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Many of the changes to the IRS Form 941 for the second quarter are in response to the American Rescue Plan, passed earlier this year. One of the most noticeable changes to the form is the lines that capture information related to the COBRA Premium Assistance Credit. There are also some changes due to the extension and amendment of the qualified sick and family leave credit and employee retention credit.
Aatrix Has You Covered
- Aatrix has updated the 941 Form to include 10 new lines and the 13 revised or renumbered lines.
- Aatrix has tested the new form, and it’s ready for 2nd quarter filing.
- Select the 941 from within your payroll solution and Click eFile!
Details Of IRS Form 941 Changes
Among the changes to Part 1:
- Additional instructions for Lines 5a, 5a(i), and 5a(ii) were added: “Include taxable qualified sick and family leave wages for leave taken after March 31, 2021, on line 5a. Use lines 5a(i) and 5a(ii) only for wages paid after March 31, 2020, for leave taken before April 1, 2021.”
- Line 11b: Nonrefundable portion of the credit for qualified sick and family leave wages for leave taken before April 1, 2021. This line previously was used to report the non-refundable portion of the credits regardless of when the attributable leave was taken.
- Line 11d: Nonrefundable portion of the credit for qualified sick and family leave wages for leave taken after March 31, 2021. This line previously was used to report the total amount of nonrefundable credits.
- Line 11e (new): Non-refundable portion of COBRA premium assistance credit.
- Line 11f (new): Number of individuals provided COBRA premium assistance.
- Line 11g (new): Total nonrefundable credits. Add lines 11a, 11b, 11c, 11d, and 11e.
- Line 12: This line was revised to report the result of subtracting the amount on Line 11g from Line 10. Previously, the line required subtracting the amount on Line 11d from Line 10.
- Line 13c: Refundable portion of the credit for qualified sick and family leave wages for leave taken before April 1, 2021. This line previously was used to report the refundable portion of the credits regardless of when the attributable leave was taken.
- Line 13e: Refundable portion of the credit for qualified sick and family leave wages for leave taken after March 31, 2021. This line previously was used to report the total amount of deposits and refundable credits.
- Line 13f: Refundable portion of COBRA premium assistance credit. This line previously was used to report total advances received from filing Form(s) 7200 for the quarter.
- Line 13g: Total deposits and refundable credits. Add lines 13a, 13c, 13d, 13e, and 13f. This line previously was used to report total deposits and refundable credits less advances.
- Line 13h (new): Total advances received from filing Form(s) 7200 for the quarter. This information previously was reported using Line 13f.
- Line 13i (new): Subtract line 13h from line 13g to determine total deposits and refundable credits less advances. This information previously was reported using Line 13g and was determined by subtracting the amount from Line 13f from Line 13e. Among the changes to Part 3:Line 18a (new): Check the box if you’re a seasonal employer and you don’t have to file a return for every quarter of the year.
Among the changes to Part 2:
- Line 18b (new): Check the box if you’re eligible for the employee retention credit solely because your business is a recovery startup business.
- Line 19: Qualified health plan expenses allocable to qualified sick leave wages for leave taken before April 1, 2021. This line previously was used to report qualified health plan expenses allocable to qualified sick leave wages regardless of when the attributable leave was taken.
- Line 20: Qualified health plan expenses allocable to qualified family leave wages for leave taken before April 1, 2021. This line previously was used to report qualified health plan expenses allocable to qualified family leave wages regardless of when the attributable leave was taken.
- Line 22: This line was revised to clarify that it is to report qualified health plan expenses for the employee retention credit.
- Line 23: Qualified sick leave wages for leave taken after March 31, 2021. This line previously was used to report the amount of the credit from Form 5884-C, line 11, for the reported quarter.
- Line 24: Qualified health plan expenses allocable to qualified sick leave wages reported on Line 23. This line previously was indicated as reserved for future use.
- Line 25: Amounts under certain collectively bargained agreements allocable to qualified sick leave wages reported on Line 23. This line previously was indicated as reserved for future use.
- Line 26 (new): Qualified family leave wages for leave taken after March 31, 2021.
- Line 27 (new): Qualified health plan expenses allocable to qualified family leave wages reported on line 26.
- Line 28 (new): Amounts under certain collectively bargained agreements allocable to qualified family leave wages reported on line 26.
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