Lentax.co

IRS Form 941 Employer’s Quarterly Federal Tax Return: What Are The Facts? | Lentax.co

Written by Jamie Williams | Jan 1, 2021 5:00:00 AM

What Is The Purpose Of This Form?

This form is to pay the employer and employee shares of Social Security and Medicare taxes.

What Are Latest Developments That Are Relevant To Me?

Early termination of the employee retention credit for most employers. The Infrastructure Investment and Jobs Act (Infrastructure Act) amends the Internal Revenue Code to limit the availability of the employee retention credit to employers that are recovery startup businesses. Learn more.

The COVID-19 related credit for qualified sick and family leave wages has been extended and amended. The COVID-19 related credit for qualified sick and family leave wages has been extended. The ARP amends the Internal Revenue Code to provide credits for qualified sick and family leave wages similar to the credits previously enacted under the Families First Coronavirus Response Act (FFCRA) and amended and extended by the COVID-related Tax Relief Act. Learn more.

The COVID-19 related employee retention credit has been extended and amended. The ARP adds a new section to the Internal Revenue Code that gives employees a credit for staying with their company during the coronavirus pandemic. This is similar to the credit that was previously enacted under the CARES Act and amended and extended by the Taxpayer Certainty and Disaster Tax Relief Act of 2020. Learn more.

New payroll tax credit for certain tax-exempt organizations affected by qualified disasters. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 allows for a new payroll tax credit for certain tax-exempt organizations affected by certain qualified disasters. This new credit will be claimed on new Form 5884-D (not on Form 941). Learn more.

Deferral of the employer share of social security tax expired. The CARES Act allowed employers to delay the payment of the employer's share of social security tax. The payment of the deferred employer's share of social security tax was only available for deposits that were due between March 27, 2020 and January 1, 2021. The payments and deposits that are required after January 1, 2021 must be paid for wages that are paid between March 27, 2020 and January 1, 2021. Learn more.

Deferral of the employee share of social security tax expired. The Presidential Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID‐19 Disaster, issued on August 8, 2020, directed the Secretary of the Treasury to not require people to pay social security tax on wages paid during the period from September 1, 2020, through December 31, 2020. Learn more.

Qualified small business payroll tax credit for increasing research activities. Starting in 2016, businesses that increase their research activities may be able to claim a payroll tax credit of up to $250,000. The election to claim the credit must be made on or before the due date of the income tax return, including any extensions. Learn more.

Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. If you are a tax-exempt organization that hires an unemployed veteran, you may be able to get a tax credit. The credit can be used to lower your payroll taxes. Fill out Form 5884-C. Learn more.

What Does The Form Look Like?

 

Reference:
IRS Form 941 Employer’s Quarterly Federal Tax Return (2021)