Get the up-to-date Instructions for Schedule R (Form 941) (Rev. June 2020). Instructions for Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers-2025 now

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(Check one.) Go to .irs.gov/Form941 for instructions and the latest information. Read the separate instructions before you complete Form 941. Type or print within the boxes.
Employers use Form 941 to: Report income taxes, Social Security tax, or Medicare tax withheld from employees paychecks. Pay the employers portion of Social Security or Medicare tax.
Form 941 has been in the news more over the past few months because some employers are amending their Form 941 to get a retroactive refund of a COVID-19 payroll tax credit. That credit, known as the Employee Retention Tax Credit, was introduced through the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Other third-party payers that file aggregate Forms 941, such as non-certified PEOs, must complete and file Schedule R if they have clients that are claiming the qualified small business payroll tax credit for increasing research activities, the credit for qualified sick and family leave wages, or the employee retention
Form 941 Lines 5a-5d On lines 5a and 5b, you must multiply taxable Social Security wages (5a) and taxable Social Security tips (5b) by 0.124. The decimal represents the rate of Social Security tax on taxable wages. Both you and your employee must contribute 6.2% each paycheck for Social Security.
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Schedule R to claim a nonrefundable credit for the elderly or disabled.
Who Must File Form 941? If you pay wages subject to federal income tax withholding or social security and Medicare taxes, you must file Form 941 quarterly to report the following amounts. security and Medicare taxes. Medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance.
The Schedule R (Form 941) allocates those aggregate wages reported on Form 941 to each of the clients. Section 3504 agents who elect to file an aggregate Form 940 on behalf of home health care service recipients and all CPEOs must attach a Schedule R (Form 940) to their aggregate Form 940.

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