For paid sick leave qualifying under (1), (2), or (3) above, the amount of qualified sick leave wages is determined at the employee's regular rate of pay, but the wages may not exceed $511 for any day (or portion of a day) for which the individual is paid sick leave. Generally, an EFT is made using the Electronic Federal Tax Payment System (EFTPS). If No Wages, Tips, and Other Compensation Are Subject to Social Security or Medicare Tax . The EPSLA, as amended for purposes of the ARP, provides different limitations for different circumstances under which qualified sick leave wages are paid. 06-Dec-2022 Share. See Notice 2020-22 and Notice 2021-24 for information on reducing deposits for certain credits. Additional Medicare Tax withheld from employees. Changing from one form of business to anothersuch as from a sole proprietorship to a partnership or corporationis considered a transfer. 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. Requesting to file Forms 941 instead of Form 944. If you can't pay the full amount of tax you owe, you can apply for an installment agreement online. 664, available at IRS.gov/irb/2020-17_IRB#NOT-2020-22; and Notice 2021-24, 2021-18 I.R.B. 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. 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. 1 Number of employees who received wages, tips, or other . Line 14 - Calculate balance due, if any. General Instructions: Understanding Form 941-X What Is the Purpose of Form 941-X? Federal Income Tax Withheld From Wages, Tips, and Other Compensation. Also, when you complete Form 941, be sure to check the box on the top of the form that corresponds to the quarter reported. 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 Current quarter's adjustments for tips and group-term life insurance , later. The social security wage base limit is $160,200. 15 applies. The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2022. The nonrefundable portion of the 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, is limited to the employer share of social security tax on wages paid in the quarter that is remaining after that share is first reduced by any credit claimed against the employer share of social security tax on Form 8974, line 12, for the qualified small business payroll tax credit for increasing research activities; any credit to be claimed on Form 5884-C, line 11, 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. 2005-39, 2005-28 I.R.B. Doing so enhances the accuracy of our scanning software. 11a. However, continue to withhold income and Medicare taxes for the whole year on all wages, including qualified sick leave wages paid in 2023, qualified family leave wages paid in 2023, and tips, even when the social security wage base of $160,200 has been reached. For details and required documentation, see Rev. For leave taken after March 31, 2021, and before October 1, 2021, the credit for qualified sick and family leave wages is reduced by the amount of the credit allowed under section 41 (for the credit for increasing research activities) with respect to wages taken into account for determining the credit for qualified sick and family leave wages; and any wages taken into account in determining the credit for qualified sick and family leave wages can't be taken into account as wages for purposes of the credits under sections 45A, 45P, 45S, and 51. Step 6: Figure your balance Line 8 Follow the instructions on the form. 3633 0 obj After an employee takes leave for 10 days, the employer must provide the employee paid leave (that is, qualified family leave wages) for up to 10 weeks. To become a CPEO, the organization must apply through the IRS Online Registration System. Don't reduce your total liability reported on line 16 by the refundable portion of the credit for qualified sick and family leave wages. All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. If you don't follow these guidelines, we will generally consider Form 941 filed when it is actually received. For 2023, the lookback period begins July 1, 2021, and ends June 30, 2022. "-HvPNbL$a4'2**\hD;Aaa ,F|e548Z$5a\"M You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. For more information about this credit, go to IRS.gov/Form5884D. Report unemployment taxes on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. You remain responsible if the third party fails to perform any required action. If none of these exceptions apply and you haven't filed a final return, you must file Form 941 each quarter even if you didn't pay wages during the quarter. Adjusting tax liability for nonrefundable credits claimed on lines 11a, 11b, and 11d. The employee retention credit is presented on Line 18a and Line 26a of the April 2022 revised Form 941-X. An official website of the United States Government. Use Form 941-X to correct errors on a Form 941 that you previously filed. 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. The tax is treated as accumulated by the employer on the Date of Notice and Demand as printed on the Section 3121(q) Notice and Demand. You must use EFT to make all federal tax deposits. 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. Enter the result on line 6. To use the same-day wire payment method, you will need to make arrangements with your financial institution ahead of time. For more information and rules about federal tax deposits, see Depositing Your Taxes, earlier, and section 11 of Pub. A positive balance in Column 4 represents an amount that you owe. For more information, see the instructions for, 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, The Stephen Beck, Jr., ABLE Act of 2014 required the IRS to establish a voluntary certification program for PEOs. Form 941-X is an adjusted return or claim for refund and is filed separately from Form 941. 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. Enter the federal income tax you withheld (or were required to withhold) from your employees on this quarter's wages, including qualified sick leave wages paid this quarter of 2023 for leave taken after March 31, 2020, and before October 1, 2021, and qualified family leave wages paid this quarter of 2023 for leave taken after March 31, 2020, and before October 1, 2021; tips; taxable fringe benefits; and supplemental unemployment compensation benefits. 830, available at, Qualified tax-exempt organizations that hire eligible unemployed veterans may be able to claim the work opportunity tax credit against their payroll tax liability using Form 5884-C. For more information, go to, 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. Your deposit schedule isn't determined by how often you pay your employees. See $100,000 Next-Day Deposit Rule in section 11 of Pub. 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. Approved section 3504 agents and CPEOs must complete and file Schedule R (Form 941) when filing an aggregate Form 941. Note: You must also complete the entity information above Part 1 on Form 941. Any remaining credit, after reducing the employer share of social security tax and the employer share of Medicare tax, is then carried forward to the next quarter. See the instructions for, 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. If you or your designee wants to terminate the authorization, write to the IRS office for your location using the Without a payment address under Where Should You File, earlier. The form allows employers to withhold federal income tax and other payroll taxes from each employee's paycheck and remit them to the IRS. Use the March 2023 revision of Form 941 to report taxes for the first quarter of 2023; don't use an earlier revision to report taxes for 2023. You must also withhold Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. There is no wage base limit for Medicare tax. 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. <>/MediaBox[0 0 612 792]/Parent 3626 0 R/Resources<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> This form is also used to calculate the employer's Social Security and Medicare tax contributions and additional taxes withheld. 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. Form 941-X is filed separately from Form 941. For more information about exempt wages, see section 15 of Pub. For more information, see the Instructions for Form 941-X, section 13 of Pub. Commas are optional. Toggle Navigation. 15 or go to IRS.gov/EmploymentTaxes. A highly compensated employee is an employee who meets either of the following tests. For more information, including an example, see frequently asked question 17 at IRS.gov/ETD. 2012-18. 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. If line 15 is under $1, we will send a refund or apply it to your next return only if you ask us in writing to do so. The portion of the credit used against payroll taxes is allowed in the first calendar quarter beginning after the date that the qualified small business filed its income tax return. 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. Maple Co. paid qualified sick and family leave wages on January 6 and January 20 for leave taken after March 31, 2020, and before April 1, 2021. Complete and mail Form 8822-B to notify the IRS of a business address or responsible party change. Don't include tips on this line. 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. These instructions give you some background information about Form 941. Certification as a CPEO may affect the employment tax liabilities of both the CPEO and its customers. 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. Otherwise, use parentheses. Unlike social security wages, there is no limit on the amount of wages subject to Medicare tax. Now Healthy Churches; Next . 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 credit for qualified sick and family leave wages consists of the: Qualified sick leave wages and/or qualified family leave wages; Qualified health plan expenses allocable to qualified sick leave and family leave wages; Collectively bargained defined benefit pension plan contributions, subject to the qualified leave wage limitations, allocable to the qualified sick and family leave wages; Collectively bargained apprenticeship program contributions, subject to the qualified leave wage limitations, allocable to the qualified sick and family leave wages; and. The following persons are authorized to sign the return for each type of business entity. Report only the wages you paid. Pubs. If you meet the de minimis exception based on the prior quarter and line 12 for the current quarter is $100,000 or more, you must provide a record of your federal tax liability. 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 . See Form 943 and Pub. 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. This share of social security and Medicare taxes isn't withheld from employees. Section references are to the Internal Revenue Code unless otherwise noted. 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. endobj In completing line 16 or Schedule B (Form 941), you take into account the payroll tax credit against the liability for the employer share of social security tax starting with the first payroll payment of the quarter that includes payments of wages subject to social security tax to your employees until you use up to $250,000 of credit against the employer share of social security tax and you then take into account any remaining payroll tax credit against the liability for the employer share of Medicare tax starting with the first payroll payment of the quarter that includes payments of wages subject to Medicare tax to employees. Your employees may be covered by law or by a voluntary Section 218 Agreement with the SSA. This amount is also entered on Worksheet 2, Step 2, line 2i. Additional information about EFTPS is also available in Pub. If a valid EIN isn't provided, the return or payment won't be processed. Revised: 06/2022 Instructions for Form 941-SS - Introductory Material Future Developments Your financial institution may charge you a fee for payments made this way. 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. For more information, see What if you can't pay in full, later. If you don't have an EIN, you may apply for one online by going to IRS.gov/EIN. What's New Social security and Medicare tax for 2023. 15. The EPSLA also limits each individual to a maximum of up to 80 hours of paid sick leave in total for leave taken after March 31, 2020, and before April 1, 2021. Always be sure the EIN on the form you file exactly matches the EIN the IRS assigned to your business. Unlike the federal government, Illinois does not require an annual reconciliation return. See section 6 of Pub. This credit is claimed on Form 5884-D (not on Form 941). If changes in law require additional changes to Form 941, the form and/or these instructions may be revised. To contact EFTPS using Telecommunications Relay Services (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. 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. Also, don't use Form 941 to report unemployment taxes. 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. 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. Don't reduce your monthly tax liability reported on line 16 or your daily tax liability reported on Schedule B (Form 941) below zero. 426, available at IRS.gov/irb/2017-03_IRB#RP-2017-14. Enter the collectively bargained defined benefit pension plan contributions and collectively bargained apprenticeship program contributions allocable to qualified family leave wages paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021. Enter the result on line 5e. Consistent with the entries on line 16 or Schedule B (Form 941), the payroll tax credit should be taken into account in making deposits of employment tax. Revision Date. Make entries on Form 941 as follows to enable accurate scanning and processing. To become a CPEO, the organization must apply through the IRS Online Registration System. For more information about the payroll tax credit, see IRS.gov/ResearchPayrollTC. Use Worksheet 1 to figure the credit for leave taken after March 31, 2020, and before April 1, 2021. 15-T, Federal Income Tax Withholding Methods. If you filed Form 944 in either 2021 or 2022, your lookback period is the 2021 calendar year. <>stream At the end of the annual review, we notify you if your payment frequency changes. This amount is also entered on Worksheet 1, Step 2, line 2b. Forms 941-SS and 941-PR discontinued after 2023. A son or daughter includes a biological child, adopted child, stepchild, foster child, legal ward, or a child for whom the employee assumes parental status and carries out the obligations of a parent. 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. Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Reported on Line 23, 25. Don't change your tax liability on Schedule B (Form 941) by adjustments reported on any Forms 941-X. . 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, check the first box on line 16 and go to Part 3. 15-A for more information about sick pay reporting. 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. You must deposit all depository taxes electronically by EFT. Pub. Form 941-X is filed separately from Form 941. If line 12 is $2,500 or more and line 12 on the prior quarterly return was $2,500 or more, or if you incurred a $100,000 next-day deposit obligation during the current quarter. Your Form 941 is due by the last day of the month that follows the end of the quarter. Enter the amount of Medicare tax from Form 941, Part 1. 2. The 1099 and W-2 experts! 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. Also attach a statement to your return showing the name of the person keeping the payroll records and the address where those records will be kept. However, don't use EFW to make federal tax deposits. For more information about qualified family leave wages, go to IRS.gov/PLC. This document is used by employers to report income taxes, social security tax, and Medicare tax withheld from employees' 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. 51, 80, and 179 discontinued after 2023. Complete lines 23, 24, and 25 only if qualified sick leave wages were paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021. 12/22) 941HHE 1222W 01 9999 Form CT941 HHE is used to reconcile annual Connecticut income tax withholding from household employee wages only. Employers of household employees don't usually file Form 941. The employee was a 5% owner at any time during the year or the preceding year. 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 more information on tips, see section 6 of Pub. 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. For example, you may file Form 941 by May 10 if you made timely deposits in full payment of your taxes for the 1st quarter. Churches file Form 941 four times a year to report income taxes, social security tax, or Medicare tax withheld from employees' paychecks. 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. If no wages, tips, and other compensation on line 2 are subject to social security or Medicare tax, check the box on line 4. 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 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. 06/29/2022. Instead, report them on Form 8027. Give us any information that is missing from your return. You can avoid paying penalties and interest if you do all of the following. Proc. The rate of pay must be at least two-thirds of the employees regular rate of pay (as determined under the Fair Labor Standards Act of 1938), multiplied by the number of hours the employee otherwise would have been scheduled to work. 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. 2005-39, 2005-28 I.R.B. 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. 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. Section 1 - Line Instructions Line 1: Enter gross wages, for federal income tax withholding Requesting to file Form 944 instead of Forms 941. 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. The IRS uses two different sets of deposit rules to determine when businesses must deposit their social security, Medicare, and withheld federal income taxes. If youre a governmental employer, wages you pay aren't automatically exempt from social security and Medicare taxes.