The IRS has released the finalized version of the updated Form 941. The revised form is very similar to the draft that was released earlier this year, which addresses the variety of tax credits available to employers as a result of COVID-19 related legislation: FFCRA and CARES.
There are 23 new data fields on Form 941, extending the form to three pages, and the IRS has released a 19-page instruction document to help with completing the form. Included with the instructions is Worksheet 1, Credit for Qualified Sick and Family Leave Wages and the Employee Retention Credit, to assist with calculation refundable and non-refundable tax credits.
The worksheet has three sections, identified as Steps:
➢ Employers who have paid BOTH qualified wages for sick leave and family leave, as well
as wages that are eligible for the employee retention credit, will complete all three Steps.
➢ Employers who have paid qualified wages for sick and family leave but NOT the
employee retention credits will complete Steps 1 and 2.
➢ Employers who have paid wages that are eligible for the employee retention credit but
NOT wages for sick and family leave will complete Steps 1 and 3.
The new Form 941 is to be used for all filings beginning with the second quarter of 2020, (covering the months of April, May, and June) which is due July 31st. While there are a few weeks before the filing deadline, business owners should allow ample time to complete the return, given the additional information required.
Should you have any questions regarding this topic, or would like assistance in completing your quarterly Form 941 filing, please reach out to us at (469) 467-4660, or firstname.lastname@example.org.