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. See Terminating a business in the General Instructions for Forms W-2 and W-3 for information about earlier dates for the expedited furnishing and filing of Forms W-2 when a final Form 941 is filed. 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. Use e-file and EFTPS to your benefit. Use 10-point Courier font (if possible) for all entries if youre typing or using a computer to complete your form. 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. The preparer must give you a copy of the return in addition to the copy to be filed with the IRS. Enter the result on line 5e. 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. Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Reported on Line 23, 25. For more information or to apply to become a CPEO, go to IRS.gov/CPEO. Employers with fewer than 500 employees and 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, as amended for purposes of the ARP, and/or provide paid family leave to employees that otherwise meets the requirements under the Expanded FMLA, as amended for purposes of the ARP, for leave taken after March 31, 2021, and before October 1, 2021. Generally, we won't ask about unfiled returns if at least one taxable return is filed each year. Deposit or pay your taxes when they are due, unless you meet the requirements discussed in Notice 2020-22 and Notice 2021-24. For more information on paying your taxes using EFW, go to IRS.gov/EFW. Nonrefundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2020, and before April 1, 2021 (line 11b). 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. If this question doesn't apply to you, leave the box blank. 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. See section 11 of Pub. For more information on making federal tax deposits, see section 11 of Pub. Complete Business Information First, complete your basic details in Box 1 - Entering Employer Details In box 1, enter the EIN, name, business name, and address. As the IRS explains: "Federal law requires you, as an employer, to withhold certain taxes from your employees' pay. CPEOs must generally file Form 941 and Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, electronically. Therefore, for leave taken after March 31, 2020, and before April 1, 2021, the maximum amount of paid sick leave wages can't exceed $5,110 for an employee for leave under (1), (2), or (3), and it can't exceed $2,000 for an employee for leave under (4), (5), or (6). If you will claim this credit on Form 5884-D and you're also claiming a credit for qualified sick and family leave wages for leave taken before April 1, 2021, you must include any credit that will be claimed on Form 5884-D on Worksheet 1 for that quarter. Also include here any excise taxes you were required to withhold on golden parachute payments (section 4999). 15-A. Under an installment agreement, you can pay what you owe in monthly installments. Enter the amount before payroll deductions. If you filed Form 944 in either 2021 or 2022, your lookback period is the 2021 calendar year. Enter the nonrefundable portion of the credit for qualified sick and family leave wages from Worksheet 1, Step 2, line 2j. 426, available at IRS.gov/irb/2017-03_IRB#RP-2017-14. Don't include tips on this line. 966. If a third-party payer of sick pay is also paying qualified sick leave wages on behalf of an employer, the third party would be making the payments as an agent of the employer. For more information about a CPEOs requirement to file electronically, see Rev. 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. 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. 12/15/2022 Inst 940 (pr) Instructions for Form 940 (PR), Employer's Annual Federal Unemployment (FUTA) Tax Return (Puerto Rico Version) 2022 12/15/2022 Form 940 (pr) (Schedule A) . 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 . For more information about filing Form 941 electronically, see Electronic filing and payment, earlier. %%EOF Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021, 11d. Social security and Medicare taxes apply to election workers who are paid $2,200 or more in cash or an equivalent form of compensation in 2023. <>/MediaBox[0 0 612 792]/Parent 3626 0 R/Resources<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> 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. Enter the amount of social security tax from Form 941, Part 1. Enter the collectively bargained defined benefit pension plan contributions and collectively bargained apprenticeship program contributions allocable to qualified sick leave wages paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021. 1 Number of employees who received wages, tips, or other . 12/13/2022 12:17:37 PM . Type or print within the boxes. Generally, you should have a balance due only if your total taxes after adjustments and nonrefundable credits (line 12) for the current quarter or prior quarter are less than $2,500, and you didn't incur a $100,000 next-day deposit obligation during the current quarter. If the questions don't apply, leave them blank and go to Part 4. The amount of collectively bargained defined benefit pension plan contributions allocated to qualified sick leave wages and/or qualified family leave wages in a quarter is the pension 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. 9. If you filed electronically, don't file a paper Form 941. Qualified sick leave wages 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% (0.062). 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. You can view, download, or print most of the forms, instructions, and publications you may need at IRS.gov/Forms. The amount from Form 8974, line 12, or, if applicable, line 17, is reported on line 11a. If you discover an error on a previously filed Form 941, or if you otherwise need to amend a previously filed Form 941, make the correction using Form 941-X. PEOs handle various payroll administration and tax reporting responsibilities for their business clients and are typically paid a fee based on payroll costs. Report the entire amount of these tips on line 5b (Taxable social security tips), line 5c (Taxable Medicare wages and tips), and, if the withholding threshold is met, line 5d (Taxable wages and tips subject to Additional Medicare Tax withholding). Leave the Trade name line blank if it is the same as your Name.. Proc. You must deposit all depository taxes electronically by EFT. Finalized versions of the 2022 Form 941, its instructions, and schedules were issued Feb. 28 by the Internal Revenue Service. Information about any future developments affecting Form 940 will be posted at the IRS (irs.gov/form940). Generally, enter the business (legal) name you used when you applied for your EIN. For more information, see What if you can't pay in full, later. 12. For details on the deposit rules, see section 11 of Pub. An employers agent bears no insurance risk and is reimbursed on a cost-plus-fee basis for payment of sick pay and similar amounts. Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021. If you reported more than $50,000 of taxes during the lookback period, youre a semiweekly schedule depositor. About IRS; Careers; Operations and Budget; Tax Statistics; Help; 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. Employers of farm employees don't file Form 941 for wages paid for agricultural labor. Rose Co. is an employer with a calendar tax year that filed its timely 2022 income tax return on April 18, 2023. The third quarter of 2023 is the first quarter that begins after Rose Co. filed the income tax return making the payroll tax credit election. For example, if youre a sole proprietor, enter Haleigh Smith on the Name line and Haleigh's Cycles on the Trade name line. taxes for 2022. These maximum amounts also reset and apply to leave taken after March 31, 2021, and before October 1, 2021. To become a CPEO, the organization must apply through the IRS Online Registration System at IRS.gov/CPEO. Qualified health plan expenses allocable to qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021 (Form 941, Part 3. You must use the U.S. Respond to certain IRS notices that youve shared with your designee about math errors and return preparation. Enter the qualified taxable (subject to social security tax) family leave wages you paid this quarter of 2023 to your employees for leave taken after March 31, 2020, and before April 1, 2021. The federal income tax withholding tables are included in Pub. See the instructions for line 16, later, for information on adjusting tax liabilities reported on line 16 or Schedule B (Form 941) for nonrefundable credits. The IRS won't send notices to your designee. Employer's Quarterly Federal Tax Return - American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands. After you contact the IRS, the IRS will send you a written notice that your filing requirement has been changed to Forms 941. Advance payment of COVID-19 credits ended. You may pay the amount with Form 941 or you may deposit the amount. Number of Employees Who Received Wages, Tips, or Other Compensation, 3. Federal Income Tax Withheld From Wages, Tips, and Other Compensation. If youre a monthly schedule depositor, complete the deposit schedule on line 16. For more information, see the line 16 instructions, later. 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). Enter the nonrefundable portion of the credit for qualified sick and family leave wages from Worksheet 2, Step 2, line 2p. If you pay by check or money order, make it payable to United States Treasury. Enter your EIN, Form 941, and the tax period (1st Quarter 2023, 2nd Quarter 2023, 3rd Quarter 2023, or 4th Quarter 2023) on your check or money order. 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. The refundable portion of the credit doesnt reduce the liability reported on line 16 or Schedule B (Form 941). 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. If youre a governmental employer, wages you pay aren't automatically exempt from social security and Medicare taxes. 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. Current quarter's adjustments for tips and group-term life insurance. 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. Otherwise, you can go to IRS.gov/OrderForms to place an order and have them mailed to you. The employer is required to do the reporting and payment of employment taxes with respect to the qualified sick leave wages and claim the credit for the qualified sick leave wages, unless the employer has an agency agreement with the third-party payer that requires the third-party payer to do the collecting, reporting, and/or paying or depositing employment taxes on the qualified sick leave wages. See the instructions for, 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. For more information about exempt wages, see section 15 of Pub. Securely download your document with other editable templates, any time, with PDFfiller. 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. For details and required documentation, see Rev. This may result in penalties. If you don't receive this notice, you must file Forms 941 for calendar year 2023. 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. Don't change your tax liability on Schedule B (Form 941) by adjustments reported on any Forms 941-X. 7) for reference). The $100,000 tax liability threshold requiring a next-day deposit is determined before you consider any reduction of your liability for nonrefundable credits. Please check with your financial institution regarding availability, deadlines, and costs. 1244), or submit a written statement or electronic tip record.