Businesses with employees are familiar with the quarterly filing requirements of Form 941, the payroll return that reports quarterly wages paid and the associated taxes withheld from employees’ paychecks. Employers are required to make timely tax deposits to the IRS based on the information reported on Form 941.
The IRS recently released a draft of a revised Form 941. The updated form addresses the variety of tax credits available to employers as a result of COVID-19 related legislation: FFCRA and CARES. There are several new fields, taking the form from two pages to three, allowing reporting for qualified family and sick leave wages, the employee retention credit, and the deferred employer share of social security tax, among other items.
It is anticipated that the new Form 941 will be used beginning with the second quarter filing, which is due July 31, 2020, and covers the payroll months of April, May and June. Please keep in mind that this is still a draft and is subject to change until a final version is released by the IRS.
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