The federal income tax withholding tables are included in Pub. However, with respect to certain employees covered by a CPEO contract, you may also be treated as an employer of the employees and, consequently, may also be liable for federal employment taxes imposed on wages and other compensation paid by the CPEO to such employees. Don't request abatement of assessed penalties or interest on Form 941 or Form 941-X. Multiply line 2g(iv) by 6.2% (0.062), Employer share of Medicare tax on qualified family leave wages. . If you need to correct any adjustment reported on a previously filed Form 941, complete and file Form 941-X. PEOs handle various payroll administration and tax reporting responsibilities for their business clients and are typically paid a fee based on payroll costs. 12/22) 941HHE 1222W 01 9999 Form CT941 HHE is used to reconcile annual Connecticut income tax withholding from household employee wages only. If you received a Section 3121(q) Notice and Demand for tax due on unreported tips (Letter 3263 or Letter 4520) during the quarter, you report the amount for the employer share of social security tax and Medicare tax on Form 941, line 5f. No software installation. To get more information about EFTPS or to enroll in EFTPS, go to EFTPS.gov or call 800-555-4477. 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. 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. 11a. All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Pub. 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). A highly compensated employee is an employee who meets either of the following tests. 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 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. Qualified health plan expenses allocable to qualified family leave wages (Form 941, Part 3, Employer share of Medicare tax on qualified family leave wages. box address. Don't use a credit or debit card to make federal tax deposits. 1244), or submit a written statement or electronic tip record. A business day is any day other than a Saturday, Sunday, or legal holiday. If you don't follow these guidelines, we will generally consider Form 941 filed when it is actually received. No adjustment is reported on line 8 for sick pay that is paid through a third party as an employers agent. Legal holidays in the District of Columbia are provided in section 11 of Pub. Enter amounts on line 2 that would also be included in box 1 of your employees' Forms W-2. Include your complete address. For more information on reducing deposits, see Notice 2020-22, 2020-17 I.R.B. If youre a third-party payer of sick pay, enter the federal income tax you withheld (or were required to withhold) on third-party sick pay here. See the Instructions for Schedule D (Form 941) to determine whether you should file Schedule D (Form 941) and when you should file it. Box 2 - Choosing Quarter In box 2, choose a quarter for which Form 941 is being filed. A son or daughter includes a biological child, adopted child, stepchild, foster child, legal ward, or a child for whom the employee assumes parental status and carries out the obligations of a parent. If you want to expand your designee's authorization, see Pub. Your Form 941 is due by the last day of the month that follows the end of the quarter. Now Healthy Churches; Next . Don't send Form 941 or any payments to the SSA. The same wages cant be treated as both qualified sick leave wages and qualified family leave wages. The credit for qualified sick and family leave wages consists of the qualified sick leave wages, the qualified family leave wages, the qualified health plan expenses allocable to those wages, and the employer share of Medicare tax allocable to those wages. Employers eligible to claim the 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, can reduce their deposits by the amount of their anticipated credit. If no wages, tips, and other compensation on line 2 are subject to social security or Medicare tax, check the box on line 4. "=k?#Ut(~Z"NKOJ_U7o/T09FNO~6$fqn4I07vF0`[Bo See section 13 of Pub. The payroll tax credit election must be made on or before the due date of the originally filed income tax return (including extensions). A substitute Form W-2 with the same EIC information on the back of the employee's copy that is on Copy B of the IRS Form W-2. Line 2 - Enter total wages, tips, and other compensation (like . File Form W-3 and Copy A of Forms W-2 with the SSA on time and accurately. Any 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, that is remaining at the end of the quarter because it exceeds the employer share of Medicare tax for the quarter is claimed on line 13e as a refundable credit. The employer is required to do the reporting and payment of employment taxes with respect to the qualified sick leave wages and claim the credit for the qualified sick leave wages, unless the employer has an agency agreement with the third-party payer that requires the third-party payer to do the collecting, reporting, and/or paying or depositing employment taxes on the qualified sick leave wages. You must receive written notice from the IRS to file Form 944 instead of Forms 941 before you may file this form. Certification as a CPEO may affect the employment tax liabilities of both the CPEO and its customers. For purposes of the credit for qualified sick and family leave wages, qualified sick leave and 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 Emergency Paid Sick Leave Act (EPSLA) or the Emergency Family and Medical Leave Expansion Act (Expanded FMLA), as enacted under the FFCRA and amended for purposes of the ARP. 15, or go to, For more information on making federal tax deposits, see section 11 of Pub. For more information or to apply to become a CPEO, go to IRS.gov/CPEO. 15. Changing from one form of business to anothersuch as from a sole proprietorship to a partnership or corporationis considered a transfer. You may be eligible to apply for an installment agreement online if you can't pay the full amount of tax you owe when you file your return. Rul. 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. Step 6: Figure your balance Line 8 Follow the instructions on the form. Ministry Opportunities; Education Opportunities; Scholarship & Internship; Resources. See sections 11 and 12 of Pub. If you want more in-depth information about payroll tax topics relating to Form 941, see Pub. The ARP resets this limit at 80 hours of paid sick leave for leave taken after March 31, 2021, and before October 1, 2021. Advance payment of COVID-19 credits ended. For e-file, go to IRS.gov/EmploymentEfile for additional information. Form CT-941 Instructions (Rev. If youre filing your tax return electronically, a valid EIN is required at the time the return is filed. 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. Form 941 and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form941. If a valid EIN isn't provided, the return won't be accepted. 06/29/2022. may request permission from DRS to file Form CT941 for only the calendar quarters in which they pay Connecticut wages. Current quarter's adjustment for sick pay. 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. Reminders Use the March 2022 revision of Form 941 only to report taxes for the quarter ending March 31, 2022. Rose Co. is a semiweekly schedule depositor. If you want to allow an employee, a paid tax preparer, or another person to discuss your Form 941 with the IRS, check the Yes box in Part 4. Read the separate instructions before you complete Form 941. Add lines 11a, 11b, and 11d. the "look-back" period is July 1, 2021, through June 30, 2022. 15-A for more information about sick pay reporting. 15. See the instructions for, Enter the qualified taxable (subject to social security tax) sick leave wages you paid this quarter of 2023 to your employees for leave taken after March 31, 2020, and before April 1, 2021. For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, 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. Report the entire amount of these tips on line 5b (Taxable social security tips), line 5c (Taxable Medicare wages and tips), and, if the withholding threshold is met, line 5d (Taxable wages and tips subject to Additional Medicare Tax withholding). If youre claiming these credits, you must enter the applicable amounts. Prior revisions of Form 941 are available at IRS.gov/Form941 (select the link for All Form 941 Revisions under Other Items You May Find Useful). Total social security and Medicare taxes. This form is also used to calculate the employer's Social Security and Medicare tax contributions and additional taxes withheld. Any remaining credit, after reducing the employer share of social security tax and the employer share of Medicare tax, is then carried forward to the next quarter. See $100,000 Next-Day Deposit Rule in section 11 of Pub. To become and remain certified under the certification program, certified professional employer organizations (CPEOs) must meet various requirements described in sections 3511 and 7705 and related published guidance. The uncollected employee share of social security and Medicare taxes on group-term life insurance premiums paid for former employees. See the instructions for line 16, later, for information on adjusting tax liabilities reported on line 16 or Schedule B (Form 941) for nonrefundable credits. Use Form 941-X to correct errors on a Form 941 that you previously filed. On Schedule B (Form 941), Maple Co. will use the $10,000 to reduce the liability for the January 6 pay date, but not below zero. Generally, we won't ask about unfiled returns if at least one taxable return is filed each year. Social security and Medicare taxes apply to the wages of household workers you pay $2,600 or more in cash wages in 2023. 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. You don't have to pay if line 14 is under $1. Enter the amount of the credit from Form 8974, line 12 or, if applicable, line 17. 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. Taxable Social Security and Medicare Wages and Tips, 5f. This credit is claimed on Form 5884-D (not on Form 941). This adjustment may be a positive or a negative adjustment.