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. 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. Proc. The preparer must give you a copy of the return in addition to the copy to be filed with the IRS. 15-A for more information about sick pay reporting. Partnership (including an LLC treated as a partnership) or unincorporated organizationA responsible and duly authorized partner, member, or officer having knowledge of its affairs. 2012-18. No report is required for months when tips are less than $20. "-HvPNbL$a4'2**\hD;Aaa ,F|e548Z$5a\"M 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. A draft version of the 2022 Form 941, Employer's Quarterly Federal Tax Return, was released Jan. 26 by the Internal Revenue Service. 426, available at IRS.gov/irb/2017-03_IRB#RP-2017-14. If the employer has an agency agreement with the third-party payer, the third-party payer includes the qualified sick leave wages on the third party's aggregate Form 941, claims the sick leave credit on behalf of the employer on the aggregate Form 941, and separately reports the credit allocable to the employers on Schedule R (Form 941). If we receive Form 941 after the due date, we will treat Form 941 as filed on time if the envelope containing Form 941 is properly addressed, contains sufficient postage, and is postmarked by the U.S. . Line 7 Follow the instructions on the form. 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 federal income, social security, and Medicare taxes that must be withheld (that is, trust fund taxes) aren't withheld or aren't deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. Portable Document Format (PDF) forms on IRS.gov have fillable fields with acceptable font specifications. The Stephen Beck, Jr., ABLE Act of 2014 required the IRS to establish a voluntary certification program for PEOs. Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Then, you must file for every quarter after thatevery 3 monthseven if you have no taxes to report, unless youre a seasonal employer or are filing your final return. If youre required to make deposits and instead pay the taxes with Form 941, you may be subject to a penalty. Regardless of any boxes you check or don't check on line 15, we may apply your overpayment to any past due tax account that is shown in our records under your EIN. There are certain conditions you must meet to enter into and maintain an installment agreement, such as paying the liability within 24 months, and making all required deposits and timely filing tax returns during the length of the agreement. Facebook; Twitter; Linkedin; Print; Footer Navigation. 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. Collectively bargained defined benefit pension plan contributions. Enter the total number of Forms W-2 reporting Illinois withholding you issued for the entire year. 664, available at IRS.gov/irb/2020-17_IRB#NOT-2020-22; and Notice 2021-24, 2021-18 I.R.B. 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. 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. For tax years beginning before January 1, 2023, a qualified small business may elect to claim up to $250,000 of its credit for increasing research activities as a payroll tax credit. Respond to certain IRS notices that youve shared with your designee about math errors and return preparation. If No Wages, Tips, and Other Compensation Are Subject to Social Security or Medicare Tax . Include all tips your employees reported during the quarter, even if you were unable to withhold the employee tax of 1.45%. 625, available at IRS.gov/irb/2009-45_IRB#RP-2009-51. These qualified health plan expenses are amounts paid or incurred by the employer to provide and maintain a group health plan but only to the extent such amounts are excluded from the employees income as coverage under an accident or health plan. To notify employees about the EIC, you must give the employees one of the following items. Inst 941 (PR) (Schedule B) Instructions for Schedule B (Form 941) (PR), Report of Tax Liability for Semiweekly Schedule Depositors (Puerto Rico Version) 0622. Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. If you reported more than $50,000 of taxes for the lookback period, youre a semiweekly schedule depositor. 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. The payroll tax credit election must See Seasonal employers and If Your Business Has Closed, earlier. 0 3632 0 obj If your net adjustment during a month is negative and it exceeds your total tax liability for the month, don't enter a negative amount for the month. 2012-18, 2012-26 I.R.B. Add lines 2a and 2a(i), Qualified sick leave wages excluded from the definition of employment under sections 3121(b)(1)(22). The employee received more than $135,000 in pay for the preceding year. Use the March 2022 revision of Form 941 only to report taxes for the quarter ending March 31, 2022. These qualified health plan expenses are amounts paid or incurred by the employer to provide and maintain a group health plan but only to the extent such amounts are excluded from the employees income as coverage under an accident or health plan. Who should file Form 941 2022? You can't use your PTIN in place of the EIN of the tax preparation firm. If any due date for filing falls on a Saturday, Sunday, or legal holiday, you may file your return on the next business day. Unlike social security wages, there is no limit on the amount of wages subject to Medicare tax. If you reported $50,000 or less in taxes during the lookback period, youre a monthly schedule depositor. Qualified family leave wages reported on Form 941, Part 1, Qualified family leave wages included on Form 941, Part 1, line 5c, but not included on Form 941, Part 1, line 5a(ii), column 1, because the wages reported on that line were limited by the social security wage base, Total qualified family leave wages. Ministry Opportunities; Education Opportunities; Scholarship & Internship; Resources. <>stream 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. Enter the result in the Total liability for quarter box. Form SS-4. Certain agricultural employers may request permission to file one Form CT-941 for the entire calendar year. 2009-51, 2009-45 I.R.B. 426, available at IRS.gov/irb/2017-03_IRB#RP-2017-14. June 2022): fill, sign, print and send online instantly. If you filed Form 944 in either 2021 or 2022, your lookback period is the 2021 calendar year. Please check with your financial institution regarding availability, deadlines, and costs. 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. If youre a monthly schedule depositor, complete the deposit schedule on line 16. If line 12 is more than line 13g, enter the difference on line 14. Product Number. A1 . 2013-39, 2013-52 I.R.B. The Inflation Reduction Act of 2022 (the IRA) increases the election amount to $500,000 for tax years beginning after December 31, 2022. Certain private employers with fewer than 500 employees that provide paid sick leave under the EPSLA and/or provide paid family leave under the Expanded FMLA are eligible to claim the credit for qualified sick and family leave wages for leave taken after March 31, 2020, and before April 1, 2021. This amount is also entered on Worksheet 2, Step 2, line 2b. If you don't want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Required Notice to Employees About the Earned Income Credit (EIC), Determine if Youre a Monthly or Semiweekly Schedule Depositor for the Quarter, Part 1:Answer These Questions for This Quarter, 1. For purposes of these instructions, all references to sick pay mean ordinary sick pay, not qualified sick leave wages that are reported on line 5a(i) for leave taken after March 31, 2020, and before April 1, 2021, or reported on line 5a for leave taken after March 31, 2021, and before October 1, 2021. 12/20) Page 1 of 2 Form CT-941 Instructions General Instructions . About IRS; Careers; Operations and Budget; Tax Statistics; Help; 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. Collectively bargained apprenticeship program contributions. Enter your deposits for this quarter, including any overpayment from a prior quarter that you applied to this return. The amount from Form 8974, line 12, or, if applicable, line 17, is reported on line 11a. See the instructions for, For purposes of the credit for qualified sick and family leave wages, qualified sick 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, as enacted under the FFCRA and amended by the COVID-related Tax Relief Act of 2020. If an employer uses an agent to pay sick pay, the employer reports the wages on line 5a, line 5c, and, if the withholding threshold is met, line 5d, 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 sick pay. Prior revisions of Form 941 are available at IRS.gov/Form941 (select the link for All Form 941 Revisions under Other Items You May Find Useful). Reduction Act of 2022 (the IRA) increases the election amount to $500,000 for tax years beginning after December 31, 2022. If youre a paid preparer, enter your Preparer Tax Identification Number (PTIN) in the space provided. See Employer identification number (EIN), later, for information about applying for an EIN. See section 12 of Pub. 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. For more information on paying with a timely filed return, see the instructions for line 14, later. Your financial institution may charge you a fee for payments made this way. You must use EFT to make all federal tax deposits. The amount to be credited or refunded to you needs to be presented as a negative number in Column 4. Enter the amount of social security tax from Form 941, Part 1. The rate of social security tax on taxable wages, including qualified sick leave wages and qualified family leave wages paid in 2023 for leave taken after March 31, 2021, and before October 1, 2021, is 6.2% each for the employer and employee or 12.4% for both. Use Worksheet 1 to figure the credit for leave taken after March 31, 2020, and before April 1, 2021. 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. Penalties and interest are charged on taxes paid late and returns filed late at a rate set by law. 15-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 . Section references are to the Internal Revenue Code unless otherwise noted. 2022. You may pay the amount with Form 941 or you may deposit the amount. Your employee must report cash tips to you by the 10th day of the month after the month the tips are received. 12. Type or print your EIN, name, and address in the spaces provided. See the instructions for line 11b and line 11d, later, for more information on these credits. 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. The total tax liability for the quarter must equal the amount reported on line 12. Doing so enhances the accuracy of our scanning software. The IRS has released an updated version of Form 941 for the 2nd through 4th quarters of 2020, the 1st quarter 2021, the 2nd through 4th quarters of 2021, and the 1st quarter of 2022 and later. If you go out of business or stop paying wages, you must file a final return. 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. 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. 15. For more information, go to, 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. Postal Service to mail an item to a P.O. Don't staple Form 941-V or your payment to Form 941 (or to each other). If you pay by EFT, credit card, or debit card, file your return using the Without a payment address under Where Should You File, earlier, and don't file Form 941-V, Payment Voucher. This amount of the employer share of social security tax can also be reduced by the nonrefundable portion of the credit. Pubs. For more information, see section 12 of Pub. For paid sick leave qualifying under (4), (5), or (6) above, the amount of qualified sick leave wages is determined at two-thirds the employee's regular rate of pay, but the wages may not exceed $200 for any day (or portion of a day) for which the individual is paid sick leave.