Use IRS e-file, if possible. An employer who makes timely withholding payments and owes no additional withholding for the quarter has ten days after the normal due date to file Form CT941. Monthly schedule depositors and semiweekly schedule depositors must account for nonrefundable credits claimed on lines 11a, 11b, and 11d when reporting their tax liabilities on line 16 or Schedule B (Form 941). Certification program for professional employer organizations (PEOs). However, don't include any wages otherwise excluded under section 3121(b) when reporting qualified family leave wages on lines 5a(ii), 5c, and, if applicable, 5d. 15 for information about payments made under the accuracy of deposits rule. Just follow the below instructions to complete and File your form 941 to the IRS. The nonrefundable portion of the 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, is limited to the employer share of Medicare 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 Medicare tax on Form 8974, line 16, for the qualified small business payroll tax credit for increasing research activities. Proc. See IP 2022(1). Don't resubmit requests you've already sent us. Dont include service charges on line 5b. For details and required documentation, see Rev. Allocated tips aren't reportable on Form 941 and aren't subject to withholding of federal income, social security, or Medicare taxes. If you permanently go out of business or stop paying wages to your employees, you must file a final return. 15-A. The amount from Form 8974, line 12, or, if applicable, line 17, is reported on line 11a. Add the column 2 amounts on lines 5a5d. Check the second box on line 16 and enter your tax liability for each month in the quarter. Otherwise, see the instructions for line 15, later. For more information on Additional Medicare Tax, go to IRS.gov/ADMTfaqs. Businesses can enjoy the benefits of filing tax returns and paying their federal taxes electronically. Don't enter dollar signs and decimal points. No paper. 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 . If you paid qualified sick leave wages and/or qualified family leave wages this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021, complete Step 1 and Step 2. You remain responsible if the third party fails to perform any required action. Select the mailing address listed on the webpage that is in the same state as the address to which you would mail returns filed without a payment, as shown next. for Form 941-X. 963, Federal-State Reference Guide. Give us any information that is missing from your return. See the Instructions for Schedule D (Form 941) to determine whether you should file Schedule D (Form 941) and when you should file it. Use Form 941-X to correct errors on a Form 941 that you previously filed. 15 or go to IRS.gov/EmploymentTaxes. 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 . 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). Don't file Schedule B (Form 941) with your Form 941 if youre a monthly schedule depositor. Ovg,{}bF7w-tO\V?*+{pH$T0W]4B@c{X"GgSra$#c\_dydbd&.\:r+pE}qE-`f8Mus {2x_\kl?BFW"`;b=:ZRDiZgt)C:{IR%%+i. 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. The employee received more than $135,000 in pay for the preceding year. Department of Revenue Services 2022 State of Connecticut (Rev. However, see section 11 of Pub. 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. Advance payment of COVID-19 credits ended. 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. Zl[l[ZZZ oDN_|Lr2L/3_qH6;yV*E^n &L0i6^xv'biVM&EHilBG`iu0>UsO4 If your total taxes after adjustments and nonrefundable credits (line 12) are $2,500 or more for the current quarter and the prior quarter. Deposit the tax within the time period required under your deposit schedule to avoid any possible deposit penalty. Your Form 941 is due by the last day of the month that follows the end of the quarter. 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. The amounts entered on lines 19 through 28 are amounts that you use on the worksheets at the end of these instructions to figure certain credits. Proc. To avoid a penalty, you must pay any amount due in full with a timely filed return or you must deposit any amount you owe by the due date of the return. endobj 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. The refundable portion of the credit doesnt reduce the liability reported on line 16 or Schedule B (Form 941). Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Reported on Line 23, 25. Complete lines 26, 27, and 28 only if qualified family leave wages were paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021. If you don't properly report your liabilities when required or if youre a semiweekly schedule depositor and enter your liabilities on line 16 instead of on Schedule B (Form 941), you may be assessed an averaged FTD penalty. The following amounts are reconciled. 15. 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. Under Report for this Quarter of 2023 at the top of Form 941, check the appropriate box of the quarter for which youre filing. 3631 0 obj Both directly and indirectly tipped employees must report tips to you. Your filing address may have changed from that used to file your employment tax return in prior years. Don't use a credit or debit card to make federal tax deposits. See Worksheet 2 to figure your credit. 19. For more information about qualified family leave wages, go to IRS.gov/PLC. If youre filing your tax return or paying your federal taxes electronically, a valid employer identification number (EIN) is required at the time the return is filed or the payment is made. Type or print within the boxes. 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. Current Revision Form 941 PDF Instructions for Form 941 ( Print Version PDF) Recent Developments If you go out of business or stop paying wages, you must file a final return. A fee may be charged to file electronically. 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. Postal Service on or before the due date, or sent by an IRS-designated private delivery service (PDS) on or before the due date. Qualified health plan expenses allocable to qualified family leave wages (Form 941, Part 3, Employer share of Medicare tax on qualified family leave wages. When is my Form IL-941 return due? Enter the total number of Forms W-2 reporting Illinois withholding you issued for the entire year. 5e. If you hire employees seasonallysuch as for summer or winter onlycheck the box on line 18. 966. 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. Therefore, for leave taken after March 31, 2020, and before April 1, 2021, the maximum amount of paid sick leave wages can't exceed $5,110 for an employee for leave under (1), (2), or (3), and it can't exceed $2,000 for an employee for leave under (4), (5), or (6). The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2022. If you need to correct any adjustment reported on a previously filed Form 941, complete and file Form 941-X. Notify the IRS immediately if you change your business name, business address, or responsible party. 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. Any 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, that is remaining at the end of the quarter because it exceeds the employer share of social security tax for the quarter is claimed on line 13c as a refundable credit. Instructions available at tax.illinois.gov. Add lines 2e and 2e(i), Qualified family leave wages excluded from the definition of employment under sections 3121(b)(1)(22). If line 12 is $2,500 or more on both your prior and current quarter Form 941, and youve deposited all taxes when due, the balance due on line 14 should be zero. The amount of collectively bargained defined benefit pension plan contributions allocated to qualified sick leave wages and/or qualified family leave wages in a quarter is the pension 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. 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. See sections 11 and 12 of Pub. 15 applies. Youre a monthly schedule depositor for the calendar year if the amount of your Form 941 taxes reported for the lookback period is $50,000 or less. 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. 2017-14, 2017-3 I.R.B. 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 . Form 941 and these instructions use the terms nonrefundable and refundable when discussing credits. When two businesses merge, the continuing firm must file a return for the quarter in which the change took place and the other firm should file a final return. Generally, an EFT is made using the Electronic Federal Tax Payment System (EFTPS). 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. Check the third box on line 16. To tell the IRS that Form 941 for a particular quarter is your final return, check the box on line 17 and enter the final date you paid wages. If any nonrefundable portion of the credit remains, Maple Co. applies it to the liability for the January 20 pay date, then the February 3 pay date, and so forth until the entire $10,000 is used. For leave taken after March 31, 2021, and before October 1, 2021, the leave can be granted for any other reason provided by the EPSLA, as amended for purposes of the ARP. See section 11 of Pub. After you contact the IRS, the IRS will send you a written notice that your filing requirement has been changed to Form 944. You can pay the balance due shown on Form 941 by credit or debit card. However, qualified health plan expenses don't include amounts that the employee paid for with after-tax contributions. If you don't have an EIN, you may apply for one online by going to IRS.gov/EIN. 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. 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). Enter the amount before payroll deductions. Enter all tips your employees reported to you during the quarter until the total of the tips and taxable wages, including wages reported on line 5a, qualified sick leave wages reported on line 5a(i), and qualified family leave wages reported on line 5a(ii), for an employee reach $160,200 for the year. Enter the refundable portion of the credit for qualified sick and family leave wages from Worksheet 1, Step 2, line 2k. Enter the qualified health plan expenses allocable to qualified family leave wages paid this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021. If the due date falls on a Saturday, Sunday, or legal holiday, . Read the separate instructions before you complete Form 941. Current quarter's adjustment for sick pay. 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. For more information on electronic payment options, go to IRS.gov/Payments. If you're the common-law employer of the individuals that are paid qualified sick or family leave wages, you're entitled to the credit for the sick and family leave wages regardless of whether you use a third-party payer (such as a PEO, CPEO, or section 3504 agent) to report and pay your federal employment taxes. 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. Failure to account for the nonrefundable credits on line 16 or Schedule B (Form 941) may cause line 16 or Schedule B (Form 941) to report more than the total tax liability reported on line 12. On any device & OS. Don't attach an explanation when you file your return. See the instructions for line 5c for reporting Medicare tax on qualified family leave wages, including the portion above the social security wage base. For more information about a CPEOs requirement to file electronically, see Rev. Current quarter's adjustment for fractions of cents. Don't send Form 941 or any payments to the SSA. 1 Number of employees who received wages, tips, or other compensation for the pay period including: June 12 (Quarter 2), Sept. 12 (Quarter 3), or . endobj See the March 2022 revision of the Instructions for Form 941 for information about when a third party is considered the person to whom COBRA premium assistance payments are payable. Make entries on Form 941 as follows to enable accurate scanning and processing. An employers agent bears no insurance risk and is reimbursed on a cost-plus-fee basis for payment of sick pay and similar amounts. The amounts entered on line 16 are a summary of your monthly tax liability, not a summary of deposits you made. 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. If you enter an amount on line 11a, you must attach Form 8974. This amount of the employer share of Medicare tax can also be reduced by the nonrefundable portion of the credit. Also include here any excise taxes you were required to withhold on golden parachute payments (section 4999). This amount is also entered on Worksheet 2, Step 2, line 2h. see Instructions for Form 940 and Schedule A for Form 940. Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021. 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. 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. You also authorize your designee to do all of the following. However, CPEOs are permitted to file a paper Form 941 and its accompanying schedules in lieu of electronic submissions for the second, third, and fourth quarters of calendar year 2020. These maximum amounts also reset and apply to leave taken after March 31, 2021, and before October 1, 2021. The COVID-19 related credit for qualified sick and family leave wages is limited to leave taken after March 31, 2020, and before October 1, 2021. 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. For leave taken after March 31, 2021, and before October 1, 2021, the limit resets and the total qualified family leave wages can't exceed $200 per day or $12,000 in the aggregate per employee. 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. This amount is also entered on Worksheet 2, Step 2, line 2g. Below is a summary of the new fields on the form and how Accounting CS populates those fields. Social security and Medicare taxes apply to election workers who are paid $2,200 or more in cash or an equivalent form of compensation in 2023. Toggle Navigation. The IRS matches amounts reported on your four quarterly Forms 941 with Form W-2 amounts totaled on your yearly Form W-3, Transmittal of Wage and Tax Statements. 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. You will reconcile this difference on Form W-3. The uncollected employee share of social security and Medicare taxes on group-term life insurance premiums paid for former employees. 15 for more information. Select a category (column heading) in the drop down. If you reported more than $50,000 of taxes for the lookback period, youre a semiweekly schedule depositor. By checking Yes, you authorize the IRS to talk to the person you named (your designee) about any questions we may have while we process your return. The pension contribution rate is the contribution rate that the employer is obligated to pay under the terms of a collective bargaining agreement to a defined benefit plan, as the rate is applied to contribution base units, as defined by section 4001(a)(11) of the Employee Retirement Income Security Act of 1974 (ERISA). For additional filing requirements, including information about attaching a statement to your final return, see If Your Business Has Closed, earlier. 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. If a third-party payer of sick pay is also paying qualified sick leave wages on behalf of an employer, the third party would be making the payments as an agent of the employer. Subtract line 11g from line 10 and enter the result on line 12. This amount is also entered on Worksheet 1, Step 2, line 2b. 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. 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. Mail your return to the address listed for your location in the table that follows. The rate of . See section 6 of Pub. The employee share of amounts shown in column 2 of lines 5a5d may differ slightly from amounts actually withheld from employees' pay due to the rounding of social security and Medicare taxes based on statutory rates. Unlike the federal government, Illinois does not require an annual reconciliation return. 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. Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make filing and paying easier. What's New Social security and Medicare tax for 2023. March 2022) Employer's QUARTERLY Federal Tax Return Department of the Treasury Internal Revenue Service . No report is required for months when tips are less than $20. Corporation (including a limited liability company (LLC) treated as a corporation)The president, vice president, or other principal officer duly authorized to sign. Complete Form 941-V and enclose it with Form 941. Beginning with the first quarter of 2023, the qualified small business payroll tax credit for increasing research activities is first used to reduce the employer share of social security tax (up to $250,000) for the quarter and any remaining credit is then used to reduce the employer share of Medicare tax for the quarter until it reaches zero. 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. You remain responsible if the third party fails to perform any required action. 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 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. Qualified sick leave wages reported on Form 941, Part 1, Qualified sick leave wages included on Form 941, Part 1, line 5c, but not included on Form 941, Part 1, line 5a(i), column 1, because the wages reported on that line were limited by the social security wage base, Total qualified sick leave wages. 15-B, Employer's Tax Guide to Fringe Benefits. 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. At this time, the IRS expects the March 2023 revision of Form 941 and these instructions to also be used for the second, third, and fourth quarters of 2023. Notice 797. 15-A for more information about sick pay reporting. 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. Your Form IL-941 is due quarterly. Employers of farm employees don't file Form 941 for wages paid for agricultural labor. Please check with your financial institution regarding availability, deadlines, and costs. If youre required to file Forms 941 but believe your employment taxes for calendar year 2023 will be $1,000 or less, you may request to file Form 944 instead of Forms 941 by calling the IRS at 800-829-4933 between January 1, 2023, and April 3, 2023, or sending a written request postmarked between January 1, 2023, and March 15, 2023. Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021, 23. 1 Number of employees who received wages, tips, or other . Social security and Medicare tax for 2023. See the instructions for line 8 for an adjustment that you may need to make on Form 941 for sick pay. Sole proprietorshipThe individual who owns the business. If youre a monthly schedule depositor, complete the deposit schedule on line 16. 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. 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.
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