[US] COVID-19 Updates to Form 941

The IRS released a draft version of Form 941 on April 29, 2020. The new form has significant changes allowing for reporting of FFCRA and CARES Act Covid-19 payroll tax relief policies.

What has changed

Effective date and resources

Sick and Family Leave Wages

The new credit for qualified sick and family leave wages is reported on line 11b and, if applicable, line 13c.

The employee share of social security tax on qualified sick and family leave wages is reported on lines 5a(i) and 5a(ii).

Qualified sick and family leave wages aren’t subject to the employer share of social security tax. Qualified health plan expenses allocable to sick and family leave wages are reported on lines 19 and 20.

Employee Retention Credit

The new employee retention credit is reported on line 11c and, if applicable, line 13d.

Qualified wages (excluding qualified health plan expenses) for the employee retention credit are reported on line 21. Qualified health plan expenses allocable to the qualified wages for the employee retention credit are reported on line 22.

For the second quarter Form 941 only, qualified wages (excluding qualified health plan expenses) for the employee retention credit and qualified health plan expenses allocable to the qualified wages for the period from March 13, 2020, to March 31, 2020, are reported on lines 24 and 25, respectively. 

Deferral of Employer Social Security Tax

Employers can defer the deposit and payment of the employer share of social security tax otherwise due during the calendar quarter. The amount of deferral is reported on line 13b

Form 7200

Employers that requested an advance of the sick and family leave credit and/or the employee retention credit would have filed a Form 7200, Advance Payment of Employer Credits Due to COVID-19, during the quarter. The amount of all advances received from Forms 7200 filed during the quarter is reported on line 13f

Effective Date

The new form will be used when filing the second quarter, Employer’s Quarterly Federal Tax Return, due July 31st, 2020.

Draft Form

Instructions

 

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