830, available at IRS.gov/irb/2013-52_IRB#RP-2013-39. For more information about the credit for qualified sick and family leave wages, go to IRS.gov/PLC. Proc. 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. Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make filing and paying easier. Federal Income Tax Withheld From Wages, Tips, and Other Compensation. For more information about this credit, go to IRS.gov/Form5884D. No adjustment is reported on line 8 for sick pay that is paid through a third party as an employers agent. The employee was a 5% owner at any time during the year or the preceding year. Title. Employer's Quarterly Federal Tax Return - American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands. Stop paying social security tax on and entering an employee's wages on line 5a(ii) when the employee's taxable wages, including wages reported on line 5a, qualified sick leave wages reported on line 5a(i), qualified family leave wages reported on line 5a(ii), and tips, reach $160,200 for the year. 06/22/2022 Form 941-X (PR) Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund (Puerto Rico Version) 0422 06/29/2022 Inst 941-X (PR) . 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. If your net adjustment during a month is negative and it exceeds your total tax liability for the month, don't enter a negative amount for the month. 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. Additional Medicare Tax is only imposed on the employee. <> If youre required to file Forms 941 but believe your employment taxes for calendar year 2023 will be $1,000 or less, you may request to file Form 944 instead of Forms 941 by calling the IRS at 800-829-4933 between January 1, 2023, and April 3, 2023, or sending a written request postmarked between January 1, 2023, and March 15, 2023. How can I file or pay . 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 . Mail your return to the address listed for your location in the table that follows. 15. For leave taken after March 31, 2021, and before October 1, 2021, qualified wages also don't include wages that were used as payroll costs in connection with a Shuttered Venue Operator Grant under section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act; or a restaurant revitalization grant under section 5003 of the ARP. There is no wage base limit for Medicare tax. 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. Refundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021, 13e. However, CPEOs are permitted to file a paper Form 941 and its accompanying schedules in lieu of electronic submissions for the second, third, and fourth quarters of calendar year 2020. Form 941 and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form941. If you deposited more than the correct amount for the quarter, you can choose to have the IRS either refund the overpayment or apply it to your next return. If youre filing your tax return electronically, a valid EIN is required at the time the return is filed. For purposes of these instructions, all references to sick pay mean ordinary sick pay, not qualified sick leave wages that are reported on line 5a(i) for leave taken after March 31, 2020, and before April 1, 2021, or reported on line 5a for leave taken after March 31, 2021, and before October 1, 2021. These instructions give you some background information about Form 941. To use the same-day wire payment method, you will need to make arrangements with your financial institution ahead of time. The amounts entered on lines 19 through 28 are amounts that you use on the worksheets at the end of these instructions to figure certain credits. If line 12 is more than line 13g, enter the difference on line 14. If you don't receive this notice, you must file Forms 941 for calendar year 2023. For more information about filing Form 941 electronically, see Electronic filing and payment, earlier. Pay the employer's portion of Social Security or Medicare tax. See Employer identification number (EIN), later, for information about applying for an EIN. Qualified family leave wages reported on Form 941, Part 1, Qualified family leave wages included on Form 941, Part 1, line 5c, but not included on Form 941, Part 1, line 5a(ii), column 1, because the wages reported on that line were limited by the social security wage base, Total qualified family leave wages. For more information on paying with a timely filed return, see the instructions for line 14, later. 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 if they provide paid sick leave to employees that otherwise meets the requirements of the EPSLA. You may be required to file Forms W-2 electronically. Write to the IRS office where you file your returns (using the Without a payment address under Where Should You File, later) to notify the IRS of any business name change. 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. Enter the amount before payroll deductions. Qualified small business payroll tax credit for increasing research activities (line 11a). To become a CPEO, the organization must apply through the IRS Online Registration System. You can pay the balance due shown on Form 941 by credit or debit card. The following persons are authorized to sign the return for each type of business entity. Any credit in excess of the remaining amount of the employer share of Medicare tax is refundable and reported on Form 941, line 13e. The nonrefundable portion of the credit for qualified sick and family leave wages for the quarter is $10,000. Certification program for professional employer organizations (PEOs). At this time, the IRS expects the March 2023 revision of Form 941 and these instructions to also be used for the second, third, and fourth quarters of 2023. Important Information. 15-T, Federal Income Tax Withholding Methods. This amount is also entered on Worksheet 2, Step 2, line 2c. 947. Proc. Follow the instructions for each box to determine if you need to enter your monthly tax liability on Form 941 or your daily tax liability on Schedule B (Form 941). If youre claiming these credits, you must enter the applicable amounts. Your deposit schedule depends on the total tax liability you reported on Form 941 during the previous 4-quarter lookback period (July 1 of the second preceding calendar year through June 30 of the preceding calendar year). PEOs handle various payroll administration and tax reporting responsibilities for their business clients and are typically paid a fee based on payroll costs. If you don't follow these guidelines, we will generally consider Form 941 filed when it is actually received. For answers to your questions about completing Form 941 or tax deposit rules, you can call the IRS at 800-829-4933 or 800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability), MondayFriday from 7:00 a.m. to 7:00 p.m. local time (Alaska and Hawaii follow Pacific time). 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. This form is also used to calculate the employer's Social Security and Medicare tax contributions and additional taxes withheld. A fee may be charged to file electronically. If a transfer occurs, you may need a new EIN. <> If you enter an amount on line 11a, you must attach Form 8974. 2. 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. Also see Adjusting tax liability for nonrefundable credits claimed on lines 11a, 11b, and 11d , later. Your payment will be processed by a payment processor who will charge a processing fee. 15, Pub. However, qualified health plan expenses dont include amounts that the employee paid for with after-tax contributions. 2017-14, 2017-3 I.R.B. See the instructions for line 11b for information about the credit for qualified sick and family leave wages for leave taken after March 31, 2020, and before April 1, 2021. If a valid EIN isn't provided, the return won't be accepted. Part 4:May We Speak With Your Third-Party Designee? Rose Co. elected to take the qualified small business payroll tax credit for increasing research activities on Form 6765. Additional Medicare Tax withheld from employees. Also include here any excise taxes you were required to withhold on golden parachute payments (section 4999). For more information, see Federal tax deposits must be made by electronic funds transfer (EFT) under Reminders, earlier. Letter 3263 or Letter 4520 includes an attachment that shows the employer share of social security tax. endobj For paid sick leave qualifying under (4), (5), or (6) above, the amount of qualified sick leave wages is determined at two-thirds the employee's regular rate of pay, but the wages may not exceed $200 for any day (or portion of a day) for which the individual is paid sick leave. Enter the nonrefundable portion of the credit for qualified sick and family leave wages from Worksheet 2, Step 2, line 2p. Under an installment agreement, you can pay what you owe in monthly installments. 3632 0 obj 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. 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. 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. Beginning in 2024, there will be a new Pub. Form 941-X is filed separately from Form 941. Don't include the qualified sick leave wages paid this quarter of 2023 that are reported on line 5a(i) or qualified family leave wages paid this quarter of 2023 that are reported on line 5a(ii) for leave taken after March 31, 2020, and before April 1, 2021. 11a. Complete and mail Form 8822-B to notify the IRS of a business address or responsible party change. 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. 15 applies. If line 12 is less than $2,500 or line 12 on the prior quarterly return was less than $2,500, and you didn't incur a $100,000 next-day deposit obligation during the current quarter. Dont round entries to whole dollars. For leave taken after March 31, 2020, and before April 1, 2021, the first 10 days for which an employee takes leave may be unpaid. To become a CPEO, the organization must apply through the IRS Online Registration System. Portable Document Format (PDF) forms on IRS.gov have fillable fields with acceptable font specifications. Box 2 - Choosing Quarter In box 2, choose a quarter for which Form 941 is being filed. Complete all information and sign Form 941. Enter the result on line 6. Use a minus sign (if possible) to show an adjustment that decreases the total taxes shown on line 6 instead of parentheses. Start completing the fillable fields and carefully type in required information. Revision Date. 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. Unlike the federal government, Illinois does not require an annual reconciliation return. Reporting adjustments from lines 79 on line 16. See section 11 of Pub. For more information, see the line 16 instructions, later. . Don't change your tax liability on line 16 by adjustments reported on any Forms 941-X. 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. Inst 941 (Schedule B) Instructions for Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors. Qualified health plan expenses allocable to qualified family leave wages (Form 941, Part 3, Employer share of Medicare tax on qualified family leave wages. 664, available at IRS.gov/irb/2020-17_IRB#NOT-2020-22; and Notice 2021-24, 2021-18 I.R.B. For 2023, the rate of social security tax on taxable wages, except for qualified sick leave wages and qualified family leave wages paid in 2023 for leave taken after March 31, 2020, and before April 1, 2021, is 6.2% (0.062) each for the employer and employee or 12.4% (0.124) for both. 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). 3634 0 obj Enter your name, EIN, Form 941, and the tax year and quarter on all attachments. Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021, 20. Line 14 - Calculate balance due, if any. See the instructions for line 8 for an adjustment that you may need to make on Form 941 for sick pay. Instead, report them on Form 8027. Federal law requires you, as an employer, to withhold certain taxes from your employees' pay. This credit is claimed on Form 5884-D (not on Form 941). Our Agency . For more information on reducing deposits, see Notice 2020-22, 2020-17 I.R.B. Corporation (including a limited liability company (LLC) treated as a corporation)The president, vice president, or other principal officer duly authorized to sign. Nonrefundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021 (line 11d). For more information about exempt wages, see section 15 of Pub. The rate of social security tax on taxable wages, including qualified sick leave wages and qualified family leave wages paid in 2023 for leave taken after March 31, 2021, and before October 1, 2021, is 6.2% each for the employer and employee or 12.4% for both. Approved section 3504 agents and CPEOs must complete and file Schedule R (Form 941) when filing an aggregate Form 941. Stop paying social security tax on and entering an employee's wages on line 5a(i) when the employee's taxable wages, including wages reported on line 5a, qualified sick leave wages reported on line 5a(i), qualified family leave wages reported on line 5a(ii), and tips, reach $160,200 for the year. Unlike social security wages, there is no limit on the amount of wages subject to Medicare tax. 15 for information about payments made under the accuracy of deposits rule and for rules about federal tax deposits. If changes in law require additional changes to Form 941, the form and/or these . See the instructions for line 5c for reporting Medicare tax on qualified sick leave wages, including the portion above the social security wage base. If a valid EIN isn't provided, the return or payment won't be processed. Current quarter's adjustments to social security and Medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance. To apply using the Online Payment Agreement Application, go to IRS.gov/OPA. 625, available at IRS.gov/irb/2009-45_IRB#RP-2009-51. 966. The IRS is a proud partner with the National Center for Missing & Exploited Children (NCMEC). endobj Use the March 2022 revision of Form 941 only to report taxes for the quarter ending March 31, 2022. In certain cases, you must adjust the amounts you entered as social security and Medicare taxes in column 2 of lines 5a5d to figure your correct tax liability for this quarter's Form 941. If you don't properly report your liabilities when required or if youre a semiweekly schedule depositor and enter your liabilities on line 16 instead of on Schedule B (Form 941), you may be assessed an averaged FTD penalty. Form SS-4. The payroll tax credit election must See Pub.1635 to see if you need to apply for a new EIN. Aggregate Forms 941 are filed by agents approved by the IRS under section 3504. 15, Employer's Tax Guide, beginning with the Pub. Youre not authorizing your designee to bind you to anything (including additional tax liability) or to otherwise represent you before the IRS. If changes in law require additional changes to Form 941, the form and/or these instructions may be revised. How To Get Forms, Instructions, and Publications, Worksheet 1. Credit for Qualified Sick and Family Leave Wages Paid This Quarter of 2023 for Leave Taken After March 31, 2020, and Before April 1, 2021, Worksheet 2. Credit for Qualified Sick and Family Leave Wages Paid This Quarter of 2023 for Leave Taken After March 31, 2021, and Before October 1, 2021, Adjusting tax liability for nonrefundable credits claimed on lines 11a, 11b, and 11d, National Center for Missing & Exploited Children (NCMEC), Federal tax deposits must be made by electronic funds transfer (EFT), Current quarter's adjustments for tips and group-term life insurance, Qualified health plan expenses allocable to qualified sick leave and family leave wages, Collectively bargained defined benefit pension plan contributions, Collectively bargained apprenticeship program contributions, Reducing your deposits for the credit for qualified sick and family leave wages, collectively bargained defined benefit pension plan contributions, collectively bargained apprenticeship program contributions, Treasury Inspector General for Tax Administration. Then, you must file for every quarter after thatevery 3 monthseven if you have no taxes to report, unless youre a seasonal employer or are filing your final return. Securely download your document with other editable templates, any time, with PDFfiller. Use Worksheet 1 to figure the credit for leave taken after March 31, 2020, and before April 1, 2021. Don't change your tax liability on Schedule B (Form 941) by adjustments reported on any Forms 941-X. If you received notification to file Form 944, Employer's ANNUAL Federal Tax Return, you must file Form 944 annually; don't file Form 941 quarterly. If you can't pay the full amount of tax you owe, you can apply for an installment agreement online. 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. For 2023, the lookback period begins July 1, 2021, and ends June 30, 2022. 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. 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. To become and remain certified under the certification program, certified professional employer organizations (CPEOs) must meet various requirements described in sections 3511 and 7705 and related published guidance. Your financial institution may charge you a fee for payments made this way. Any uncollected employee share of social security and Medicare taxes on tips, and. Read the separate instructions before you complete Form 941. If a CPEO pays wages and other compensation to an individual performing services for you, and the services are covered by a CPEO contract, then the CPEO is generally treated for employment tax purposes as the employer, but only for wages and other compensation paid to the individual by the CPEO. 15. 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. You can pay the liability in full in 24 months. Form 941, Employer's Quarterly Federal Tax Return, was revised to take into account the limited availability of Covid-19 employment tax credits.The instructions were updated with requirements for claiming the remaining credits in 2022. See IP 2022(1). Part 1: Answer these questions for this quarter. Proc. What if You Reorganize or Close Your Business? Instructions available at tax.illinois.gov. The IRS uses two different sets of deposit rules to determine when businesses must deposit their social security, Medicare, and withheld federal income taxes. endobj 179, Gua Contributiva Federal para Patronos Puertorriqueos, will no longer be available after 2023. This adjustment may be a positive or a negative adjustment. If youre a semiweekly schedule depositor, attach Schedule B (Form 941). If you want to expand your designee's authorization, see Pub. 15 for more information. Enter the qualified taxable (subject to social security tax) sick leave wages you paid this quarter of 2023 to your employees for leave taken after March 31, 2020, and before April 1, 2021. An employers agent bears no insurance risk and is reimbursed on a cost-plus-fee basis for payment of sick pay and similar amounts. If you paid qualified sick leave wages and/or qualified family leave wages this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021, complete Step 1 and Step 2. However, qualified health plan expenses dont include amounts that the employee paid for with after-tax contributions. If you weren't required to make federal tax deposits (see Must You Deposit Your Taxes , earlier) or you're a monthly schedule depositor making a payment under the accuracy of deposits rule, you may pay the amount shown on line 14 by EFT, credit card, debit card, check, money order, or EFW. An employer's social security and medicare tax burden can also be calculated and reported via 941. This amount is also entered on Worksheet 2, Step 2, line 2h. Section 1 - Line Instructions Line 1: Enter gross wages, for federal income tax withholding These maximum amounts also reset and apply to leave taken after March 31, 2021, and before October 1, 2021. may request permission from DRS to file Form CT941 for only the calendar quarters in which they pay Connecticut wages. 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. 15. Qualified sick leave wages and qualified family leave wages paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021, are reported on line 5a. On any device & OS. 8. File Form W-3 and Copy A of Forms W-2 with the SSA on time and accurately. The lookback period is the 4 consecutive quarters ending on June 30 of the prior year.