The IRS uses two different sets of deposit rules to determine when businesses must deposit their social security, Medicare, and withheld federal income taxes. Type or print within the boxes. Line 1 - Enter the total number of employees who received wages, tips, or other compensation (like bonuses or commission) in the quarterly pay period. Amounts Under Certain Collectively Bargained Agreements Allocable to Qualified Family Leave Wages Reported on Line 26. 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. See the Instructions for Schedule D (Form 941) to determine whether you should file Schedule D (Form 941) and when you should file it. 15-A for more information about sick pay reporting. 15. Checking the box tells the IRS not to expect four Forms 941 from you throughout the year because you haven't paid wages regularly. If line 12 is more than line 13g, enter the difference on line 14. This share of social security and Medicare taxes isn't withheld from employees. Requesting to file Form 944 instead of Forms 941. Leave blank any data field (except lines 1, 2, and 12) with a value of zero. If changes in law require additional changes to Form 941, the form and/or these instructions may be revised. q kX}.Hwe`bdV8I0 G & If you sell or transfer your business during the quarter, you and the new owner must each file a Form 941 for the quarter in which the transfer occurred. The payroll tax credit may not be taken as a credit against income tax withholding, the employee share of social security tax, or the employee share of Medicare tax. 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). The amount entered on line 12 cant be less than zero. Any uncollected employee share of social security and Medicare taxes on tips, and. See Worksheet 2 to figure your credit. For more information about qualified family leave wages, go to IRS.gov/PLC. 15 and the Instructions for Schedule D (Form 941). . 1. 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. 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. 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. Refundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021, 13g. 963, Federal-State Reference Guide. 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. For example, you must generally report wages you pay during the 1st quarterwhich is January through Marchby April 30. Enter your name, EIN, Form 941, and the tax year and quarter on all attachments. 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. Generally, we won't ask about unfiled returns if at least one taxable return is filed each year. See section 11 of Pub. endstream If youre a third-party payer of sick pay and not an agent of the employer, don't include sick pay that you paid to policyholders' employees here if you gave the policyholders timely notice of the payments. 1032, available at IRS.gov/irb/2012-26_IRB#RR-2012-18. You also authorize your designee to do all of the following. For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, 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. The report should include charged tips (for example, credit and debit card charges) you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. Read the separate instructions before you complete Form 941. 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. Multiply line 2a(iv) by 6.2% (0.062). Don't use a credit or debit card to make federal tax deposits. 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). A fee may be charged to file electronically. For more information, see What if you can't pay in full, later. 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. Finalized versions of the 2022 Form 941, its instructions, and schedules were issued Feb. 28 by the Internal Revenue Service. Proc. If you reported more than $50,000 of taxes for the lookback period, youre a semiweekly schedule depositor. You remain responsible if the third party fails to perform any required action. Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021, 20. Federal law requires you, as an employer, to withhold certain taxes from your employees' pay. The refundable portion of the credit doesnt reduce the liability reported on line 16 or Schedule B (Form 941). 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). 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). Your financial institution may charge you a fee for payments made this way. 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. For more information, see the Instructions for Form 941-X, section 13 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. To tell the IRS that a particular Form 941 is your final return, check the box on line 17 and enter the final date you paid wages in the space provided. 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. Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC). Advance payment of COVID-19 credits ended. If you filed electronically, don't file a paper Form 941. Don't include tips on this line. You must complete Schedule B (Form 941) and submit it with your Form 941. See the instructions for, For purposes of the credit for qualified sick and family leave wages, qualified sick leave and 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 Emergency Paid Sick Leave Act (EPSLA) or the Emergency Family and Medical Leave Expansion Act (Expanded FMLA), as enacted under the FFCRA and amended for purposes of the ARP. 15. For more information, go to, Corporate officers or duly authorized agents may sign Form 941 by rubber stamp, mechanical device, or computer software program. Include as a negative adjustment on line 9 the total uncollected employee share of the social security and Medicare taxes. Enter the qualified health plan expenses allocable to qualified sick leave wages paid this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021. If youre a governmental employer, wages you pay aren't automatically exempt from social security and Medicare taxes. (electronic and paper coupons) and any payments submitted with Form IL-941 or Form IL-941-X previously filed for this period. Revised: 06/2022 Instructions for Form 941-SS - Introductory Material Future Developments Enter the nonrefundable portion of the credit for qualified sick and family leave wages from Worksheet 2, Step 2, line 2p. Complete all information and sign 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 . Application for Employer Identification Number (EIN) Use this form to apply for an employer identification number (EIN). Notify the IRS immediately if you change your business name, business address, or responsible party. See section 6 of Pub. For more information or to apply to become a CPEO, go to IRS.gov/CPEO. 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. The apprenticeship program contribution rate is the contribution rate that the employer is obligated to pay under the terms of a collective bargaining agreement for benefits under a registered apprenticeship program, as the rate is applied to contribution base units, as defined by section 4001(a)(11) of ERISA. 15. Total Taxes After Adjustments and Nonrefundable Credits, 13c. This amount is also entered on Worksheet 2, Step 2, line 2b. 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 nonrefundable portion of the credit for qualified sick and family leave wages for the quarter is $10,000. Instructions for Form 941-SS (06/2022) Employer's QUARTERLY Federal Tax ReturnAmerican Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands Section references are to the Internal Revenue Code unless otherwise noted. 06/29/2022. Multiply line 2a(ii) by 1.45% (0.0145). Your deposit schedule isn't determined by how often you pay your employees. Do not leave blank. 15. For more information about the payroll tax credit, see IRS.gov/ResearchPayrollTC. If you can't pay the full amount of tax you owe, you can apply for an installment agreement online. For religious exemptions, see section 4 of Pub. See section 13 of Pub. You will reconcile this difference on Form W-3. For more information about applying for a PTIN online, go to IRS.gov/PTIN. 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. If your third-party payer of sick pay that isn't your agent (for example, an insurance company) transfers the liability for the employer share of the social security and Medicare taxes to you, enter a negative adjustment on line 8 for the employee share of social security and Medicare taxes that were withheld and deposited by your third-party sick pay payer on the sick pay. For more information, see the Instructions for Form 941-X, section 13 of Pub. You may have to deposit the federal income taxes you withheld and both the employer and employee social security taxes and Medicare taxes. See Form 943 and Pub. 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. For more information about a CPEOs requirement to file electronically, see Rev. Rul. Form CT-941 Instructions (Rev. These schedules tell you when a deposit is due after you have a payday. 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). Certification as a CPEO may affect the employment tax liabilities of both the CPEO and its customers. Your written statement with the same wording as 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. These maximum amounts also reset and apply to leave taken after March 31, 2021, and before October 1, 2021. Additional information about EFTPS is also available in Pub. The amount from Form 6765, line 44, must then be reported on Form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities. 15. Part 1: Answer these questions for this quarter. 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. This amount is also entered on Worksheet 2, Step 2, line 2c. Always show an amount for cents, even if it is zero. Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. 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. 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. Before the beginning of each calendar year, determine which type of deposit schedule you must use. For purposes of qualified sick and family leave wages, collectively bargained apprenticeship program contributions are contributions for a calendar quarter that are: Paid or incurred by an employer on behalf of its employees to a registered apprenticeship program, which is an apprenticeship registered under the National Apprenticeship Act of August 16, 1937, and meets the standards of Federal Regulations under subpart A of Part 29 and Part 30 of title 29; Made based on an apprenticeship program contribution rate; and. 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. You can pay the liability in full in 24 months. An employer's social security and medicare tax burden can also be calculated and reported via 941. If you were required to make federal tax deposits, pay the amount shown on line 14 by EFT. Do not use this form to amend a previously filed Form CT941HHE. Form 941 for 2022: (Rev. Your Form IL-941 is due quarterly. 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. Go to IRS.gov/PDS for the current list of PDSs. Call us for information about processing your return. An employer isn't liable for the employer share of the social security and Medicare taxes on unreported tips until notice and demand for the taxes is made to the employer by the IRS in a Section 3121(q) Notice and Demand. Social security and Medicare taxes apply to the wages of household workers you pay $2,600 or more in cash wages in 2023. 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. You can apply for a PTIN online or by filing Form W-12. Quarterly Return of Maine Income Tax Withholding Instructions 2022 Maine Form 941ME Payroll processors who have authority to access, control, direct, transfer or disburse a client's funds must also provide evidence of a surety bond in an amount equal to the total of all local, state and federal tax payments and unemployment contributions remitted Additional Medicare Tax withheld from employees. Combine the amounts shown on lines 69 and enter the result on line 10. 15-A. * . The $100,000 tax liability threshold requiring a next-day deposit is determined before you consider any reduction of your liability for nonrefundable credits. <>stream The authorization will automatically expire 1 year from the due date (without regard to extensions) for filing your Form 941. Ministry Opportunities; Education Opportunities; Scholarship & Internship; Resources. You must include the full amount (both the nonrefundable and refundable portions) of the credit for qualified sick and family leave wages in your gross income for the tax year that includes the last day of any calendar quarter in which a credit is allowed. Collectively bargained defined benefit pension plan contributions. Also include sick pay paid by a third party that isn't your agent (for example, an insurance company) if you were given timely notice of the payments and the third party transferred liability for the employer's taxes to you. The election and determination of the credit amount that will be used against the employers payroll taxes are made on Form 6765, Credit for Increasing Research Activities. You must also withhold Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Form 5884-D is filed after the Form 941 for the quarter for which the credit is being claimed has been filed. Certification as a CPEO may affect the employment tax liabilities of both the CPEO and its customers. For details about the difference between tips and service charges, see Rev. 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. 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. 926 and Schedule H (Form 1040) for more information.