Advance payment of credits.Eligible employers file Form 7200 (Advance Payment of Employer Credits Due to COVID-19) to request an advance payment of the tax credits for qualified sick and qualified family leave wages and the employee retention credit.
Form 941, 941-SS, or 941-PR to claim the credit. The reporting of qualified wages for ERC was postponed for the first quarter and first quarter qualified wages for the ERC is reported on the new version of Form 941, 941-SS, or 941-PR for both both the first and second quarters. The ERC permits a credit of up to $5,000 per employee (a maximum of $10,000 in wages). The ERC is equal to 50% of qualified wages paid to employees after March 12, 2020, and before Jan. Employee retention credit. Additionally, the form also includes the Employee Retention Credit (ERC) provided under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.Qualified leave wages aren’t subject to the employer share of Social Security tax. Qualified leave wages. Refundable tax credits are available for paid sick leave and paid family leave (“qualified leave wages”) required under the Families First Coronavirus Response Act (the “FFCRA”).The second quarter Form 941 and its schedules, when applicable, are due July 31 (August 10, if all tax deposits were submitted timely for the second quarter).ĭue to refundable employment tax credits, advance payment of employment tax credits, and permissible deferral of certain employment taxes provided in recent coronavirus (COVID-19) tax legislation, Form 941 and its related schedules, Schedule B and R required revisions to accommodate the reporting of these credits. The IRS released final instructions for Form 941 (Employer’s Quarterly Federal Tax Return), Schedule B (Report of Tax Liability for Semiweekly Schedule Depositors), and Schedule R (Allocation Schedule for Aggregate Form 941 Filers). The IRS has released a flurry of instructions related to the filing of Form 941 ahead of the second quarter filing.
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