941 Report - Rev. June 2021
Quarterly reports
Form 941, also known as the Employer's Quarterly Federal Tax Form, is the form an employer uses to report employment taxes, withholding amounts, deposit amounts, and amounts due to the IRS. For detailed instructions, see the IRS Instructions for Form 941, revised June 2021.
On June 25th, the IRS has released the revised Form 941, Employer’s Federal Quarterly Tax Return, and its instructions for the second quarter of 2021. In addition, the IRS has released a revised version of Schedule R, Allocation Schedule for Aggregate Form 941 Filers, and its instructions, and revised Instructions for Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors.
Note: Only the instructions for Schedule B needed to be updated, you should continue using the current version dated January 2017.
Form 941 and its instructions have been revised to account for tax law changes made by the American Rescue Plan Act of 2021 (ARPA). Generally, ARPA extended the tax credits for qualified sick and family leave wages similar to the credits that
were previously enacted under the Families First Coronavirus Response Act (FFCRA) and amended and extended by the Consolidated Appropriations Act, 2021. The credits are now available for qualified leave wages paid for leave taken after March 31, 2021,
and before October 1, 2021. Similarly, ARPA amended and extended the employee retention credit or qualified wages paid before January 1, 2022. ARPA also added a new credit for COBRA premium assistance payments that is available for periods of coverage
beginning on or after April 1, 2021, through periods of coverage beginning on or before September 30, 2021.
The Form 941 instructions now include five worksheets:
(1) Credit for Qualified Sick and Family Leave Wages for Leave Taken Before April 1, 2021;
(2) Employee Retention Credit for the Second Quarter of 2021 Only (Wages Paid After March 31, 2021, and Before July 1, 2021);
(3) Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021;
(4) Employee Retention Credit for Third and Fourth Quarters of 2021 Only (Qualified Wages Paid After June 30, 2021); and
(5) COBRA Premium Assistance Credit.
The 2021.05.169 version of Caselle has the updates for the new 941 form. We recommend loading this version before using the form information to file your 941, as some fields have been added or changed.
What's new
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Connect 2021.11 or later includes the COVID-19 related credit for qualified sick and family leave wages.
Resources
IRS Instructions for Form 941, revised June 2021
IRS Form 941, revised June 2021
Printing 941 Report
1. Open Connect Payroll > Reports > 941 Report.
2. Use the Title box to select a report definition.
3. Select the report range.www.irs.
Report dates
How do I change the report date range?
How do I change the date type?
How do I change the date type?
How do I prompt a user to enter a date?
4. Set up the report options on the Report Options tab.
Print detail report and Print form checkboxes
5. Set up the report information on the Fields 1 tab.
Fields 1 tab
Pay codes for adjustments for tips and group-term life insurance (9)
Pay codes for qualified sick leave wages (5ai)
Pay codes for qualified family leave images (5aii)
6. Set up the options on the Fields 2 tab.
Fields 2 tab
Tax due on unreported tips (5f)
Qualified small business tax credits (11a)
Nonrefundable employee retention credit (11c)
Nonrefundable credit for qualified sick and family leave wages after March 31, 2021 (11d)
Nonrefundable portion of COBRA premium assistance credit (11e)
Number of individuals provided COBRA premium assistance (11f)
Total deposits for this quarter (13a)
Refundable employee retention credit (13d)
Refundable portion of credit for qualified sick and family leave wages after March 31, 2021 (13e)
Refundable portion of COBRA premium assistance credit (13f)
Total advances received from filing Form(s) 7200 (13h)
Qualified wages for employee retention credit (21)
Qualified health plan expenses for the employee retention credit (22)
Credit from Form 5884-C, line 11 (23)
Qualified health plan expenses allocable to qualified sick leave wage reported on line 23 (24)
Qualified family leave wages for leave taken after March 31, 2021 (26)
Qualified health expenses allocable to qualified family leave wages reported on line 26 (27)
6. Set up the Selection Criteria, Report Order, and Columns.
How do I set up the Selection Criteria?
How do I set up the Report Order?
How do I set up the Report Sections?
7. Click Print 
(CTRL+P).
The report prints.
202111, 2021Jul06
Pay codes for sick pay (8)
Sick pay generally means any amount paid under a plan because of an employee's temporary absence from work due to injury, sickness, or disability. It may be paid by either the employer or a third party, such as an insurance company. Sick pay includes both short- and long-term benefits. It is often expressed as a percentage of the employee's regular wages (source: www.irs.gov).
Use Pay Codes for Sick Pay (8) to select the pay codes that record amounts for sick pay. Click Select. Use the Selection form to move the pay codes for sick pay to the Selected Pay Codes list.
This value prints on line 8 on the 941 Report.
Pay codes for adjustments for tips and group-term life insurance (9)
First, use Pay Codes for Adjustments for Tips and Group-term Life Insurance to select the pay codes that record adjustments for employee tips and group-term life insurance. Click Select. Use the Selection form to move the pay codes that record adjustments for tips and group-term life insurance to the Selected Pay Codes list.
Second, use the Additional Amount for 7c field to enter an amount. The report will total the pay codes listed in the Pay Codes for Adjustments... and add the additional amount (source: www.irs.gov).
This value prints on line 9 on the 941 report.
Pay codes for qualified sick leave and wages (5a(i))
Enter the qualified taxable sick leave wages you paid to your employees during the quarter for leave taken before April 1, 2021. Qualified sick leave wages for leave taken before April 1, 2021, aren't subject to the employer share of social security tax; therefore, the tax rate on these wages is 6.2% (0.062). Stop paying social security tax on and entering an employee's wages on line 5a(i) when the employee's taxable wages, including wages reported on line 5a, qualified sick leave wages reported on line 5a(i), qualified family leave wages reported on line 5a(ii), and tips, reach $142,800 for the year. See the instructions for line 5c for reporting Medicare tax on qualified sick leave wages, including the portion above the social security wage base. (source: www.irs.gov)
This value prints on line 5a(i) on the 941 report.
Pay codes for qualified family leave wages (5a(ii))
Enter the qualified taxable family leave wages you paid to your employees during the quarter for leave taken before April 1, 2021. Qualified family leave wages for leave taken before April 1, 2021, aren't subject to the employer share of social security tax; therefore, the tax rate on these wages is 6.2% (0.062). Stop paying social security tax on and entering an employee's wages on line 5a(ii) when the employee's taxable wages, including wages reported on line 5a, qualified sick leave wages reported on line 5a(i), qualified family leave wages reported on line 5a(ii), and tips, reach $142,800 for the year. See the instructions for line 5c for reporting Medicare tax on qualified family leave wages, including the portion above the social security wage base. (source: www.irs.gov)
This value prints on line 5a(ii).
Pay codes used for third-party FWT, Social Security, and Medicare
Select the pay codes that your organization will use to report third-party FWT, Social Security, and Medicare.
Tax due on unreported tips (5f)
Enter the tax due from your Section 3121(q) Notice and Demand on line 5f. The IRS issues a Section 3121(q) Notice and Demand to advise an employer of the amount of tips received by employees who failed to report or underreported tips to the employer. An employer isn't liable for the employer share of the social security and Medicare taxes on unreported tips until notice and demand for the taxes is made to the employer by the IRS in a Section 3121(q) Notice and Demand. The tax due may have been determined from tips reported to the IRS on employees' Forms 4137, Social Security and Medicare Tax on Unreported Tip Income, or other tips that weren't reported to their employer as determined by the IRS during an examination. For additional information, see Rev. Rul. 2012-18, 2012-26 I.R.B. 1032, available at IRS.gov/irb/2012-26_IRB#RR-2012-18. (source: www.irs.gov)
This value prints on line 5f on the 941 report.
Qualified small business tax credits (11a)
Enter the amount of the credit from Form 8974, line 12 (source: www.irs.gov).
Note: If you enter an amount on line 11a, you must attach Form 8974. The December 2017 revision of Form 8974 instructs you to enter the amount from Form
8974, line 12, on Form 941, line 11. Instead, the amount
from Form 8974, line 12, should be entered on Form 941, line 11a.
This value prints on line 11(a) on the 941 report.
Nonrefundable credit for qualified sick and family leave wages for leave taken before April 1, 2021 (11b)
Enter the nonrefundable portion of the credit for qualified sick and family leave wages from Worksheet 1, Step 2, line 2j. The credit for qualified sick and family leave wages consists of the qualified sick leave wages, the qualified family leave wages, the qualified health plan expenses allocable to those wages, and the employer share of Medicare tax allocable to those wages. (source: www.irs.gov)
Nonrefundable employee retention credit (11c)
Instructions for the Third and Fourth Quarters of 2021: Enter the nonrefundable portion of the employee retention credit from Worksheet 4, Step 2, line 2h. The employee retention credit is 70% of the qualified wages you paid to your employees in the quarter. Qualified wages include qualified health plan expenses for the employee retention credit. The nonrefundable portion of the credit is limited to the employer share of Medicare tax reported on Form 941, line 5c, after that share is first reduced by any credit claimed for the nonrefundable portion of the credit for qualified sick and family leave wages for leave taken after March 31, 2021. (source: www.irs.gov)
Nonrefundable credit for qualified sick and family leave wages after March 31, 2021 (11d)
Enter the nonrefundable credit for qualified sick and family leave wages after March 31, 2021 to be reported on line 11d on the 941 report.
Nonrefundable portion of COBRA premium assistance credit (11e)
Enter the nonrefundable portion of COBRA premium assistance credit to be reported on line 11e on the 941 report.
Number of individuals provided COBRA premium assistance (11f)
Enter the number of individuals provided COBRA premium assistance to be reported on line 11 on the 941 report.
Total deposits for this quarter (13a)
Enter your deposits for this quarter, including any overpayment from a prior quarter that you applied to this return. Also include in the amount shown any overpayment that you applied from filing Form 941-X, 941-X (PR), 944-X, or 944-X (SP) in the current quarter. Don’t include any amount that you don’t deposit because you chose to defer the employer share of social security tax. (source: www.irs.gov)
Refundable credit for qualified sick and family leave wages for leave taken before April 1, 2021 (13c)
Enter the refundable credit for qualified sick and family leave wages for leave taken before April 1, 2021 to be reported on line 13c on the 941 report.
Refundable employee retention credit (13d)
Credit for wages paid after June 30, 2021, and before January 1, 2022 (third and fourth quarters). Enter the refundable portion of the employee retention credit from Worksheet 4, Step 2, line 2i.
Refundable portion of credit for qualified sick and family leave wages after March 31, 2021 (13e)
Enter the refundable portion of credit for qualified sick and family leave wages after March 31, 2021 to be reported on line 13e on the 941 report.
Refundable portion of COBRA premium assistance credit (13f)
Enter the refunadable portion of COBRA premium assistance credit to be reported on line 13f on the 941 report.
Total advances received from filing Form(s) 7200 (13h)
Enter the total advances received from filing Form(s) 7200 to be reported on line 13h on the 941 report.
Qualified health plan expenses allocable to qualified sick leave wages for leave taken before April 1, 2021 (19)
Enter the qualified health plan expenses allocable to qualified sick leave wages for leave taken before April 1, 2021 on line 19 on the 941 report.
This amount is also entered on Worksheet 1, Step 2, line 2b.
(source: www.irs.gov)
Qualified health plan expenses allocable to qualified family leave wages before April 1, 2021 (20)
Enter the qualified health plan expenses allocable to qualified family leave wages for leave taken before April 1, 2021 to be reported on line 20 on the 941 report..
This amount is also entered on Worksheet 1, Step 2, line 2f. 21.
(source: www.irs.gov)
Qualified wages for employee retention credit (21)
Enter the qualified wages for the employee retention credit (excluding the amount of any qualified health plan expenses allocable to these wages). This amount is also entered on Worksheet 1, Step 3, line 3a.
(source: www.irs.gov)
Qualified health plan expenses for the employee retention credit (22)
Enter the qualified health plan expenses for the employee retention credit to be reported on line 22 on the 941 report.
These expenses are generally allocable to the wages reported on Form 941, Part 3, line 21. However, in some circumstances, qualified health plan expenses for purposes of the employee retention credit are treated as allocable to qualified wages for the employee retention credit even if no wages are paid to the employees during the applicable period (for example, when you furlough an employee because your operations are fully or partially suspended due to a government order but you continue to pay qualified health plan expenses).
(source: www.irs.gov)
Qualified sick leave wages for leave taken after March 31, 2021 (23)
Enter the qualified sick leave wages for leave taken after March 31, 2021 to be reported on line 23 on the 941 report.
Qualified health plan expenses allocable to qualified sick leave wages reported on line 23 (24)
Enter the qualified health plan expenses allocable to qualified sick leave wages reported on line 24 on the 941 report.
Amounts under certain collectively bargained agreements allocable to qualified sick leave wages reported on line 23 (25)
Enter the amounts under certain collectively bargained agreements allocable to qualified sick leave wages reported on line 23 reported on line 25 on the 941 report.
Qualified family leave wages for leave taken after March 31, 2021 (26)
Enter the qualified family leave wages for leave taken after March 31, 2021 reported on line 26 on the 941 report.
Qualified health expenses allocable to qualified family leave wages reported on line (27)
Enter the qualified health expenses allocable to qualified famimly leave wages reported on line 26 reported on line 27 on the 941 report.
Amounts under certain collectively bargained agreements allocable to qualified family leave wages reported on line 26 (28)
Enter the amounts under certain collectively bargained agreements allocable to qualified family leave wages reported on line 26 that is reported on line 28 on the 941 report.
Print detail report
The detail report prints this information for each employee: Social Security Number, Total Wages and Allowances, Not Subject Amount, Amount Over Limit, and Taxable Amount. Use the detail report to check the employee information that will print on the report.
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Print form
If you're printing Form 941, select the form definition for printing Form 941.
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