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 social security 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 social security tax from the notice, Enter the amount from Form 8974, line 12, for this quarter, Enter the amount to be claimed on Form 5884-C, line 11, for this quarter, Enter the amount to be claimed on Form 5884-D, line 12, for this quarter. For more information, see section 12 of Pub. Understanding Form 941 - Clergy Financial Resources See Highly compensated employee , later, for the definition. Once wages and tips exceed the $200,000 withholding threshold, include all tips your employees reported during the quarter, even if you were unable to withhold the employee tax of 0.9%. Instructions for Form 941 - Introductory Material Future Developments 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. Detach Form 941-V and send it with your payment and Form 941 to the address in the Instructions for Form 941. Use a minus sign (if possible) to show an adjustment that decreases the total taxes shown on line 6 instead of parentheses. If the amounts don't agree, you may be contacted by the IRS or the Social Security Administration (SSA). Advising clients to file Form 941-X for missed COVID-19 relief credits Don't change your tax liability on line 16 by adjustments reported on any Forms 941-X. 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. See section 13 of Pub. 15 for information about payments made under the accuracy of deposits rule. Reduction Act of 2022 (the IRA) increases the election amount to $500,000 for tax years beginning after December 31, 2022. 15 for details. 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. 2022 Instructions for Form 941 - Open Bible Central These instructions give you some background information about Form 941. CPEOs must generally file Form 941 and Schedule R (Form 941) electronically. You will reduce your total taxes by the amount of any uncollected employee share of social security and Medicare taxes on tips later on line 9; see, For more information on tips, see section 6 of Pub. 7) for reference). For EFTPS, go to EFTPS.gov or call 800-555-4477. Don't use your social security number (SSN) or individual taxpayer identification number (ITIN). See section 6 of Pub. 426, available at IRS.gov/irb/2017-03_IRB#RP-2017-14. 1122, available at IRS.gov/irb/2021-18_IRB#NOT-2021-24. Reminders Use the March 2022 revision of Form 941 only to report taxes for the quarter ending March 31, 2022. For details and required documentation, see Rev. See section 11 of Pub. Enter negative amounts using a minus sign (if possible). Prior revisions of Form 941 are available at IRS.gov/Form941 (select the link for All Form 941 Revisions under Other Items You May Find Useful). Form 941-SS, Employers QUARTERLY Federal Tax ReturnAmerican Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands; and Form 941-PR, Planilla para la Declaracin Federal TRIMESTRAL del Patrono, will no longer be available after the fourth quarter of 2023. The term legal holiday for deposit purposes includes only those legal holidays in the District of Columbia. To get more information about EFTPS or to enroll in EFTPS, go to, If you fail to submit a deposit transaction on EFTPS by 8 p.m. Eastern time the day before the date a deposit is due, you can still make your deposit on time by using the Federal Tax Collection Service (FTCS) to make a same-day wire payment. szM|#t 6F&og`0/ x(( [eJC&0(JM(=`k4B$7AF`+\X5}P$8ti On February 28, the IRS released: The revised 2022 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 IRS updated the forms to reflect the expiration of COVID-19-related relief provisions at . 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. Starting in the first quarter of 2023, the payroll tax credit is first used to reduce the employer share of social security tax up to $250,000 per quarter and any remaining credit reduces the employer share of Medicare tax for the quarter. About Form 941, Employer's Quarterly Federal Tax Return If federal income, social security, and Medicare taxes that must be withheld (that is, trust fund taxes) aren't withheld or aren't deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. To learn more about the information you will need to give your financial institution to make a same-day wire payment, go to, For electronic filing of Forms W-2, Wage and Tax Statement, go to, If you file Form 941 electronically, you can e-file and use EFW to pay the balance due in a single step using tax preparation software or through a tax professional. Inst 941 (Schedule B) Instructions for Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors. Changing from one form of business to anothersuch as from a sole proprietorship to a partnership or corporationis considered a transfer. For more information, go to, Corporate officers or duly authorized agents may sign Form 941 by rubber stamp, mechanical device, or computer software program. If youre the third-party sick pay payer and you transferred the liability for the employer share of the social security and Medicare taxes to the employer, enter a negative adjustment on line 8 for any employer share of these taxes required to be paid by the employer. Qualified Small Business Payroll Tax Credit for Increasing Research Activities, 11b. Take note: the revised version of Form 941 was released on January 26, 2022, but it's not yet ready for filing. If youre a semiweekly schedule depositor, attach Schedule B (Form 941). The amount shown on line 12 must equal the Total liability for quarter shown on line 16 or the Total liability for the quarter shown on Schedule B (Form 941). hZmSFOo,e1s\9=|I (3t$i#Hc8D The amount from Form 6765, line 44, must then be reported on Form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities. Approved section 3504 agents and CPEOs must complete and file Schedule R (Form 941) when filing an aggregate Form 941. Instructions for Form 941-X (PR), Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund (Puerto Rico Version) 0422. 1032, available at IRS.gov/irb/2012-26_IRB#RR-2012-18. 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. 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. 5a5e. 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. Ministry Opportunities; Education Opportunities; Scholarship & Internship; Resources. See the instructions for line 8 for an adjustment that you may need to make on Form 941 for sick pay. If you don't check either box or if you check both boxes, we will generally apply the overpayment to your next return. This amount of the employer share of social security tax can also be reduced by the nonrefundable portion of the credit. Important Information. If you reported more than $50,000 of taxes for the lookback period, youre a semiweekly schedule depositor. Multiply line 2g(ii) by 1.45% (0.0145), Enter any credit claimed under section 41 for increasing research activities with respect to any wages taken into account for the credit for qualified sick and family leave wages. 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. See the instructions for line 11d, earlier, for more information about qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 2021. For more information and rules about federal tax deposits, see Depositing Your Taxes, earlier, and section 11 of Pub. 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. To contact EFTPS using TRS for people who are deaf, hard of hearing, or have a speech disability, dial 711 and then provide the TRS assistant the 800-555-4477 number above or 800-733-4829. 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. For more information on paying your taxes using EFW, go to, You can pay the balance due shown on Form 941 by credit or debit card. For more information, see Federal tax deposits must be made by electronic funds transfer (EFT) under Reminders, earlier. Qualified health plan expenses allocable to qualified family leave wages (Form 941, Part 3, Employer share of Medicare tax on qualified family leave wages. If you participated in a statutory merger or consolidation, or qualify for predecessor-successor status due to an acquisition, you should generally file Schedule D (Form 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations. 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. 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. For more information about the payroll tax credit, see IRS.gov/ResearchPayrollTC. 15. Qualified health plan expenses allocable to qualified sick leave and family leave wages. 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. The amount to be credited or refunded to you needs to be presented as a negative number in Column 4. 2005-39, 2005-28 I.R.B. Aggregate Forms 941 are filed by agents approved by the IRS under section 3504. For more information on paying your taxes using EFW, go to IRS.gov/EFW. . Total Deposits and Refundable Credits, Part 2:Tell Us About Your Deposit Schedule and Tax Liability for This Quarter. 15. Proc. To learn more about the information you will need to give your financial institution to make a same-day wire payment, go to IRS.gov/SameDayWire. For more information on paying your taxes with a credit or debit card, go to, You may be eligible to apply for an installment agreement online if you can't pay the full amount of tax you owe when you file your return. 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.