While most tax and information return due dates were extended until July 15, 2020, the IRS Form 941, Employer’s Quarterly Federal Tax Return, due date was not extended. The due date for Form 941 remains April 30, 2020. Remember, the IRS is still not processing paper returns, so it is probably best to e-file these returns.
Here are some key things to remember when filling out this first quarterly return:
- Taxpayers who have not been approved for Paycheck Protection Program loan forgiveness may defer depositing the payment of the employer’s 6.2% share of Social Security taxes and Railroad Retirement Tax for the period March 27, 2020, through December 31, 2020. (CARES Act §2302) In FAQs posted on its website on April 16, 2020, the IRS included the statement below, but to date has not provided any update:
The Form 941, Employer’s Quarterly Federal Tax Return, will be revised for the second calendar quarter of 2020 (April–June, 2020). Information will be provided in the near future to instruct employers how to reflect the deferred deposits and payments otherwise due on or after March 27, 2020, for the first quarter of 2020 (January–March 2020). In no case will Employers be required to make a special election to be able to defer deposits and payments of these employment taxes. (FAQ #2, available at: www.irs.gov/newsroom/deferral-of-employment-tax-deposits-and-payments-through-december-31-2020)
- Employers claiming the Employee Retention Credit against the employer’s share of Social Security/Railroad Retirement taxes will not claim the credit on their first quarter Form 941. Eligible employers will add the 50% of qualified wages paid to an employee(s) between March 13, 2020, and March 31, 2020, inclusive, to the 50% of any qualified wages paid during the second quarter of 2020 on their second quarter Form 941, 941-SS, or 941-PR.
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