Instructions for Schedule R (Form 941) (Rev. September 2020). Instructions for Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers-2025

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Youre required to file a separate Form 941 for each quarter (first quarter - January through March, second quarter - April through June, third quarter - July through September, fourth quarter - October through December). Form 941 is generally due by the last day of the month following the end of the quarter.
Wages for OASDI (Social Security) and Medicare are calculated by adding all earnings (including any taxable fringe benefits) less the following qualifying pre-tax deductions: insurance, parking, and UT FLEX.
Social Security is financed through a dedicated payroll tax. Employers and employees each pay 6.2 percent of wages up to the taxable maximum of $176,100 (in 2025), while the self-employed pay 12.4 percent.
Each must also pay a 1.45% Medicare tax on all earnings. If youre self-employed, you pay the combined employee and employer amount. This amount is a 12.4% Social Security tax on up to $176,100 of your net earnings and a 2.9% Medicare tax on your entire net earnings.
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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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.
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

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