Generally, employers use Form 941, Employer’s Quarterly Federal Tax Return, to report federal income taxes, Social Security tax, or Medicare tax (FICA) withheld from employees’ paychecks; and to pay the employer’s portion of Social Security or Medicare tax (FICA). The form contains five parts. See Payroll Guide ¶4225.
Schedule R of Form 941.
Agents approved by the IRS under Code Sec. 3504 and certified professional employer organizations (CPEOs) must complete Schedule R each time they file an aggregate Form 941. The form is due with the aggregate Form 941 each quarter. To request approval to act as an agent for an employer under Code Sec. 3504, the agent must file Form 2678 (Employer/Payer Appointment of Agent) with the IRS. Form 2678 must be previously filed and approved by the IRS before filing Schedule R. To become a CPEO, the organization must apply through the IRS Online Registration System.
March 2023 Drafts.
There are no substantive changes to Form 941 or the Form 941 Schedule R. The IRS had noted in a prior payroll industry call that a revision to Form 941 for the increase in the Qualified Small Business Payroll Tax Credit for Increasing Research Activities (see Payroll Update, 12/05/2022) was unnecessary because the tax credit is figured on Form 8974 and entered as a single amount on Line 11a on Form 941.
Draft Form 941-SS.
The IRS has also released a March 2023 draft version of Form 941-SS (Employer’s Quarterly Federal Tax Return for American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands). This form also contains no substantive changes.
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