Read the separate instructions before you complete Form 941. Otherwise, see the instructions for line 15, later. 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. Enter dollars to the left of the preprinted decimal point and cents to the right of it. 15-A. Complete line 11b only if 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. 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. Mail your return to the address listed for your location in the table that follows. endobj Enter the nonrefundable portion of the credit for qualified sick and family leave wages from Worksheet 1, Step 2, line 2j. For additional information, see Rev. boxes. On any device & OS. If your total taxes after adjustments and nonrefundable credits (line 12) are less than $2,500 for the current quarter or the prior quarter, and you didn't incur a $100,000 next-day deposit obligation during the current quarter. "-HvPNbL$a4'2**\hD;Aaa ,F|e548Z$5a\"M Current quarter's adjustment for sick pay. For more information about the payroll tax credit, see IRS.gov/ResearchPayrollTC. Qualified sick leave wages and qualified family leave wages paid in 2023 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%. For purposes of qualified sick and family leave wages, collectively bargained defined benefit pension plan contributions are contributions for a calendar quarter that are: Paid or incurred by an employer on behalf of its employees to a defined benefit plan, as defined in section 414(j), which meets the requirements of section 401(a); Made based on a pension contribution rate; and. Prior Year Products - IRS tax forms If you were required to make federal tax deposits, pay the amount shown on line 14 by EFT. 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. 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. Current quarter's adjustments to social security and Medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance. You can't use your PTIN in place of the EIN of the tax preparation firm. If, by the 10th of the month after the month you received an employee's report on tips, you don't have enough employee funds available to withhold the employee share of social security and Medicare taxes, you no longer have to collect it. See Notice 2020-22 and Notice 2021-24 for information on reducing deposits for certain credits. Partnership (including an LLC treated as a partnership) or unincorporated organizationA responsible and duly authorized partner, member, or officer having knowledge of its affairs. Add the amounts for each month. This adjustment may be a positive or a negative adjustment. If you need to correct any adjustment reported on a previously filed Form 941, complete and file Form 941-X. Youre encouraged to file Form 941 electronically. After you contact the IRS, the IRS will send you a written notice that your filing requirement has been changed to Forms 941. 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. See section 11 of Pub. Intro File Taxes Properly IRS Form 941 Line-by-Line Instructions 2023: How to File Quarterly Federal Tax Return TAXES S2E70 The Awesome S'witty Kiwi Show 32K subscribers Subscribe 5.5K. 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. 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. 9. Also see Adjusting tax liability for nonrefundable credits claimed on lines 11a, 11b, and 11d , later. For more information or to apply to become a CPEO, go to IRS.gov/CPEO. 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). This amount of the employer share of social security tax can also be reduced by the nonrefundable portion of the credit. Form 8974 is used to determine the amount of the credit that can be used in the current quarter. If changes in law require additional changes to Form 941, the form and/or these instructions may be revised. 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). Qualified health plan expenses allocable to qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021 (Form 941, Part 3. 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. PDF Illinois Department of Revenue Form IL-941 *71012221W* 2022 Leave the Trade name line blank if it is the same as your Name.. Allocated tips aren't reportable on Form 941 and aren't subject to withholding of federal income, social security, or Medicare taxes. 15. Your financial institution may charge you a fee for payments made this way. If you fail to complete and submit Schedule B (Form 941), the IRS may assess deposit penalties based on available information. PEOs handle various payroll administration and tax reporting responsibilities for their business clients and are typically paid a fee based on payroll costs. 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. 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. 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. Employers use Form 941 to report federal income tax withheld, social security tax, and Medicare tax (FICA taxes) from each employee's salary. You may also apply for an EIN by faxing or mailing Form SS-4 to the IRS. 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. If youre a semiweekly schedule depositor, attach Schedule B (Form 941). Portable Document Format (PDF) forms on IRS.gov have fillable fields with acceptable font specifications. Report only the wages you paid. hZmSFOo,e1s\9=|I (3t$i#Hc8D For more information and rules about federal tax deposits, see Depositing Your Taxes, earlier, and section 11 of Pub. 426, available at IRS.gov/irb/2017-03_IRB#RP-2017-14. 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. If the payroll tax credit elected is more than Rose Co.'s share of social security tax on the first payroll payment of the quarter, the excess payroll tax credit would be carried forward to succeeding payroll payments in the third quarter until it is used against up to $250,000 of Rose Co.'s share of social security tax for the quarter. Enter the amount of the credit from Form 8974, line 12 or, if applicable, line 17. Prior Year Products - IRS tax forms IRS Releases 2023 Form 941, Schedules, and Instructions Forms and Instructions (PDF) - IRS tax forms Additional Medicare Tax is only imposed on the employee. instructions and the latest information. This amount is also entered on Worksheet 2, Step 2, line 2c. For more information, see Pub. 15 for more information. If youre required to make deposits and instead pay the taxes with Form 941, you may be subject to a penalty. You cant claim the credit for leave taken after March 31, 2021, and before October 1, 2021, if, during the applicable quarter in which the qualified sick or family leave wages were paid, you made qualified sick or family leave wages available in a manner that discriminates in favor of highly compensated employees, full-time employees, or employees on the basis of employment tenure. To avoid a penalty, you must pay any amount you owe in full with a timely filed return or you must deposit any amount you owe before the due date of the return. However, qualified health plan expenses don't include amounts that the employee paid for with after-tax contributions. Under an installment agreement, you can pay what you owe in monthly installments. However, qualified health plan expenses dont include amounts that the employee paid for with after-tax contributions. The $100,000 tax liability threshold requiring a next-day deposit is determined before you consider any reduction of your liability for nonrefundable credits. The trust fund recovery penalty won't apply to any amount of trust fund taxes an employer holds back in anticipation of any credits they are entitled to. A unique nine-digit EIN is assigned to all corporations, partnerships, and some sole proprietors. Add the column 2 amounts on lines 5a5d. Form 941 may be signed by a duly authorized agent of the taxpayer if a valid power of attorney has been filed. 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. Complete all information and sign Form 941. Enter the result on line 5e. 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. 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. PDF Form 941 for 2021: Employer's QUARTERLY Federal Tax Return This credit is claimed on Form 5884-D (not on Form 941). 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. PEOs handle various payroll administration and tax reporting responsibilities for their business clients and are typically paid a fee based on payroll costs. 2012-18, 2012-26 I.R.B. If youre a monthly schedule depositor, complete the deposit schedule on line 16. Add lines 2a and 2a(i), Qualified sick leave wages excluded from the definition of employment under sections 3121(b)(1)(22). 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 can apply for an installment agreement online if: You can't pay the full amount shown on line 14, The total amount you owe is $25,000 or less, and. For details, see the General Instructions for Forms W-2 and W-3. You must receive written notice from the IRS to file Form 944 instead of Forms 941 before you may file this form. You must deposit all depository taxes electronically by EFT. 80, Federal Tax Guide for Employers in the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands; and Pub. Current Revision Form 941 PDF Instructions for Form 941 ( Print Version PDF) Recent Developments 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 $100,000 Next-Day Deposit Rule in section 11 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. 15) on this line. Select a category (column heading) in the drop down. 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 $12,000 in the aggregate per employee. If both an employer and a section 3504 authorized agent (or CPEO or other third-party payer) paid wages to an employee during a quarter, both the employer and the section 3504 authorized agent (or CPEO or other third-party payer, if applicable) should file Form 941 reporting the wages each entity paid to the employee during the applicable quarter and issue Forms W-2 reporting the wages each entity paid to the employee during the year. Ovg,{}bF7w-tO\V?*+{pH$T0W]4B@c{X"GgSra$#c\_dydbd&.\:r+pE}qE-`f8Mus {2x_\kl?BFW"`;b=:ZRDiZgt)C:{IR%%+i. Form 941 Instructions: How To Fill Out Each Part (+ State Mailing For leave taken after March 31, 2020, and before April 1, 2021, the first 10 days for which an employee takes leave may be unpaid. You don't have to pay if line 14 is under $1. 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. Unlike social security wages, there is no limit on the amount of wages subject to Medicare tax. 2013-39, 2013-52 I.R.B. Certification program for professional employer organizations (PEOs). Enter the nonrefundable portion of the credit for qualified sick and family leave wages from Worksheet 2, Step 2, line 2p. 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. Do not include payments you are submitting with this Form IL-941-X. Report these types of withholding on Form 945, Annual Return of Withheld Federal Income Tax. 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. There is no wage base limit for Medicare tax. See the table titled When To File Form 941, later. PDF 2023 IL-941 Instructions January 31, 2022. Generally, an EFT is made using the Electronic Federal Tax Payment System (EFTPS). This form is also used to calculate the employer's Social Security and Medicare tax contributions and additional taxes withheld. For more information about a For more information on paying with a timely filed return, see the instructions for line 14, later. Enter negative amounts using a minus sign (if possible). See the instructions for line 11b and line 11d, later, for more information on these credits. 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. 1. See IP 2022(1). endobj You can avoid paying penalties and interest if you do all of the following. 06/29/2022. CPEOs file Form 8973, Certified Professional Employer Organization/Customer Reporting Agreement, to notify the IRS that they started or ended a service contract with a customer. 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. Proc. Your deposit schedule depends on the total tax liability you reported on Form 941 during the previous 4-quarter lookback period (July 1 of the second preceding calendar year through June 30 of the preceding calendar year). 3633 0 obj The amount from Form 8974, line 12, or, if applicable, line 17, is reported on line 11a. See Worksheet 2 to figure your credit. See the instructions for line 11d, earlier, for more information about qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021. Inst 941 (Schedule B) Instructions for Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors. Don't include any income tax withheld by a third-party payer of sick pay even if you reported it on Forms W-2. 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 Medicare 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 Medicare tax from the notice, Enter the amount from Form 8974, line 16, for this quarter. For more information on reducing deposits, see Notice 2020-22, 2020-17 I.R.B. <>stream endobj Commas are optional. 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. 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. The IRS has released: The 2023 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 Form 941 for 2023 contains no major changes. Don't reduce your monthly tax liability reported on line 16 or your daily tax liability reported on Schedule B (Form 941) below zero. Qualified small business payroll tax credit for increasing research activities (line 11a). Instructions for Form 941-X (PR), Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund (Puerto Rico Version) 0422. The refundable portion of the credit is allowed after the employer share of Medicare tax is reduced to zero by nonrefundable credits that are applied against the employer share of Medicare tax.
form 941 instructions 2022