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. 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).

Employers reporting the CARES Act employee retention credit and/or the FFCRA paid leave credits will need to complete the new Form 941, worksheet 1 (not yet available).

The IRS states that the Form 941 instructions will be soon be available and will be posted here.

Additional fields added to Form 941

The draft Form 941 shows that the following lines will be added or changed for purposes of the new COVID-19 federal employment tax provisions.

Line 11b. Nonrefundable portion of credit for qualified sick and family leave wages from Worksheet 1

Line 11c. Nonrefundable portion of employee retention credit from Worksheet 1

Line 13a. Total deposits for the quarter, including overpayment applied from the prior quarter and overpayment applied from Form 941-X, 941-X(PR), 944-X, or 944-X(SP) filed in the current quarter

Line 13b. Deferred amount of the employer share of Social Security tax

Line 13c. Refundable portion of credit for qualified sick and family leave from Worksheet 1

Line 13d: Refundable portion of the employee retention credit from Worksheet 1

Line 13e. Total deposits, deferrals, and refund credits. (Add lines 13a, 13b, 13c, and 13d)

Line 13f. Total advances received from filing Form(s) 7200 for the quarter

Line 13g.Total deposits, deferrals, and refundable credits less advances. (Subtract line 13f from line 13e)

For more information about the FFCRA and CARES Act employer provisions, download our special report.

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