941 Worksheet 1 Draft

Form 941 worksheet 1 is used to calculate refundable and nonrefundable portions of qualified sick family leave employee retention credits this quarter.

941 worksheet 1 draft. Substantial changes have been proposed to irs form 941 which was released in draft form on april 29 2020 with draft instructions released on may 1 2020. 1 number of employees who received wages tips or other compensation for the pay period including. The 941 form mentions worksheet 1 and line items that will come from worksheet 1 but it s not included when filling out the 941. Form 941 will be used to report employment taxes beginning with the third quarter of 2020.

12 quarter 4 1. Beginning with the second quarter 2020 form 941 the form has been updated to include worksheet 1 on page 5. Employers will now report on line 13b the total. An employer would use the new worksheet 1 within the instructions for the revised form 941 to calculate the amount of the combined credit for qualified sick leave wages and qualified family leave wages for which it is eligible with respect to the reported quarter.

Form 941 has been revised to allow employers that defer the withholding and payment of the employee share of social security tax on wages paid on or after september 1 2020 to include the deferral on line 13b. The changes are necessary to account for and reconcile ffrca and cares act tax credits as well as advance payments of such credits using form 7200. Inst 941 schedule b instructions for schedule b form 941 report of tax liability for semiweekly schedule depositors 0920 09 30 2020 inst 941 ss. Read the separate instructions before you complete form 941.

The irs has issued a draft of the form 941 employer s quarterly federal tax return that will go into effect starting with the 2020 second quarter. For worksheet 1 there are three steps to determine the nonrefundable and refundable credits to apply to the form 941. This worksheet is broken up into three steps. The draft includes fields for reporting the covid 19 federal employment tax provisions including the social security tax deferral and the employee retention credit under the coronavirus aid relief and economic security act the cares act and the paid leave credits under the families first coronavirus response act ffcra.

12 quarter 1 june 12 quarter 2 sept. Both the sick and family leave credit and the employee retention credit have a nonrefundable and refundable portion. Instructions for form 941 ss employer s quarterly federal tax return american samoa guam the commonwealth of the northern mariana islands and the u s. Line 11b nonrefundable portion of credit for qualified sick and family leave wages from worksheet 1.

Step 1 determine the employer share of social security tax step 2 figure the refundable and nonrefundable portions of sick and family leave credit. Credit for qualified sick and family leave wages and the employee retention credit. 12 quarter 3 or dec. Answer these questions for this quarter.

Type or print within the boxes. I am trying to complete my 941 for quarter 2 2020 and worksheet 1 is no where to be found. If you only paid out the ffcra wages part 1 and part 2 need to be filled out. The employer would further use the worksheet to determine the portion of the combined credit that is nonrefundable and this.