Section 303(d) of 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 not related to COVID-19. As part of the filing process, TaxMe automatically creates this worksheet. It is not filed, but kept in your records. Worksheet 1 helps users determine the refundable/nonrefundable portion of the COVID-19 Credits. WORKSHEET 1: CREDIT FOR QUALIFIED SICK AND FAMILY LEAVE WAGES AND THE EMPLOYEE RETENTION CREDIT Additionally, employers must ratably withhold and send deferred portions of the employee portion of Social Security tax from Jan. The instructions also included a reminder that employers must pay at least half of deferred amounts of the employer portion of Social Security tax by Dec. The line previously was used to report the deferred amount of the employee portion of Social Security tax. The draft 2021 Form 941 designates the line as reserved for future use. The form and instructions for Line 13e were updated to remove references to Line 13b. The draft 2021 Form 941 designates the line as reserved for future use, as it no longer is to be used to report amounts of deferred employer and employee portions of Social Security tax. 31, 2020, was 50% of those wages, up to a maximum of $10,000 per employee for all quarters. The amount of the credit for wages paid from March 13, 2020, to Dec. 1, 2021 to June 30, 2021, up to a maximum of $10,000 per employee per quarter. Instructions for Line 11c, which is used to report the nonrefundable portion of the employee retention credit, were updated to reflect that the calculation of the credit was redefined under the 2021 Consolidated Appropriations Act to be 70% of qualified wages paid from Jan. While these changes can be complicated, TaxMe simplified the process by automating most of Form 941, including Worksheet 1. IRS RELEASES PROPOSED 2021 1Q CHANGES TO PAYROLL TAX RETURN FORM 941Īppliable for the first quarter 2021, the IRS released a draft version of Form 941, plus instructions, to reflect changes to Form 941 regarding the expiration of Social Security tax deferral provisions.
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