Certification program for professional employer organizations (PEOs). 1635 and section 1 of Pub. If line 12 is more than line 13g, enter the difference on line 14. Any credit in excess of the remaining amount of the employer share of social security tax is refundable and reported on Form 941, line 13c. However, don't include any wages otherwise excluded under section 3121(b) when reporting qualified family leave wages on lines 5a(ii), 5c, and, if applicable, 5d. If you filed Form 944 in either 2021 or 2022, your lookback period is the 2021 calendar year. 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, If you don't have an EIN, you may apply for one online by going to, Write to the IRS office where you file your returns (using the, Employers eligible to claim the credit for qualified sick and family leave wages paid this quarter of 2023 for leave taken after March 31, 2020, and before October 1, 2021, can reduce their deposits by the amount of their anticipated credit. Is experiencing any other substantially similar condition specified by the U.S. Department of Health and Human Services, which for leave taken after March 31, 2021, and before October 1, 2021, includes to accompany an individual to obtain immunization related to COVID-19, or to care for an individual who is recovering from any injury, disability, illness, or condition related to the immunization. If you file Form 941 electronically, you can e-file and use EFW to pay the balance due in a single step using tax preparation software or through a tax professional. Qualified small business payroll tax credit for increasing research activities. 51 for more information. Generally, we won't ask about unfiled returns if at least one taxable return is filed each year. If you reported $50,000 or less in taxes during the lookback period, youre a monthly schedule depositor unless the $100,000 Next-Day Deposit Rule discussed in section 11 of Pub. The preparer must give you a copy of the return in addition to the copy to be filed with the IRS. Add the amounts for each month. You must make required deposits according to your deposit schedule. 15-A. For more information, go to, The credit for qualified sick leave wages and qualified family leave wages is increased to cover the qualified health plan expenses that are properly allocable to the qualified leave wages for which the credit is allowed. Legal holidays in the District of Columbia are provided in section 11 of Pub. To make sure businesses comply with federal tax laws, the IRS monitors tax filings and payments by using a numerical system to identify taxpayers. 2012-18. Amounts under certain collectively bargained agreements allocable to qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 2021 (Form 941, Part 3, Employer share of social security tax on qualified sick leave wages. Social security and Medicare taxes apply to the wages of household workers you pay $2,600 or more in cash wages in 2023. These maximum amounts also reset and apply to leave taken after March 31, 2021, and before October 1, 2021. Step 2: Tell us about your business. The IRS has released an updated version of Form 941 for the 2nd through 4th quarters of 2020, the 1st quarter 2021, the 2nd through 4th quarters of 2021, and the 1st quarter of 2022 and later. Employer's Quarterly Federal Tax Return - American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands. Taxable wages & tips subject to Additional Medicare Tax withholding. In the first quarter of 2023, Maple Co. had pay dates of January 6, January 20, February 3, February 17, March 3, March 17, and March 31. 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. %PDF-1.7 % Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, Wisconsin, Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming, No legal residence or principal place of business in any state. If youre a third-party payer of sick pay that isn't an agent and you're claiming credits for amounts paid to your employees, enter the employer share of Medicare tax included on Form 941, Part 1, If you received a Section 3121(q) Notice and Demand during the quarter, enter the amount of the employer share of Medicare tax from the notice, Enter the amount from Form 8974, line 16, for this quarter. Commas are optional. Use Form 843 to request abatement of assessed penalties or interest. Employer share of social security and Medicare tax allocable to the qualified sick and family leave wages. If youre a governmental employer, wages you pay aren't automatically exempt from social security and Medicare taxes. Employers can receive both a Small Business Interruption Loan under the Paycheck Protection Program (PPP) and the credit for qualified sick and family leave wages; however, employers can't receive both loan forgiveness and a credit for the same wages. For more information and rules about federal tax deposits, see Depositing Your Taxes, earlier, and section 11 of Pub. A unique nine-digit EIN is assigned to all corporations, partnerships, and some sole proprietors. 4. For more information or to apply to become a CPEO, go to, CPEOs must generally file Form 941 and Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, electronically. Businesses can enjoy the benefits of filing tax returns and paying their federal taxes electronically. Inst 941 (Schedule B) Instructions for Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors. 3632 0 obj 15 for information about payments made under the accuracy of deposits rule and for rules about federal tax deposits. For purposes of this credit, qualified sick leave wages and 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 EPSLA or Expanded FMLA. Proc. 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. Rul. You remain responsible if the third party fails to perform any required action. If you made timely deposits in full payment of your taxes for the quarter, you may file by the 10th day of the 2nd month that follows the end of the quarter. If the amount of the payroll tax credit exceeds Rose Co.'s share of social security tax (up to $250,000) on wages paid to its employees in the third quarter, any remaining credit is used against Rose Co.'s share of Medicare tax on the first payroll payment of the quarter and then the excess payroll tax credit would be carried forward to succeeding payroll payments in the third quarter until it is used against Rose Co.'s share of Medicare tax for the quarter. 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. Form 941 for 2022: (Rev. Mail your return to the address listed for your location in the table that follows. 06-Dec-2022 Share. Enter dollars to the left of the preprinted decimal point and cents to the right of it. Instructions for Form 941-X (PR), Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund (Puerto Rico Version) 0422. 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. Call us for information about processing your return. Employers with fewer than 500 employees and, for leave taken after March 31, 2021, and before October 1, 2021, certain governmental employers without regard to number of employees (except for the federal government and its agencies and instrumentalities unless described in section 501(c)(1)) are entitled to a credit under the FFCRA, as amended for purposes of the ARP, if they provide paid family leave to employees that otherwise meets the requirements of the Expanded FMLA. Collectively bargained apprenticeship program contributions. The Stephen Beck, Jr., ABLE Act of 2014 required the IRS to establish a voluntary certification program for PEOs. Under the adjustment process, an employer can claim the credit against regular payroll tax due on its next Form 941 filing and then file the required Form 941-X to report the correction (see Form 941-X Instructions, (7/2021, pg. You can pay the balance due shown on Form 941 by credit or debit card. Add the total federal income tax withheld from wages, tips, and other compensation (line 3); the total social security and Medicare taxes before adjustments (line 5e); and any tax due under a Section 3121(q) Notice and Demand (line 5f). You must complete all three pages of Form 941 and sign on page 3. . The rate of Medicare tax is 1.45% (0.0145) each for the employer and employee or 2.9% (0.029) for both. If federal income, social security, and Medicare taxes that must be withheld (that is, trust fund taxes) aren't withheld or aren't deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. 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. The refundable portion of the credit doesnt reduce the liability reported on line 16 or Schedule B (Form 941). Under the withholding system, taxes withheld from your employees are credited to your employees in payment of their tax liabilities. However, employers that pay qualified sick and family leave wages in 2023 for leave taken after March 31, 2020, and before October 1, 2021, are eligible to claim a credit for qualified sick and family leave wages in the quarter of 2023 in which the qualified wages were paid. 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. You don't have to make a deposit. Your Form 941 is due by the last day of the month that follows the end of the quarter. 15 and the Instructions for Schedule D (Form 941). Under the EPSLA, as amended for purposes of the ARP, wages are qualified sick leave wages if paid to employees that are unable to work or telework before October 1, 2021, because the employee: Is subject to a federal, state, or local quarantine or isolation order related to COVID-19; Has been advised by a health care provider to self-quarantine due to concerns related to COVID-19; Is experiencing symptoms of COVID-19 and seeking a medical diagnosis; or, for leave taken after March 31, 2021, and before October 1, 2021, is seeking or awaiting the results of a diagnostic test for, or a medical diagnosis of, COVID-19 (and the employee has been exposed to COVID-19 or the employee's employer has requested such test or diagnosis), or the employee is obtaining immunizations related to COVID-19 or recovering from an injury, disability, illness, or condition related to such immunization; Is caring for an individual subject to an order described in (1) or who has been advised as described in (2); Is caring for a son or daughter because the school or place of care for that child has been closed, or the childcare provider for that child is unavailable, due to COVID-19 precautions; or. These qualified health plan expenses are amounts paid or incurred by the employer to provide and maintain a group health plan but only to the extent such amounts are excluded from the employees' income as coverage under an accident or health plan. However, don't include any wages otherwise excluded under section 3121(b) when reporting qualified sick leave wages on lines 5a(i), 5c, and, if applicable, 5d. Line 7 Follow the instructions on the form. Enter the total on line 13g. 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. The IRS uses two different sets of deposit rules to determine when businesses must deposit their social security, Medicare, and withheld federal income taxes. For this purpose, sick pay includes payments made by an insurance company to your employees for which you received timely notice from the insurance company. 664, available at IRS.gov/irb/2020-17_IRB#NOT-2020-22; and Notice 2021-24, 2021-18 I.R.B. 15-A for more information about sick pay reporting. If your total taxes after adjustments and nonrefundable credits (line 12) are $2,500 or more for the current quarter and the prior quarter. Qualified Sick Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021, 24. If you pay by EFT, credit card, or debit card, file your return using the Without a payment address under Where Should You File, earlier, and don't file Form 941-V, Payment Voucher. If you reported $50,000 or less in taxes during the lookback period, youre a monthly schedule depositor. 966. If the due date falls on a Saturday, Sunday, or legal holiday, . Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages Reported on Line 26, 28. 15, Employer's Tax Guide, beginning with the Pub. 06/29/2022. 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 IRS.gov/OutsourcingPayrollDuties for helpful information on this topic. Finalized versions of the 2022 Form 941, its instructions, and schedules were issued Feb. 28 by the Internal Revenue Service. Please check with your financial institution regarding availability, deadlines, and costs. 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. 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. Requesting to file Forms 941 instead of Form 944. 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 . 15. Use Worksheet 2 to figure the credit for leave taken after March 31, 2021, and before October 1, 2021. 15 for more information. Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021, 20. (electronic and paper coupons) and any payments submitted with Form IL-941 or Form IL-941-X previously filed for this period. 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. However, don't include any wages otherwise excluded under section 3121(b) when reporting qualified sick leave wages on lines 5a(i), 5c, and, if applicable, 5d. CPEOs must generally file Form 941 and Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, electronically. File your fully completed Form 941 on time. If your total taxes after adjustments and nonrefundable credits (line 12) are less than $2,500 for the current quarter or the prior quarter, and you didn't incur a $100,000 next-day deposit obligation during the current quarter. 179, Gua Contributiva Federal para Patronos Puertorriqueos, will no longer be available after 2023. The payroll tax credit election must be made on or before the due date of the originally filed income tax return (including extensions). For example, enter -10.59 instead of (10.59). However, if your software only allows for parentheses in entering negative amounts, you may use them. General Instructions: Understanding Form 941-X What Is the Purpose of Form 941-X? You may be required to file Forms W-2 electronically. Multiply line 2a(ii) by 1.45% (0.0145). To tell the IRS that Form 941 for a particular quarter is your final return, check the box on line 17 and enter the final date you paid wages. These instructions give you some background information about Form 941. For purposes of this credit, qualified sick leave wages and 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 EPSLA or Expanded FMLA, as enacted under the FFCRA and amended for purposes of the ARP.