number of hours qualified sick leave wages and/or qualified family leave wages were provided to employees covered under the collective bargaining agreement during the quarter. 15-A for more information about sick pay reporting. Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021. The amount of qualified health plan expenses generally includes both the portion of the cost paid by the employer and the portion of the cost paid by the employee with pre-tax salary reduction contributions. The payroll tax credit election must Type or print within the boxes. 06/29/2022. The IRS has released: The 2023 Form 941, Employer's Quarterly Federal Tax Return, and its instructions The instructions for Schedule B, Report of Tax Liability for Semiweekly Schedule Depositors Schedule R, Allocation Schedule for Aggregate Form 941 Filers, and its instructions The Form 941 for 2023 contains no major changes. Qualified tax-exempt organizations that hire eligible unemployed veterans may be able to claim the work opportunity tax credit against their payroll tax liability using Form 5884-C. For more information, go to IRS.gov/WOTC. Postal Service to mail an item to a P.O. For leave taken after March 31, 2021, and before October 1, 2021, the limit resets and the total qualified family leave wages can't exceed $200 per day or $12,000 in the aggregate per employee. Include all tips your employee reported to you even if you were unable to withhold the employee tax of 6.2%. endobj 426, available at IRS.gov/irb/2017-03_IRB#RP-2017-14. Complete lines 19 and 20 only if qualified health plan expenses allocable to qualified sick leave wages and/or qualified family leave wages were paid this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021. Enter the total on line 13g. 15 for more information. A son or daughter must generally have been under 18 years of age or incapable of self-care because of a mental or physical disability. You cant claim the credit for leave taken after March 31, 2021, and before October 1, 2021, if, during the applicable quarter in which the qualified sick or family leave wages were paid, you made qualified sick or family leave wages available in a manner that discriminates in favor of highly compensated employees, full-time employees, or employees on the basis of employment tenure. 9. The second part of the template is the Payment Voucher which must be completed if the employer makes a payment with this record. Use Worksheet 1 to figure the credit for leave taken after March 31, 2020, and before April 1, 2021. see Instructions for Form 940 and Schedule A for Form 940. In completing line 16 or Schedule B (Form 941), you take into account the entire quarter's nonrefundable portion of the credit for qualified sick and family leave wages paid this quarter of 2023 against the liability for the first payroll payment of the quarter, but not below zero. Add the column 2 amounts on lines 5a5d. This share of social security and Medicare taxes isn't withheld from employees. Generally, don't complete this section if youre filing the return as a reporting agent and have a valid Form 8655 on file with the IRS. The same wages cant be treated as both qualified sick leave wages and qualified family leave wages. hZmSFOo,e1s\9=|I (3t$i#Hc8D If changes in law require additional changes to Form 941, the form and/or these instructions may be revised. endstream If you need to correct any adjustment reported on a previously filed Form 941, complete and file Form 941-X. Inst 941 (PR) (Schedule B) Instructions for Schedule B (Form 941) (PR), Report of Tax Liability for Semiweekly Schedule Depositors (Puerto Rico Version) 0622. If the payroll tax credit elected is more than Rose Co.'s share of social security tax on the first payroll payment of the quarter, the excess payroll tax credit would be carried forward to succeeding payroll payments in the third quarter until it is used against up to $250,000 of Rose Co.'s share of social security tax for the quarter. For EFTPS, go to EFTPS.gov or call 800-555-4477. However, don't use EFW to make federal tax deposits. 5e. 2005-39, 2005-28 I.R.B. To request approval to act as an agent for an employer, the agent files Form 2678 with the IRS unless you're a state or local government agency acting as an agent under the special procedures provided in Rev. If youre not sure your total tax liability for the current quarter will be less than $2,500 (and your liability for the prior quarter wasn't less than $2,500), make deposits using the semiweekly or monthly rules so you won't be subject to failure-to-deposit (FTD) penalties. 15. For 2023, the lookback period begins July 1, 2021, and ends June 30, 2022. See section 6 of Pub. The employee received more than $135,000 in pay for the preceding year. Qualified health plan expenses allocable to qualified sick leave wages (Form 941, Part 3, Employer share of Medicare tax on qualified sick leave wages. A business day is any day other than a Saturday, Sunday, or legal holiday. Multiply line 2a(iv) by 6.2% (0.062). See the box to the right. If you used an EIN (including a prior owner's EIN) on Form 941 that is different from the EIN reported on Form W-3, see Box hOther EIN used this year in the General Instructions for Forms W-2 and W-3. The amount entered on line 12 cant be less than zero. In completing line 16 or Schedule B (Form 941), you take into account the entire quarter's nonrefundable portion of the credit for qualified sick and family leave wages against the liability for the first payroll payment of the quarter, but not below zero. The ARP resets this limit at 80 hours of paid sick leave for leave taken after March 31, 2021, and before October 1, 2021. If the principal business was created or organized outside of the United States or U.S. territories, you may also apply for an EIN by calling 267-941-1099 (toll call). Instructions for Form 941-SS, Employer's Quarterly Federal Tax Return - American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands . If you don't have an EIN, you may apply for one online by going to IRS.gov/EIN. The refundable portion of the credit doesnt reduce the liability reported on line 16 or Schedule B (Form 941). Check only one box on line 15. If Rose Co. still has credit remaining after reducing its share of social security tax (up to $250,000) and Medicare tax for the third quarter, the remainder would be treated as a payroll tax credit against its share of social security tax (up to $250,000) and Medicare tax on wages paid in the fourth quarter. The third-party payer isn't entitled to the credits with respect to the wages and taxes it remits on your behalf (regardless of whether the third party is considered an "employer" for other purposes). Employers of household employees don't usually file Form 941. 1635 and section 1 of Pub. Checking the box tells the IRS not to expect four Forms 941 from you throughout the year because you haven't paid wages regularly. Form 8974 is used to determine the amount of the credit that can be used in the current quarter. File your initial Form 941 for the quarter in which you first paid wages that are subject to social security and Medicare taxes or subject to federal income tax withholding. A unique nine-digit EIN is assigned to all corporations, partnerships, and some sole proprietors. 426, available at, Generally, as an employer, you're responsible to ensure that tax returns are filed and deposits and payments are made, even if you contract with a third party to perform these acts. Important Information. You can choose to ignore test (2) if the employee wasnt also in the top 20% of employees when ranked by pay for the preceding year. CPEOs must generally file Form 941 and Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, electronically. Your financial institution may charge you a fee for payments made this way. However, don't include any wages otherwise excluded under section 3121(b) when reporting qualified sick and family leave wages on lines 5a, 5a(i), 5a(ii), 5c, and, if applicable, 5d. B(9L[soj,{M`~/>3Dda4_noQ- If you received a Section 3121(q) Notice and Demand for tax due on unreported tips (Letter 3263 or Letter 4520) during the quarter, you report the amount for the employer share of social security tax and Medicare tax on Form 941, line 5f. The uncollected employee share of social security and Medicare taxes on group-term life insurance premiums paid for former employees. However, continue to withhold income and Medicare taxes for the whole year on all wages, including qualified sick leave wages paid in 2023, qualified family leave wages paid in 2023, and tips, even when the social security wage base of $160,200 has been reached. Enter all tips your employees reported to you during the quarter until the total of the tips and taxable wages, including wages reported on line 5a, qualified sick leave wages reported on line 5a(i), and qualified family leave wages reported on line 5a(ii), for an employee reach $160,200 for the year. This amount is also entered on Worksheet 1, Step 2, line 2b. The nonrefundable portion of the credit is limited to the employer share of social security tax reported on Form 941, lines 5a and 5b, after that share is first reduced by any credit claimed against the employer share of social security tax on Form 8974 for the qualified small business payroll tax credit for increasing research activities, any credit to be claimed on Form 5884-C for the work opportunity credit for qualified tax-exempt organizations hiring qualified veterans, and/or any credit to be claimed on Form 5884-D for the disaster credit for qualified tax-exempt organizations. However, a reporting agent must complete this section if the reporting agent offered legal advice, for example, advising the client on determining whether its workers are employees or independent contractors for federal tax purposes. Enter the qualified sick leave wages you paid this quarter of 2023 to your employees for leave taken after March 31, 2021, and before October 1, 2021, including any qualified sick leave wages that were above the social security wage base and any qualified sick leave wages excluded from the definition of employment under sections 3121(b)(1)(22). 82, available at, Electronic Federal Tax Payment System (EFTPS), Instructions for Form 941 - Introductory Material, Requesting To File Forms 941 Instead of Form 944, or Requesting To File Form 944 Instead of Forms 941. 12/20) Page 1 of 2 Form CT-941 Instructions General Instructions . 15. If you use a paid preparer to complete Form 941, the paid preparer must complete and sign the paid preparer's section of the form. To make sure businesses comply with federal tax laws, the IRS monitors tax filings and payments by using a numerical system to identify taxpayers. If you use a tax preparer to fill out Form 941, make sure the preparer shows your business name exactly as it appeared when you applied for your EIN. If you receive a notice about a penalty after you file this return, reply to the notice with an explanation and we will determine if you meet reasonable-cause criteria. 1 Number of employees who received wages, tips, or other . Employers wont be subject to an FTD penalty for reducing their deposits if certain conditions are met. Pay the employer's portion of Social Security or Medicare tax. Youre required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021 (Form 941, Part 3, Qualified family leave wages included on Form 941, Part 3, line 26, that were not included as wages reported on Form 941, Part 1, lines 5a and 5c, because the qualified family leave wages were excluded from the definition of employment under sections 3121(b)(1)(22), Qualified family leave wages included on Form 941, Part 3, line 26, that were not included as wages reported on Form 941, Part 1, line 5a, because the qualified family leave wages were limited by the social security wage base. CPEOs must generally file Form 941 and Schedule R (Form 941) electronically. Reducing your deposits for the credit for qualified sick and family leave wages. If youre filing your tax return electronically, a valid EIN is required at the time the return is filed. If line 12 is more than line 13g, enter the difference on line 14. Taxable Social Security and Medicare Wages and Tips, 5f. The rate of Medicare tax is 1.45% (0.0145) each for the employer and employee or 2.9% (0.029) for both. Enter the nonrefundable portion of the credit for qualified sick and family leave wages from Worksheet 1, Step 2, line 2j. A draft version of the 2022 Form 941, Employer's Quarterly Federal Tax Return, was released Jan. 26 by the Internal Revenue Service. 15, or go to IRS.gov/CorrectingEmploymentTaxes. The amount of qualified health plan expenses generally includes both the portion of the cost paid by the employer and the portion of the cost paid by the employee with pre-tax salary reduction contributions. If you pay wages subject to federal income tax withholding or social security and Medicare taxes, you must file Form 941 quarterly to report the following amounts. instructions and the latest information. Line 15 - Calculate overpayment, if any. Enter the qualified health plan expenses allocable to qualified family leave wages paid this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021. Complete line 13e only if qualified sick leave wages and/or qualified family leave wages were paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021. See the instructions for line 8 for an adjustment that you may need to make on Form 941 for sick pay. For more information on making federal tax deposits, see section 11 of Pub. Qualified health plan expenses allocable to qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 2021 (Form 941, Part 3. Payroll tax credit for certain tax-exempt organizations affected by qualified disasters. You can apply for an installment agreement online if: You can't pay the full amount shown on line 14, The total amount you owe is $25,000 or less, and. 15. 1 Number of employees who received wages, tips, or other compensation for the pay period including: June 12 (Quarter 2), Sept. 12 (Quarter 3), or . The draft Form 941, which has a March 2022 revision date, contained several changes when compared with the version in effect for the second through fourth quarters of 2021. Section 303(d) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 allows for a payroll tax credit for certain tax-exempt organizations affected by certain qualified disasters not related to COVID-19. 15 for information about payments made under the accuracy of deposits rule and for rules about federal tax deposits. An employer's social security and medicare tax burden can also be calculated and reported via 941. Generally, as an employer, you're responsible to ensure that tax returns are filed and deposits and payments are made, even if you contract with a third party to perform these acts. If youre a semiweekly schedule depositor, attach Schedule B (Form 941). Qualified sick leave wages and qualified family leave wages paid in 2023 for leave taken after March 31, 2020, and before April 1, 2021, aren't subject to the employer share of social security tax; therefore, the tax rate on these wages is 6.2%. If line 12 is $2,500 or more and line 12 on the prior quarterly return was $2,500 or more, or if you incurred a $100,000 next-day deposit obligation during the current quarter. This amount is also entered on Worksheet 1, Step 2, line 2f. Enter the amount of social security tax from Form 941, Part 1. If you're the common-law employer of the individuals that are paid qualified sick or family leave wages, you're entitled to the credit for the sick and family leave wages regardless of whether you use a third-party payer (such as a PEO, CPEO, or section 3504 agent) to report and pay your federal employment taxes. Before you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer, such as a payroll service provider or reporting agent, go to, Approved section 3504 agents and CPEOs must complete and file Schedule R (Form 941) when filing an aggregate Form 941. Your filing address may have changed from that used to file your employment tax return in prior years. 926 and Schedule H (Form 1040) for more information. The IRS issues a Section 3121(q) Notice and Demand to advise an employer of the amount of tips received by employees who failed to report or underreported tips to the employer. Businesses needing an EIN must apply for a number and use it throughout the life of the business on all tax returns, payments, and reports. Your financial institution may charge you a fee for payments made this way. For the latest information about developments related to Form 941 and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form941. For leave taken after March 31, 2020, and before April 1, 2021, the total qualified family leave wages cant exceed $200 per day or $10,000 in the aggregate per employee. However, qualified health plan expenses don't include amounts that the employee paid for with after-tax contributions. Beginning in 2024, there will be a new Pub. 15. If youre filing your tax return or paying your federal taxes electronically, a valid employer identification number (EIN) is required at the time the return is filed or the payment is made. Your business should have only one EIN. the "look-back" period is July 1, 2021, through June 30, 2022. Don't change your tax liability on Schedule B (Form 941) by adjustments reported on any Forms 941-X.