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IRS Updates Form 941, Employer’s Quarterly Federal Tax Return

The IRS has released the latest version of the Form 941 (Employer’s Quarterly Federal Tax Return), which must be filed each quarter by employers to report income taxes, Social Security tax or Medicare tax withheld from employees’ paychecks, and to pay the employer’s portion of Social Security or Medicare tax.

The second quarter form reflects changes made by the American Rescue Plan Act (ARPA) and other legislation enacted as a result of COVID-19. These updates include the following:

  • New lines for claiming credit for COBRA premium subsidy payments under the ARPA;
  • Changes to the way employers report qualified sick and family leave wages and the credit for these wages; 
  • Instructions for claiming the employee retention credit for wages paid before July 1, 2021.

The deadline to file Form 941 for the second quarter was August 2, 2021. For the third quarter, Form 941 is due by November 1, 2021.

Next Steps for Employers

Employers are encouraged to consult with their legal counsel and/or tax professional for additional information on the COBRA premium subsidy payments and tax filings.

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.