The ARP resets this limit at 80 hours of paid sick leave for leave taken after March 31, 2021, and before October 1, 2021. This amount is also entered on Worksheet 1, Step 2, line 2f. If you haven't received your EIN by the due date of Form 941, file a paper return and write Applied For and the date you applied in this entry space. Enter the refundable portion of the credit for qualified sick and family leave wages from Worksheet 1, Step 2, line 2k. Commas are optional. 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. Number of Employees Who Received Wages, Tips, or Other Compensation, 3. If you're a third-party payer of sick pay that isn't an agent (for example, an insurance company) and you're claiming the credit for qualified sick and family leave wages for amounts paid to your own employees, the amount of the employer share of social security tax reported on line 5a must be reduced by any adjustment you make on line 8 for the employer share of social security tax transferred to your client. You can view, download, or print most of the forms, instructions, and publications you may need at IRS.gov/Forms. If you don't receive this notice, you must file Forms 941 for calendar year 2023. Although you may pay qualified sick and family leave wages in 2023 for leave taken after March 31, 2020, and before October 1, 2021, you may no longer request an advance payment of any credit on Form 7200, Advance Payment of Employer Credits Due to COVID-19. 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. Line 7 Follow the instructions on the form. 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 qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021. For more information, see What if you can't pay in full, later. Proc. 2017-14, 2017-3 I.R.B. Report only the wages you paid. What if You Reorganize or Close Your Business? The second part of the template is the Payment Voucher which must be completed if the employer makes a payment with this record. Your financial institution may charge you a fee for payments made this way. 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. 3767 0 obj Employers of farm employees don't file Form 941 for wages paid for agricultural labor. Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. 15. In the first quarter of 2023, Maple Co. had pay dates of January 6, January 20, February 3, February 17, March 3, March 17, and March 31. Additional Medicare Tax is only imposed on the employee. Qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 2021 (Form 941, Part 3, Qualified sick leave wages included on Form 941, Part 3, line 23, that were not included as wages reported on Form 941, Part 1, lines 5a and 5c, because the qualified sick leave wages were excluded from the definition of employment under sections 3121(b)(1)(22), Qualified sick leave wages included on Form 941, Part 3, line 23, that were not included as wages reported on Form 941, Part 1, line 5a, because the qualified sick leave wages were limited by the social security wage base. Changing from one form of business to anothersuch as from a sole proprietorship to a partnership or corporationis considered a transfer. You can choose to ignore test (2) if the employee wasnt also in the top 20% of employees when ranked by pay for the preceding year. Corporate officers or duly authorized agents may sign Form 941 by rubber stamp, mechanical device, or computer software program. Don't file Schedule B (Form 941) with your Form 941 if youre a monthly schedule depositor. Use Form 941-X to correct errors on a Form 941 that you previously filed. 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. If youre a monthly schedule depositor, complete the deposit schedule on line 16. 963, Federal-State Reference Guide. Amounts Under Certain Collectively Bargained Agreements Allocable to Qualified Family Leave Wages Reported on Line 26. For more information, see section 10 of Pub. 15-A. See Deposit Penalties in section 11 of Pub. The social security wage base limit is $160,200. Important Information. If you filed Form 944 in either 2021 or 2022, your lookback period is the 2021 calendar year. Enter the total on line 11g. Generally, we won't ask about unfiled returns if at least one taxable return is filed each year. Qualified health plan expenses allocable to qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 2021 (Form 941, Part 3. Don't resubmit requests you've already sent us. 625, available at IRS.gov/irb/2009-45_IRB#RP-2009-51. For more information, including an example, see frequently asked question 17 at IRS.gov/ETD. 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. Each time you pay wages, you must withholdor take out of your employees' paycertain amounts for federal income tax, social security tax, and Medicare tax. A business day is any day other than a Saturday, Sunday, or legal holiday. <> If it doesn't, your tax deposits and payments may not be counted as timely. How To Get Forms, Instructions, and Publications, Worksheet 1. 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, Worksheet 2. Credit for Qualified Sick and Family Leave Wages Paid This Quarter of 2023 for Leave Taken After March 31, 2021, and Before October 1, 2021, Adjusting tax liability for nonrefundable credits claimed on lines 11a, 11b, and 11d, National Center for Missing & Exploited Children (NCMEC), Federal tax deposits must be made by electronic funds transfer (EFT), Current quarter's adjustments for tips and group-term life insurance, Qualified health plan expenses allocable to qualified sick leave and family leave wages, Collectively bargained defined benefit pension plan contributions, Collectively bargained apprenticeship program contributions, Reducing your deposits for the credit for qualified sick and family leave wages, collectively bargained defined benefit pension plan contributions, collectively bargained apprenticeship program contributions, Treasury Inspector General for Tax Administration. See the instructions for line 11b for information about the credit for qualified sick and family leave wages for leave taken after March 31, 2020, and before April 1, 2021. 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 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. Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages Reported on Line 26, 28. 15 for details. Type or print within the boxes. 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. IL-941 Instructions (R-12/22) Page 2 of 10 Form IL-941 Information and Instructions. "-HvPNbL$a4'2**\hD;Aaa ,F|e548Z$5a\"M You may have to deposit the federal income taxes you withheld and both the employer and employee social security taxes and Medicare taxes. Don't include any amount that you didn't deposit because you reduced your deposits in anticipation of the credit for qualified sick and family leave wages, as discussed in Notice 2020-22 and Notice 2021-24. For the IRS mailing address to use if youre using a PDS, go to IRS.gov/PDSstreetAddresses. The employer must include this amount on the appropriate line of the record of federal tax liability (Part 2 of Form 941 for a monthly schedule depositor or Schedule B (Form 941) for a semiweekly schedule depositor). See Pub. box address. See the instructions for, Enter the total wages, including qualified sick leave wages and qualified family leave wages paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021; sick pay; and taxable fringe benefits subject to social security taxes you paid to your employees during the quarter. If No Wages, Tips, and Other Compensation Are Subject to Social Security or Medicare Tax . There is no wage base limit for Medicare tax. You must complete all three pages of Form 941 and sign on page 3. Enter the number of employees on your payroll for the pay period including March 12, June 12, September 12, or December 12, for the quarter indicated at the top of Form 941. Otherwise, the IRS will expect a return to be filed for each quarter. 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). Your filing address may have changed from that used to file your employment tax return in prior years. If a valid EIN isn't provided, the return won't be accepted. Collectively bargained apprenticeship program contributions. Rul. 426, available at IRS.gov/irb/2017-03_IRB#RP-2017-14. Always show an amount for cents, even if it is zero. Monthly 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. Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC). This amount is also entered on Worksheet 2, Step 2, line 2i. These instructions give you some background information about Form 941. Complete lines 19 and 20 only if qualified health plan expenses allocable to qualified sick leave wages and/or qualified family leave wages were paid this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021. To become a CPEO, the organization must apply through the IRS Online Registration System. If line 12 is more than line 13g, enter the difference on line 14. Use 10-point Courier font (if possible) for all entries if youre typing or using a computer to complete your form. Enter the amount of the credit from Form 8974, line 12 or, if applicable, line 17. 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. Complete a blank sample electronically to save yourself time and money. Check the third box on line 16. 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 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. You must receive written notice from the IRS to file Form 944 instead of Forms 941 before you may file this form. 15, Pub. You may also apply for an EIN by faxing or mailing Form SS-4 to the IRS. However, with respect to certain employees covered by a CPEO contract, you may also be treated as an employer of the employees and, consequently, may also be liable for federal employment taxes imposed on wages and other compensation paid by the CPEO to such employees. Before the beginning of each calendar year, determine which type of deposit schedule you must use. Add the column 2 amounts on lines 5a5d. The credit for qualified sick and family leave wages consists of the qualified sick leave wages, the qualified family leave wages, the qualified health plan expenses allocable to those wages, and the employer share of Medicare tax allocable to those wages. If these unpaid taxes can't be immediately collected from the employer or business, the trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, or paying over these taxes, and who acted willfully in not doing so. Forms 941-SS and 941-PR discontinued after 2023. 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). Employer's Quarterly Federal Tax Return - American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands. 15. 830, available at IRS.gov/irb/2013-52_IRB#RP-2013-39. Paid preparers must sign paper returns with a manual signature. Form W-2 which has the required information about the EIC on the back of Copy B. If youre a monthly schedule depositor and accumulate a $100,000 tax liability on any day during the deposit period, you become a semiweekly schedule depositor on the next day and remain so for at least the rest of the calendar year and for the following calendar year. If changes in law require additional changes to Form 941, the form and/or these instructions may be revised. The amounts entered on line 16 are a summary of your monthly tax liability, not a summary of deposits you made. Ministry Opportunities; Education Opportunities; Scholarship & Internship; Resources. Employers that would otherwise be required to file Form 944 may contact the IRS to request to file quarterly Forms 941 instead of annual Form 944. However, qualified health plan expenses dont include amounts that the employee paid for with after-tax contributions. Your business should have only one EIN. 2013-39, 2013-52 I.R.B. However, don't use EFW to make federal tax deposits. p wC %m66(E+,#Tm9NbD0$I"B=4"! For more information on the credit for qualified sick and family leave wages, go to IRS.gov/PLC. Doing so enhances the accuracy of our scanning software. 1. Qualified sick leave wages and qualified family leave wages paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021, are reported on line 5a. The refundable portion of the credit is allowed after the employer share of social security tax is reduced to zero by nonrefundable credits that are applied against the employer share of social security tax. See Box 1Wages, tips, other compensation in the General Instructions for Forms W-2 and W-3 for details. If youre not sure your total tax liability for the current quarter will be less than $2,500 (and your liability for the prior quarter wasn't less than $2,500), make deposits using the semiweekly or monthly rules so you won't be subject to failure-to-deposit (FTD) penalties. See $100,000 Next-Day Deposit Rule in section 11 of Pub. Section 3121(q) Notice and DemandTax Due on Unreported Tips. 179, Gua Contributiva Federal para Patronos Puertorriqueos, will no longer be available after 2023. In Part 3, answer only those questions that apply to your business. 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 the instructions for line 11b, line 11d, line 13c, and line 13e, later. 15-A for more information about sick pay reporting and the procedures for transferring the liability to the employer. See the instructions for line 11b and line 11d, later, for more information on these credits. Spend less time worrying about taxes and more time running your business. If you weren't required to make federal tax deposits (see Must You Deposit Your Taxes , earlier) or you're a monthly schedule depositor making a payment under the accuracy of deposits rule, you may pay the amount shown on line 14 by EFT, credit card, debit card, check, money order, or EFW. If you made timely deposits in full payment of your taxes for the quarter, you may file by the 10th day of the 2nd month that follows the end of the quarter. A highly compensated employee is an employee who meets either of the following tests. Employers use Form 941 to: Report income taxes, Social Security tax, or Medicare tax withheld from employee's paychecks. If a transfer occurs, you may need a new EIN. Form CT-941 Instructions (Rev. However, employers that pay qualified sick and family leave wages in 2023 for leave taken after March 31, 2020, and before October 1, 2021, are eligible to claim a credit for qualified sick and family leave wages in the quarter of 2023 in which the qualified wages were paid. These schedules tell you when a deposit is due after you have a payday. For more information, see section 12 of Pub. For more information about a 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. The term nonrefundable means the portion of the credit which is limited by law to the amount of certain taxes. See section 13 of Pub. For purposes of this credit, qualified sick leave wages and 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 EPSLA or Expanded FMLA, as enacted under the FFCRA and amended for purposes of the ARP. For an EFTPS deposit to be on time, you must submit the deposit by 8 p.m. Eastern time the day before the date the deposit is due. Mail your return to the address listed for your location in the table that follows. Generally, don't complete this section if youre filing the return as a reporting agent and have a valid Form 8655 on file with the IRS. If both an employer and a section 3504 authorized agent (or CPEO or other third-party payer) paid wages to an employee during a quarter, both the employer and the section 3504 authorized agent (or CPEO or other third-party payer, if applicable) should file Form 941 reporting the wages each entity paid to the employee during the applicable quarter and issue Forms W-2 reporting the wages each entity paid to the employee during the year. The IRS Form 941 is an Employer's Quarterly Tax Return. . If the due date falls on a Saturday, Sunday, or legal holiday, . Enter the amount of Medicare tax from Form 941, Part 1. For more information about the payroll tax credit, see IRS.gov/ResearchPayrollTC. 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. Amounts Under Certain Collectively Bargained Agreements Allocable to Qualified Sick Leave Wages Reported on Line 23, 26. 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. Include as a negative adjustment on line 9 the total uncollected employee share of the social security and Medicare taxes. Your financial institution may charge you a fee for payments made this way. . Qualified sick leave wages and qualified family leave wages paid this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021, are reported on lines 5a(i) and 5a(ii), respectively. Also see Adjusting tax liability for nonrefundable credits claimed on lines 11a, 11b, and 11d , later. This form is also used to calculate the employer's Social Security and Medicare tax contributions and additional taxes withheld. 966. the "look-back" period is July 1, 2021, through June 30, 2022. 51, Agricultural Employers Tax Guide; Pub. 9. June 2022): fill, sign, print and send online instantly. A CPEO is generally treated for employment tax purposes as the employer of any individual who performs services for a customer of the CPEO and is covered by a contract described in section 7705(e)(2) between the CPEO and the customer (CPEO contract), but only for wages and other compensation paid to the individual by the CPEO. 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. 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. Do not use this form to amend a previously filed Form CT941HHE. Certification as a CPEO may affect the employment tax liabilities of both the CPEO and its customers. If the amounts don't agree, you may be contacted by the IRS or the Social Security Administration (SSA). 2005-39, 2005-28 I.R.B. Total social security and Medicare taxes. To request to file quarterly Forms 941 to report your social security and Medicare taxes for the 2023 calendar year, you must either call the IRS at 800-829-4933 between January 1, 2023, and April 3, 2023, or send a written request postmarked between January 1, 2023, and March 15, 2023.