Instructions for Form 941-SS - Introductory Material Future Developments What's New Social security and Medicare tax for 2023. Qualified small business payroll tax credit for increasing research activities. Forms 941-SS and 941-PR discontinued after 2023. Pubs. 80, 51, and 179 discontinued after 2023. Reminders The COVID-19 related credit for qualified sick and family leave wages is limited to leave taken after March 31, 2020, and before October 1, 2021. Advance payment of COVID-19 credits ended. Payroll tax credit for certain tax-exempt organizations affected by qualified disasters. Certification program for professional employer organizations (PEOs). Outsourcing payroll duties. COVID-19 employment tax credits when return filed by a third-party payer. Aggregate Form 941-SS filers. Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. Correcting a previously filed Form 941-SS. Federal tax deposits must be made by electronic funds transfer (EFT). Same-day wire payment option. Timeliness of federal tax deposits. Electronic filing and payment. Electronic funds withdrawal (EFW). Credit or debit card payments. Online payment agreement. Paid preparers. Where can you get telephone help? Photographs of missing children. General Instructions: Purpose of Form 941-SS Who Must File Form 941-SS? Exceptions Requesting To File Forms 941-SS Instead of Form 944, or Requesting To File Form 944 Instead of Forms 941-SS Requesting to file Forms 941-SS instead of Form 944. Requesting to file Form 944 instead of Forms 941-SS. Where to send written requests. What if You Reorganize or Close Your Business? If You Sell or Transfer Your Business . . . If Your Business Has Closed . . . When Must You File? How Should You Complete Form 941-SS? Employer identification number (EIN). If you change your business name, business address, or responsible party . . . Check the Box for the Quarter Completing and Filing Form 941-SS Complete all three pages. Reconciling Forms 941-SS With Form W-3SS Where Should You File? Depositing Your Taxes Must You Deposit Your Taxes? Reducing your deposits for the credit for qualified sick and family leave wages. When Must You Deposit Your Taxes? Determine if You’re a Monthly or Semiweekly Schedule Depositor for the Quarter What About Penalties and Interest? Avoiding Penalties and Interest Adjustment of Tax on Tips Where Can You Obtain Forms? Specific Instructions: Part 1: Answer These Questions for This Quarter 1. Number of Employees Who Received Wages, Tips, or Other Compensation 4. If No Wages, Tips, and Other Compensation Are Subject to Social Security or Medicare Tax . . . 5a–5e. Taxable Social Security and Medicare Wages and Tips 5a. Taxable social security wages. EPSLA. Son or daughter. Limits on qualified sick leave wages. Expanded FMLA. Rate of pay and limit on wages. 5a(i). Qualified sick leave wages. 5a(ii). Qualified family leave wages. 5b. Taxable social security tips. 5c. Taxable Medicare wages & tips. 5d. Taxable wages & tips subject to Additional Medicare Tax withholding. 5e. Total social security and Medicare taxes. 5f. Section 3121(q) Notice and Demand—Tax Due on Unreported Tips 6. Total Taxes Before Adjustments 7–9. Tax Adjustments Current quarter's adjustments. 7. Current quarter's adjustment for fractions of cents. 8. Current quarter's adjustment for sick pay. 9. Current quarter's adjustments for tips and group-term life insurance. Prior quarter's adjustments. 10. Total Taxes After Adjustments 11a. Qualified Small Business Payroll Tax Credit for Increasing Research Activities 11b. Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021 Qualified health plan expenses allocable to qualified sick leave and family leave wages. 11d. Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021 Qualified health plan expenses allocable to qualified sick leave and family leave wages. Collectively bargained defined benefit pension plan contributions. Pension contribution rate. Allocation rules. Collectively bargained apprenticeship program contributions. Apprenticeship program contribution rate. Allocation rules. Highly compensated employee. 11g. Total Nonrefundable Credits 12. Total Taxes After Adjustments and Nonrefundable Credits 13a. Total Deposits for This Quarter 13c. Refundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021 13e. Refundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021 13g. Total Deposits and Refundable Credits 14. Balance Due What if you can't pay in full? 15. Overpayment Part 2: Tell Us About Your Deposit Schedule and Tax Liability for This Quarter 16. Tax Liability for the Quarter De minimis exception. Monthly schedule depositor. Reporting adjustments from lines 7–9 on line 16. Semiweekly schedule depositor. Adjusting tax liability for nonrefundable credits claimed on lines 11a, 11b, and 11d. Qualified small business payroll tax credit for increasing research activities (line 11a). Nonrefundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2020, and before April 1, 2021 (line 11b). Example. Nonrefundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021 (line 11d). Part 3: Tell Us About Your Business 17. If Your Business Has Closed . . . 18. If You’re a Seasonal Employer . . . 19. Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021 20. Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021 23. Qualified Sick Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021 24. Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Reported on Line 23 25. Amounts Under Certain Collectively Bargained Agreements Allocable to Qualified Sick Leave Wages Reported on Line 23 26. Qualified Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021 27. Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages Reported on Line 26 28. Amounts Under Certain Collectively Bargained Agreements Allocable to Qualified Family Leave Wages Reported on Line 26 Part 4: May We Speak With Your Third-Party Designee? Part 5: Sign Here (Approved Roles) Alternative signature method. Paid Preparer Use Only How To Get Forms, Instructions, and Publications From the IRS Worksheet 1. Credit for Qualified Sick and Family Leave Wages Paid This Quarter of 2023 for Leave Taken After March 31, 2020, and Before April 1, 2021 Worksheet 2. Credit for Qualified Sick and Family Leave Wages Paid This Quarter of 2023 for Leave Taken After March 31, 2021, and Before October 1, 2021 Instructions for Form 941-SS (03/2023) Employer's QUARTERLY Federal Tax Return—American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands Section references are to the Internal Revenue Code unless otherwise noted. Revised: 03/2023 Instructions for Form 941-SS - Introductory Material Future Developments For the latest information about developments related to Form 941-SS and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form941SS. What's New Social security and Medicare tax for 2023. The rate of social security tax on taxable wages, including qualified sick leave wages and qualified family leave wages paid in 2023 for leave taken after March 31, 2021, and before October 1, 2021, is 6.2% each for the employer and employee or 12.4% for both. Qualified sick leave wages and qualified family leave wages paid in 2023 for leave taken after March 31, 2020, and 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%. The social security wage base limit is $160,200. The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2022 There is no wage base limit for Medicare tax. Social security and Medicare taxes apply to the wages of household workers you pay $2,600 or more in cash wages in 2023. Social security and Medicare taxes apply to election workers who are paid $2,200 or more in cash or an equivalent form of compensation in 2023. Qualified small business payroll tax credit for increasing research activities. For tax years beginning before January 1, 2023, a qualified small business may elect to claim up to $250,000 of its credit for increasing research activities as a payroll tax credit. The Inflation Reduction Act of 2022 (the IRA) increases the election amount to $500,000 for tax years beginning after December 31, 2022. The payroll tax credit election must be made on or before the due date of the originally filed income tax return (including extensions). The portion of the credit used against payroll taxes is allowed in the first calendar quarter beginning after the date that the qualified small business filed its income tax return. The election and determination of the credit amount that will be used against the employer’s payroll taxes are made on Form 6765, Credit for Increasing Research Activities. The amount from Form 6765, line 44, must then be reported on Form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities. Starting in the first quarter of 2023, the payroll tax credit is first used to reduce the employer share of social security tax up to $250,000 per quarter and any remaining credit reduces the employer share of Medicare tax for the quarter. Any remaining credit, after reducing the employer share of social security tax and the employer share of Medicare tax, is then carried forward to the next quarter. Form 8974 is used to determine the amount of the credit that can be used in the current quarter. The amount from Form 8974, line 12 or, if applicable, line 17, is reported on line 11a. For more information about the payroll tax credit, see IRS.gov/ResearchPayrollTC. Also see Adjusting tax liability for nonrefundable credits claimed on lines 11a, 11b, and 11d , later. Forms 941-SS and 941-PR discontinued after 2023. Form 941-SS and Form 941-PR, Planilla para la Declaración Federal TRIMESTRAL del Patrono, will no longer be available after the fourth quarter of 2023. Instead, employers in the U.S. territories will file Form 941, Employer’s QUARTERLY Federal Tax Return, or, if you prefer your form and instructions in Spanish, you can file new Form 941 (sp), Declaración del Impuesto Federal TRIMESTRAL del Empleador. Pubs. 80, 51, and 179 discontinued after 2023. Pub. 80, Federal Tax Guide for Employers in the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands; Pub. 51, Agricultural Employer's Tax Guide; and Pub. 179, Guía Contributiva Federal para Patronos Puertorriqueños, will no longer be available after 2023. Instead, information specific to employers in the U.S. territories and agricultural employers will be included in Pub. 15, Employer's Tax Guide, beginning with the Pub. 15 for use in 2024 (published December 2023). Beginning in 2024, there will be a new Pub. 15 (sp) that is a Spanish-language version of Pub. 15. Reminders Use the March 2023 revision of Form 941-SS to report taxes for the first quarter of 2023; don't use an earlier revision to report taxes for 2023. At this time, the IRS expects the March 2023 revision of Form 941-SS and these instructions to also be used for the second, third, and fourth quarters of 2023. If changes in law require additional changes to Form 941-SS, the form and/or these instructions may be revised. Prior revisions of Form 941-SS are available at IRS.gov/Form941SS (select the link for "All Form 941-SS Revisions" under "Other Items You May Find Useful"). The COVID-19 related credit for qualified sick and family leave wages is limited to leave taken after March 31, 2020, and before October 1, 2021. Generally, the credit for qualified sick and family leave wages, as enacted under the Families First Coronavirus Response Act (FFCRA) and amended and extended by the COVID-related Tax Relief Act of 2020, for leave taken after March 31, 2020, and before April 1, 2021, and the credit for qualified sick and family leave wages under sections 3131, 3132, and 3133 of the Internal Revenue Code, as enacted under American Rescue Plan Act of 2021 (the ARP), for leave taken after March 31, 2021, and before October 1, 2021, have expired. However, employers that pay qualified sick and family leave wages in 2023 for leave taken after March 31, 2020, and before October 1, 2021, are eligible to claim a credit for qualified sick and family leave wages in the quarter of 2023 in which the qualified wages were paid. For more information, see the instructions for line 11b, line 11d, line 13c, and line 13e, later. Use Worksheet 1 to figure the credit for leave taken after March 31, 2020, and before April 1, 2021. Use Worksheet 2 to figure the credit for leave taken after March 31, 2021, and before October 1, 2021. For more information about the credit for qualified sick and family leave wages, go to IRS.gov/PLC. Advance payment of COVID-19 credits ended. Although you may pay qualified sick and family leave wages in 2023 for leave taken after March 31, 2020, and before October 1, 2021, you may no longer request an advance payment of any credit on Form 7200, Advance Payment of Employer Credits Due to COVID-19. Payroll tax credit for certain tax-exempt organizations affected by qualified disasters. Section 303(d) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 allows for a payroll tax credit for certain tax-exempt organizations affected by certain qualified disasters not related to COVID-19. This credit is claimed on Form 5884-D (not on Form 941-SS). Form 5884-D is filed after the Form 941-SS for the quarter for which the credit is being claimed has been filed. If you will claim this credit on Form 5884-D and you're also claiming a credit for qualified sick and family leave wages for leave taken before April 1, 2021, you must include any credit that will be claimed on Form 5884-D on Worksheet 1 for that quarter. For more information about this credit, go to IRS.gov/Form5884D. Certification program for professional employer organizations (PEOs). The Stephen Beck, Jr., ABLE Act of 2014 required the IRS to establish a voluntary certification program for PEOs. PEOs handle various payroll administration and tax reporting responsibilities for their business clients and are typically paid a fee based on payroll costs. To become and remain certified under the certification program, certified professional employer organizations (CPEOs) must meet various requirements described in sections 3511 and 7705 and related published guidance. Certification as a CPEO may affect the employment tax liabilities of both the CPEO and its customers. A CPEO is generally treated for employment tax purposes as the employer of any individual who performs services for a customer of the CPEO and is covered by a contract described in section 7705(e)(2) between the CPEO and the customer (CPEO contract), but only for wages and other compensation paid to the individual by the CPEO. To become a CPEO, the organization must apply through the IRS Online Registration System. For more information or to apply to become a CPEO, go to IRS.gov/CPEO. CPEOs must generally file Form 941-SS and Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, electronically. For more information about a CPEO’s requirement to file electronically, see Rev. Proc. 2017-14, 2017-3 I.R.B. 426, available at IRS.gov/irb/2017-03_IRB#RP-2017-14. Outsourcing payroll duties. Generally, as an employer, you're responsible to ensure that tax returns are filed and deposits and payments are made, even if you contract with a third party to perform these acts. You remain responsible if the third party fails to perform any required action. Before you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer, such as a payroll service provider or reporting agent, go to IRS.gov/OutsourcingPayrollDuties for helpful information on this topic. If a CPEO pays wages and other compensation to an individual performing services for you, and the services are covered by a CPEO contract, then the CPEO is generally treated for employment tax purposes as the employer, but only for wages and other compensation paid to the individual by the CPEO. However, with respect to certain employees covered by a CPEO contract, you may also be treated as an employer of the employees and, consequently, may also be liable for federal employment taxes imposed on wages and other compensation paid by the CPEO to such employees. For more information on the different types of third-party payer arrangements, see section 16 of Pub. 15. COVID-19 employment tax credits when return filed by a third-party payer. If you're the common-law employer of the individuals that are paid qualified sick or family leave wages, you're entitled to the credit for the sick and family leave wages, regardless of whether you use a third-party payer (such as a PEO, CPEO, or section 3504 agent) to report and pay your federal employment taxes. The third-party payer isn't entitled to the credits with respect to the wages and taxes it remits on your behalf (regardless of whether the third party is considered an "employer" for other purposes). Aggregate Form 941-SS filers. Approved section 3504 agents and CPEOs must complete and file Schedule R (Form 941) when filing an aggregate Form 941-SS. Aggregate Forms 941-SS are filed by agents approved by the IRS under section 3504. To request approval to act as an agent for an employer, the agent files Form 2678 with the IRS unless you’re a state or local government agency acting as an agent under the special procedures provided in Rev. Proc. 2013-39, 2013-52 I.R.B. 830, available at IRS.gov/irb/2013-52_IRB#RP-2013-39. Aggregate Forms 941-SS are also filed by CPEOs approved by the IRS under section 7705. To become a CPEO, the organization must apply through the IRS Online Registration System at IRS.gov/CPEO. CPEOs file Form 8973, Certified Professional Employer Organization/Customer Reporting Agreement, to notify the IRS that they started or ended a service contract with a customer. CPEOs must generally file Form 941-SS and Schedule R (Form 941) electronically. For more information about a CPEO’s requirement to file electronically, see Rev. Proc. 2017-14, 2017-3 I.R.B. 426, available at IRS.gov/irb/2017-03_IRB#RP-2017-14. Other third-party payers that file aggregate Forms 941-SS, such as non-certified PEOs, must complete and file Schedule R (Form 941) if they have clients that are claiming the qualified small business payroll tax credit for increasing research activities, and/or the credit for qualified sick and family leave wages. If both an employer and a section 3504 authorized agent (or a CPEO or other third-party payer) paid wages to an employee during a quarter, both the employer and the section 3504 authorized agent (or CPEO or other third-party payer, if applicable) should file Form 941-SS reporting the wages each entity paid to the employee during the applicable quarter and issue Forms W-2 reporting the wages each entity paid to the employee during the year. If a third-party payer of sick pay is also paying qualified sick leave wages on behalf of an employer, the third party would be making the payments as an agent of the employer. The employer is required to do the reporting and payment of employment taxes with respect to the qualified sick leave wages and claim the credit for the qualified sick leave wages, unless the employer has an agency agreement with the third-party payer that requires the third-party payer to do the collecting, reporting, and/or paying or depositing employment taxes on the qualified sick leave wages. If the employer has an agency agreement with the third-party payer, the third-party payer includes the qualified sick leave wages on the third party's aggregate Form 941-SS, claims the sick leave credit on behalf of the employer on the aggregate Form 941-SS, and separately reports the credit allocable to the employers on Schedule R (Form 941). See section 6 of Pub. 15-A, Employer's Supplemental Tax Guide, for more information about sick pay reporting. Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. Qualified tax-exempt organizations that hire eligible unemployed veterans may be able to claim the work opportunity tax credit against their payroll tax liability using Form 5884-C. For more information, go to IRS.gov/WOTC. Correcting a previously filed Form 941-SS. If you discover an error on a previously filed Form 941-SS or if you otherwise need to amend a previously filed Form 941-SS, make the correction using Form 941-X. Form 941-X is filed separately from Form 941-SS. For more information, see the Instructions for Form 941-X, section 9 of Pub. 80, or go to IRS.gov/CorrectingEmploymentTaxes. Federal tax deposits must be made by electronic funds transfer (EFT). You must use EFT to make all federal tax deposits. Generally, an EFT is made using the Electronic Federal Tax Payment System (EFTPS). If you don't want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. EFTPS is a free service provided by the Department of the Treasury. Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. For more information on making federal tax deposits, see section 8 of Pub. 80. To get more information about EFTPS or to enroll in EFTPS, go to EFTPS.gov or call one of the following numbers. 800-555-4477 (toll free; for use by U.S. Virgin Islands only). 800-244-4829 (Spanish). 303-967-5916 (toll call). To contact EFTPS using Telecommunications Relay Services (TRS) for people who are deaf, hard of hearing, or have a speech disability, dial 711 and then provide the TRS assistant the 800-555-4477 number above or 800-733-4829. Additional information about EFTPS is also available in Pub. 966. For an EFTPS deposit to be on time, you must submit the deposit by 8 p.m. Eastern time the day before the date the deposit is due. Same-day wire payment option. If you fail to submit a deposit transaction on EFTPS by 8 p.m. Eastern time the day before the date a deposit is due, you can still make your deposit on time by using the Federal Tax Collection Service (FTCS) to make a same-day wire payment. To use the same-day wire payment method, you will need to make arrangements with your financial institution ahead of time. Please check with your financial institution regarding availability, deadlines, and costs. Your financial institution may charge you a fee for payments made this way. To learn more about the information you will need to give your financial institution to make a same-day wire payment, go to IRS.gov/SameDayWire. Timeliness of federal tax deposits. If a deposit is required to be made on a day that isn't a business day, the deposit is considered timely if it is made by the close of the next business day. A business day is any day other than a Saturday, Sunday, or legal holiday. The term “legal holiday” for deposit purposes includes only those legal holidays in the District of Columbia. Legal holidays in the District of Columbia are provided in section 8 of Pub. 80. Electronic filing and payment. Businesses can enjoy the benefits of filing tax returns and paying their federal taxes electronically. Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make filing and paying easier. Spend less time worrying about taxes and more time running your business. Use e-file and EFTPS to your benefit. For e-file, go to IRS.gov/EmploymentEfile for additional information. A fee may be charged to file electronically. For EFTPS, go to EFTPS.gov or call one of the numbers provided under Federal tax deposits must be made by electronic funds transfer (EFT) , earlier. For electronic filing of Forms W-2AS, W-2CM, W-2GU, and W-2VI, go to SSA.gov/employer. You may be required to file Forms W-2 electronically. For details, see the General Instructions for Forms W-2 and W-3. If you’re filing your tax return or paying your federal taxes electronically, a valid employer identification number (EIN) is required at the time the return is filed or the payment is made. If a valid EIN isn't provided, the return or payment won't be processed. This may result in penalties. See Employer identification number (EIN), later, for information about applying for an EIN. Electronic funds withdrawal (EFW). If you file Form 941-SS electronically, you can e-file and use EFW to pay the balance due in a single step using tax preparation software or through a tax professional. However, don't use EFW to make federal tax deposits. For more information on paying your taxes using EFW, go to IRS.gov/EFW. Credit or debit card payments. You can pay the balance due shown on Form 941-SS by credit or debit card. Your payment will be processed by a payment processor who will charge a processing fee. Don't use a credit or debit card to make federal tax deposits. For more information on paying your taxes with a credit or debit card, go to IRS.gov/PayByCard. Online payment agreement. You may be eligible to apply for an installment agreement online if you can’t pay the full amount of tax you owe when you file your return. For more information, see What if you can't pay in full , later. Paid preparers. If you use a paid preparer to complete Form 941-SS, the paid preparer must complete and sign the paid preparer's section of the form. Where can you get telephone help? For answers to your questions about completing Form 941-SS or tax deposit rules, call the IRS at one of the numbers listed below. 800-829-4933 (toll free; for use by U.S. Virgin Islands only) or 800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability), Monday–Friday from 7:00 a.m. to 7:00 p.m. local time. 267-941-1000 (toll call), Monday–Friday from 6:00 a.m. to 11:00 p.m. Eastern time. Photographs of missing children. The IRS is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children selected by the Center may appear in instructions on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. General Instructions: Purpose of Form 941-SS Use Form 941-SS to report social security and Medicare taxes for workers in American Samoa, Guam, the Commonwealth of the Northern Mariana Islands (CNMI), and the U.S. Virgin Islands. Pub. 80 explains the requirements for withholding, depositing, and paying social security and Medicare taxes. It explains the forms you must give your employees, those your employees must give you, and those you must send to the IRS. See Pub. 15-A for specialized employment tax information supplementing the basic information provided in Pub. 80. Federal law requires you, as an employer, to withhold certain taxes from your employees' pay. Each time you pay wages, you must withhold—or take out of your employees' pay—certain amounts for social security tax and Medicare tax. You must also withhold Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Under the withholding system, taxes withheld from your employees are credited to your employees in payment of their tax liabilities. Federal law also requires you to pay any liability for the employer share of social security and Medicare taxes. This share of social security and Medicare taxes isn't withheld from employees. Who Must File Form 941-SS? Generally, you must file a return for the first quarter in which you pay wages subject to social security and Medicare taxes, and for each quarter thereafter until you file a final return. Use Form 941-SS if your principal place of business is in American Samoa, Guam, the CNMI, or the U.S. Virgin Islands, or if you have employees who are subject to income tax withholding for these jurisdictions. Use Form 941-SS to report the following amounts. Wages you’ve paid. Tips your employees reported to you. Both the employer and the employee share of social security and Medicare taxes. Additional Medicare Tax withheld from employees. Current quarter's adjustments to social security and Medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance. Qualified small business payroll tax credit for increasing research activities. Credit for qualified sick and family leave wages paid this quarter of 2023 for leave taken after March 31, 2020, and before October 1, 2021. Don't use Form 941-SS if you have both employees who are subject to U.S. income tax withholding and employees who aren't subject to U.S. income tax withholding. Instead, you must file only Form 941 (or Form 944, Employer's ANNUAL Federal Tax Return) and include all of your employees' wages on that form. Don't use Form 941-SS to report backup withholding or income tax withholding on nonpayroll payments such as pensions, annuities, and gambling winnings. Report these types of withholding on Form 945, Annual Return of Withheld Federal Income Tax. Also, don't use Form 941-SS to report unemployment taxes. Report unemployment taxes (U.S. Virgin Islands employers only) on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. After you file your first Form 941-SS, you must file a return each quarter, even if you have no taxes to report, unless you filed a final return or one of the exceptions listed next applies. Exceptions Special rules apply to some employers. If you received notification to file Form 944, you must file Form 944 annually; don't file Form 941-SS quarterly. Seasonal employers don't have to file a Form 941-SS for quarters in which they have no tax liability because they have paid no wages. To tell the IRS that you won't file a return for one or more quarters during the year, check the box on line 18 every quarter you file Form 941-SS. The IRS generally won't inquire about unfiled returns if at least one taxable return is filed each year. However, you must check the box on line 18 on every quarterly return you file. Otherwise, the IRS will expect a return to be filed for each quarter. Employers of household employees don't usually file Form 941-SS. See Pub. 80, Pub. 926, and Schedule H (Form 1040) for more information. Employers of farm employees don't file Form 941-SS for wages paid for agricultural labor. See Form 943 and Pub. 51 for more information. If none of these exceptions apply and you haven't filed a final return, you must file Form 941-SS each quarter even if you didn't pay wages during the quarter. Use IRS e-file, if possible. Requesting To File Forms 941-SS Instead of Form 944, or Requesting To File Form 944 Instead of Forms 941-SS Requesting to file Forms 941-SS instead of Form 944. Employers in American Samoa, Guam, the CNMI, and the U.S. Virgin Islands that would otherwise be required to file Form 944 may contact the IRS to request to file quarterly Forms 941-SS instead of annual Form 944. To request to file quarterly Forms 941-SS to report your social security and Medicare taxes for the 2023 calendar year, you must either call the IRS at 800-829-4933 toll free (U.S. Virgin Islands only) or 267-941-1000 (toll call) between January 1, 2023, and April 3, 2023, or send a written request postmarked between January 1, 2023, and March 15, 2023. After you contact the IRS, the IRS will send you a written notice that your filing requirement has been changed to Forms 941-SS. You must receive written notice from the IRS to file Forms 941-SS instead of Form 944 before you may file these forms. If you don't receive this notice, you must file Form 944 for calendar year 2023. Requesting to file Form 944 instead of Forms 941-SS. If you’re required to file Forms 941-SS but believe your employment taxes for 2023 will be $1,000 or less, you may request to file Form 944 instead of Forms 941-SS by calling the IRS at 800-829-4933 toll free (U.S. Virgin Islands only) or 267-941-1000 (toll call) between January 1, 2023, and April 3, 2023, or sending a written request postmarked between January 1, 2023, and March 15, 2023. After you contact the IRS, the IRS will send you a written notice that your filing requirement has been changed to Form 944. You must receive written notice from the IRS to file Form 944 instead of Forms 941-SS before you may file this form. If you don't receive this notice, you must file Forms 941-SS for calendar year 2023. Where to send written requests. Written requests should be sent to: Department of the Treasury Internal Revenue Service Ogden, UT 84201-0038 For more information about these procedures, see Rev. Proc. 2009-51, 2009-45 I.R.B. 625, available at IRS.gov/irb/2009-45_IRB#RP-2009-51. What if You Reorganize or Close Your Business? If You Sell or Transfer Your Business . . . If you sell or transfer your business during the quarter, you and the new owner must each file a Form 941-SS for the quarter in which the transfer occurred. Report only the wages you paid. When two businesses merge, the continuing firm must file a return for the quarter in which the change took place and the other firm should file a final return. Changing from one form of business to another—such as from a sole proprietorship to a partnership or corporation—is considered a transfer. If a transfer occurs, you may need a new EIN. See Pub. 1635 and section 1 of Pub. 80 for more information. Attach a statement to your return with: The new owner's name (or the new name of the business); Whether the business is now a sole proprietorship, partnership, or corporation; The kind of change that occurred (a sale or transfer); The date of the change; and The name of the person keeping the payroll records and the address where those records will be kept. If Your Business Has Closed . . . If you permanently go out of business or stop paying wages to your employees, you must file a final return. To tell the IRS that Form 941-SS for a particular quarter is your final return, check the box on line 17 and enter the final date you paid wages. Also attach a statement to your return showing the name of the person keeping the payroll records and the address where those records will be kept. See Terminating a business in the General Instructions for Forms W-2 and W-3 for information about earlier dates for the expedited furnishing and filing of the following Wage and Tax Statements when a final Form 941-SS is filed. W-2AS, American Samoa. W-2CM, CNMI. W-2GU, Guam. W-2VI, U.S. Virgin Islands. If you participated in a statutory merger or consolidation, or qualify for predecessor-successor status due to an acquisition, you should generally file Schedule D (Form 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations. See the Instructions for Schedule D (Form 941) to determine whether you should file Schedule D (Form 941) and when you should file it. When Must You File? File your initial Form 941-SS for the quarter in which you first paid wages that are subject to social security and Medicare taxes. See the table titled When To File Form 941-SS, later. Then, you must file for every quarter after that—every 3 months—even if you have no taxes to report, unless you’re a seasonal employer or are filing your final return. See Seasonal employers and If Your Business Has Closed , earlier. File Form 941-SS only once for each quarter. If you filed electronically, don't file a paper Form 941-SS. For more information about filing Form 941-SS electronically, see Electronic filing and payment , earlier. When To File Form 941-SS Your Form 941-SS is due by the last day of the month that follows the end of the quarter. The Quarter Includes . . . Quarter Ends Form 941-SS Is Due 1. January, February, March March 31 April 30 2. April, May, June June 30 July 31 3. July, August, September September 30 October 31 4. October, November, December December 31 January 31 For example, you must generally report wages you pay during the 1st quarter—which is January through March—by April 30. If you made timely deposits in full payment of your taxes for the quarter, you may file by the 10th day of the 2nd month that follows the end of the quarter. For example, you may file Form 941-SS by May 10 if you made timely deposits in full payment of your taxes for the 1st quarter. If we receive Form 941-SS after the due date, we will treat Form 941-SS as filed on time if the envelope containing Form 941-SS is properly addressed, contains sufficient postage, and is postmarked by the U.S. Postal Service on or before the due date, or sent by an IRS-designated private delivery service (PDS) on or before the due date. If you don't follow these guidelines, we will generally consider Form 941-SS filed when it is actually received. For more information about PDSs, see Where Should You File, later. If any due date for filing falls on a Saturday, Sunday, or legal holiday, you may file your return on the next business day. How Should You Complete Form 941-SS? Type or print your EIN, name, and address in the spaces provided. Also enter your name and EIN on the top of pages 2 and 3. Don't use your social security number (SSN) or individual taxpayer identification number (ITIN). Generally, enter the business (legal) name you used when you applied for your EIN. For example, if you’re a sole proprietor, enter “Haleigh Smith” on the “Name” line and “Haleigh's Cycles” on the “Trade name” line. Leave the “Trade name” line blank if it is the same as your “Name.” If you use a tax preparer to fill out Form 941-SS, make sure the preparer shows your business name exactly as it appeared when you applied for your EIN. Employer identification number (EIN). To make sure that businesses comply with federal tax laws, the IRS monitors tax filings and payments by using a numerical system to identify taxpayers. A unique nine-digit EIN is assigned to all corporations, partnerships, and some sole proprietors. Businesses needing an EIN must apply for a number and use it throughout the life of the business on all tax returns, payments, and reports. Your business should have only one EIN. If you have more than one and aren't sure which one to use, write to the IRS office where you file your returns (using the Without a payment address under Where Should You File, later) or call the IRS at 800-829-4933 (toll free; for use by U.S. Virgin Islands only) or 267-941-1099 (toll call). If you don't have an EIN, you may apply for one online by going to IRS.gov/EIN. You may also apply for an EIN by faxing or mailing Form SS-4 to the IRS. If the principal business was created outside of the United States or U.S. territories, you may also apply for an EIN by calling 267-941-1099 (toll call). If you haven't received your EIN by the due date of Form 941-SS, write “Applied For” and the date you applied in this entry space. If you’re filing your tax return electronically, a valid EIN is required at the time the return is filed. If a valid EIN isn't provided, the return won't be accepted. This may result in penalties. Always be sure the EIN on the form you file exactly matches the EIN the IRS assigned to your business. Don't use your SSN or ITIN on forms that ask for an EIN. If you used an EIN (including a prior owner's EIN) on Form 941-SS that is different from the EIN reported on Form W-3SS, see Box h—Other EIN used this year in the General Instructions for Forms W-2 and W-3. Filing a Form 941-SS with an incorrect EIN or using another business's EIN may result in penalties and delays in processing your return. If you change your business name, business address, or responsible party . . . Notify the IRS immediately if you change your business name, business address, or responsible party. Write to the IRS office where you file your returns (using the Without a payment address under Where Should You File, later) to notify the IRS of any business name change. See Pub. 1635 to see if you need to apply for a new EIN. Complete and mail Form 8822-B to notify the IRS of a business address or responsible party change. Don't mail Form 8822-B with your Form 941-SS. For a definition of “responsible party,” see the Instructions for Form SS-4. Check the Box for the Quarter Under “Report for this Quarter of 2023” at the top of Form 941-SS, check the appropriate box of the quarter for which you're filing. Make sure the quarter checked is the same as shown on any attached Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors, and, if applicable, Schedule R (Form 941). Completing and Filing Form 941-SS Make entries on Form 941-SS as follows to enable accurate scanning and processing. Use 10-point Courier font (if possible) for all entries if you’re typing or using a computer to complete your form. Portable Document Format (PDF) forms on IRS.gov have fillable fields with acceptable font specifications. Don't enter dollar signs and decimal points. Commas are optional. Enter dollars to the left of the preprinted decimal point and cents to the right of it. Don’t round entries to whole dollars. Always show an amount for cents, even if it is zero. Leave blank any data field (except lines 1 and 12) with a value of zero. Enter negative amounts using a minus sign (if possible). Otherwise, use parentheses. Enter your name and EIN on all pages and attachments. Enter your name, EIN, “Form 941-SS,” and the tax year and quarter on all attachments. Staple multiple sheets in the upper left corner when filing. Complete all three pages. You must complete all three pages of Form 941-SS and sign on page 3. Failure to do so may delay processing of your return. Reconciling Forms 941-SS With Form W-3SS The IRS matches amounts reported on your four quarterly Forms 941-SS with Form W-2AS, W-2CM, W-2GU, or W-2VI amounts totaled on your yearly Form W-3SS, Transmittal of Wage and Tax Statements. If the amounts don't agree, you may be contacted by the IRS or the Social Security Administration (SSA). The following amounts are reconciled. Social security wages. Social security tips. Medicare wages and tips. Use Schedule D (Form 941) to explain certain wage, tax, and payment discrepancies between Forms 941-SS and Forms W-2AS, W-2CM, W-2GU, W-2VI, W-3SS, and W-2c, Corrected Wage and Tax Statement, that were caused by acquisitions, statutory mergers, or consolidations. For more information, see the Instructions for Schedule D (Form 941). Also see Rev. Proc. 2004-53 for more information. You can find Rev. Proc. 2004-53 on page 320 of I.R.B. 2004-34 at IRS.gov/irb/2004-34_IRB#RP-2004-53. Where Should You File? You're encouraged to file Form 941-SS electronically. Go to IRS.gov/EmploymentEfile for more information on electronic filing. If you file a paper return, where you file depends on whether you include a payment with Form 941-SS. PDSs can't deliver to P.O. boxes. You must use the U.S. Postal Service to mail an item to a P.O. box address. Go to IRS.gov/PDS for the current list of PDSs. For the IRS mailing address to use if you're using a PDS, go to IRS.gov/PDSstreetAddresses. Select the address on the webpage that is given for the Ogden Submission Processing Center. If you’re in . . . Without a payment . . . With a payment . . . American Samoa, Guam, CNMI, U.S. Virgin Islands Internal Revenue Service P.O. Box 409101 Ogden, UT 84409 Internal Revenue Service P.O. Box 932100 Louisville, KY 40293-2100 Special filing addresses for exempt organizations; federal, state, and local governmental entities; and Indian tribal governmental entities, regardless of location Department of the Treasury Internal Revenue Service Ogden, UT 84201-0005 Internal Revenue Service P.O. Box 932100 Louisville, KY 40293-2100 Your filing address may have changed from that used to file your employment tax return in prior years. Don't send Form 941-SS or any payments to the SSA. Depositing Your Taxes You must deposit all depository taxes electronically by EFT. For more information, see Federal tax deposits must be made by electronic funds transfer (EFT) under Reminders, earlier. Must You Deposit Your Taxes? You may have to deposit both the employer and employee social security taxes and Medicare taxes. If your total taxes after adjustments and nonrefundable credits (line 12) are less than $2,500 for the current quarter or the prior quarter, and you didn't incur a $100,000 next-day deposit obligation during the current quarter. You don't have to make a deposit. To avoid a penalty, you must pay any amount due in full with a timely filed return or you must deposit any amount you owe by the due date of the return. For more information on paying with a timely filed return, see the instructions for line 14, later. If you’re not sure your total tax liability for the current quarter will be less than $2,500 (and your liability for the prior quarter wasn't less than $2,500), make deposits using the semiweekly or monthly rules so you won't be subject to failure-to-deposit (FTD) penalties. If your total taxes after adjustments and nonrefundable credits (line 12) are $2,500 or more for the current quarter and the prior quarter. You must make deposits according to your deposit schedule. See section 8 of Pub. 80 for information about payments made under the accuracy of deposits rule and for rules about federal tax deposits. Reducing your deposits for the credit for qualified sick and family leave wages. Employers eligible to claim the credit for qualified sick and family leave wages paid this quarter of 2023 for leave taken after March 31, 2020, and before October 1, 2021, can reduce their deposits by the amount of their anticipated credit. Employers won’t be subject to an FTD penalty for reducing their deposits if certain conditions are met. See the instructions for line 11b and line 11d, later, for more information on these credits. For more information on reducing deposits, see Notice 2020-22, 2020-17 I.R.B. 664, available at IRS.gov/irb/2020-17_IRB#NOT-2020-22; and Notice 2021-24, 2021-18 I.R.B. 1122, available at IRS.gov/irb/2021-18_IRB#NOT-2021-24. See the instructions for line 16, later, for information on adjusting tax liabilities reported on line 16 or Schedule B (Form 941) for nonrefundable credits. When Must You Deposit Your Taxes? Determine if You’re a Monthly or Semiweekly Schedule Depositor for the Quarter The IRS uses two different sets of deposit rules to determine when businesses must deposit their social security and Medicare taxes. These schedules tell you when a deposit is due after you have a payday. Your deposit schedule isn't determined by how often you pay your employees. Your deposit schedule depends on the total tax liability you reported on Form 941-SS during the previous 4-quarter lookback period (July 1 of the second preceding calendar year through June 30 of the preceding calendar year). See section 8 of Pub. 80 for details. If you filed Form 944 in either 2021 or 2022, your lookback period is the 2021 calendar year. Before the beginning of each calendar year, determine which type of deposit schedule you must use. If you reported $50,000 or less in taxes during the lookback period, you’re a monthly schedule depositor. If you reported more than $50,000 of taxes during the lookback period, you’re a semiweekly schedule depositor. If you’re a monthly schedule depositor and accumulate a $100,000 tax liability on any day during the deposit period, you become a semiweekly schedule depositor on the next day and remain so for at least the rest of the calendar year and for the following calendar year. See $100,000 Next-Day Deposit Rule in section 8 of Pub. 80 for more information. The $100,000 tax liability threshold requiring a next-day deposit is determined before you consider any reduction of your liability for nonrefundable credits. For more information, including an example, see frequently asked question 17 at IRS.gov/ETD. What About Penalties and Interest? Avoiding Penalties and Interest You can avoid paying penalties and interest if you do all of the following. Deposit or pay your taxes when they are due, unless you meet the requirements discussed in Notice 2020-22 and Notice 2021-24. File your fully completed Form 941-SS on time. Report your tax liability accurately. Submit valid checks for tax payments. Furnish accurate Forms W-2AS, W-2CM, W-2GU, or W-2VI to employees. File Form W-3SS and Copy A of Forms W-2AS, W-2CM, W-2GU, or W-2VI with the SSA on time and accurately. Penalties and interest are charged on taxes paid late and returns filed late at a rate set by law. See section 8 of Pub. 80 for details. Use Form 843 to request abatement of assessed penalties or interest. Don't request abatement of assessed penalties or interest on Form 941-SS or Form 941-X. If you receive a notice about a penalty after you file this return, reply to the notice with an explanation and we will determine if you meet reasonable-cause criteria. Don't attach an explanation when you file your return. If federal income, social security, and Medicare taxes that must be withheld (that is, trust fund taxes) aren't withheld or aren't deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. The penalty is 100% of the unpaid trust fund tax. If these unpaid taxes can't be immediately collected from the employer or business, the trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, or paying over these taxes, and who acted willfully in not doing so. For more information, see section 8 of Pub. 80. The trust fund recovery penalty won’t apply to any amount of trust fund taxes an employer holds back in anticipation of any credits they are entitled to. Adjustment of Tax on Tips If, by the 10th of the month after the month you received an employee's report on tips, you don't have enough employee funds available to withhold the employee share of social security and Medicare taxes, you no longer have to collect it. Report the entire amount of these tips on line 5b (Taxable social security tips), line 5c (Taxable Medicare wages and tips), and, if the withholding threshold is met, line 5d (Taxable wages and tips subject to Additional Medicare Tax withholding). Include as a negative adjustment on line 9 the total uncollected employee share of the social security and Medicare taxes. Where Can You Obtain Forms? See Pub. 80 for information on ordering IRS forms. You may also be able to get some IRS forms at the addresses listed next. American Samoa Tax Office Executive Office Building, First Floor Pago Pago, AS 96799 CNMI CNMI Division of Revenue and Taxation Joeten Dandan Commercial Center Saipan, MP 96950 Guam Department of Revenue and Taxation Government of Guam 1240 Army Drive Barrigada, GU 96913 U.S. Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay, Ste 225 St. Thomas, VI 00802 Specific Instructions: Part 1: Answer These Questions for This Quarter 1. Number of Employees Who Received Wages, Tips, or Other Compensation Enter the number of employees on your payroll for the pay period including March 12, June 12, September 12, or December 12, for the quarter indicated at the top of the Form 941-SS. Don't include: Household employees, Employees in nonpay status for the pay period, Farm employees, Pensioners, or Active members of the U.S. Armed Forces. 4. If No Wages, Tips, and Other Compensation Are Subject to Social Security or Medicare Tax . . . If no wages, tips, and compensation are subject to social security or Medicare tax, check the box on line 4. If this question doesn't apply to you, leave the box blank. For more information about exempt wages, see section 12 of Pub. 80. For religious exemptions, see section 4 of Pub. 15-A. If you’re a governmental employer, wages you pay aren't automatically exempt from social security and Medicare taxes. Your employees may be covered by law or by a voluntary Section 218 Agreement with the SSA. For more information, see Pub. 963, Federal-State Reference Guide. For purposes of these instructions, all references to “sick pay” mean ordinary sick pay, not “qualified sick leave wages” that are reported on line 5a(i) for leave taken after March 31, 2020, and before April 1, 2021, or reported on line 5a for leave taken after March 31, 2021, and before October 1, 2021. 5a–5e. Taxable Social Security and Medicare Wages and Tips Qualified sick leave wages and qualified family leave wages paid this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021, are reported on lines 5a(i) and 5a(ii), respectively. Qualified sick leave wages and qualified family leave wages paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021, are reported on line 5a. 5a. Taxable social security wages. Enter the total wages, including qualified sick leave wages and qualified family leave wages paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021; sick pay; and taxable fringe benefits subject to social security taxes you paid to your employees during the quarter. Don't include the qualified sick leave wages paid this quarter of 2023 that are reported on line 5a(i) or qualified family leave wages paid this quarter of 2023 that are reported on line 5a(ii) for leave taken after March 31, 2020, and before April 1, 2021. For this purpose, sick pay includes payments made by an insurance company to your employees for which you received timely notice from the insurance company. See section 6 of Pub. 15-A for more information about sick pay reporting. See the instructions for line 8 for an adjustment that you may need to make on Form 941-SS for sick pay. Enter the amount before payroll deductions. Don't include tips on this line. For information on types of wages subject to social security taxes, see section 4 of Pub. 80. For 2023, the rate of social security tax on taxable wages, except for qualified sick leave wages and qualified family leave wages paid in 2023 for leave taken after March 31, 2020, and before April 1, 2021, is 6.2% (0.062) each for the employer and employee or 12.4% (0.124) for both. Stop paying social security tax on and entering an employee's wages on line 5a when the employee's taxable wages, including qualified sick leave wages paid in 2023 that are reported on line 5a(i), qualified family leave wages paid in 2023 that are reported on line 5a(ii), and tips, reach $160,200 for the year. However, continue to withhold Medicare taxes for the whole year on all wages, including qualified sick leave wages paid in 2023, qualified family leave wages paid in 2023, and tips, even when the social security wage base of $160,200 has been reached. For purposes of the credit for qualified sick and family leave wages, qualified sick leave and family leave wages are wages for social security and Medicare tax purposes, determined without regard to the exclusions from the definition of employment under sections 3121(b)(1)–(22), that an employer pays that otherwise meet the requirements of the Emergency Paid Sick Leave Act (EPSLA) or the Emergency Family and Medical Leave Expansion Act (Expanded FMLA), as enacted under the FFCRA and amended for purposes of the ARP. However, don't include any wages otherwise excluded under section 3121(b) when reporting qualified sick and family leave wages on lines 5a, 5a(i), 5a(ii), 5c, and, if applicable, 5d. See the instructions for line 11d for information about the credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021. line 5a (column 1) x 0.124 line 5a (column 2) EPSLA. Employers with fewer than 500 employees and, for leave taken after March 31, 2021, and before October 1, 2021, certain governmental employers without regard to number of employees (except for the federal government and its agencies and instrumentalities unless described in section 501(c)(1)) are entitled to a credit if they provide paid sick leave to employees that otherwise meets the requirements of the EPSLA. Under the EPSLA, as amended for purposes of the ARP, wages are qualified sick leave wages if paid to employees that are unable to work or telework before October 1, 2021, because the employee: Is subject to a federal, state (including U.S. territories), or local quarantine or isolation order related to COVID-19; Has been advised by a health care provider to self-quarantine due to concerns related to COVID-19; Is experiencing symptoms of COVID-19 and seeking a medical diagnosis; or, for leave taken after March 31, 2021, and before October 1, 2021, is seeking or awaiting the results of a diagnostic test for, or a medical diagnosis of, COVID-19 (and the employee has been exposed to COVID-19 or the employee's employer has requested such test or diagnosis), or the employee is obtaining immunizations related to COVID-19 or recovering from an injury, disability, illness, or condition related to such immunization; Is caring for an individual subject to an order described in (1) or who has been advised as described in (2); Is caring for a son or daughter because the school or place of care for that child has been closed, or the childcare provider for that child is unavailable, due to COVID-19 precautions; or Is experiencing any other substantially similar condition specified by the U.S. Department of Health and Human Services, which for leave taken after March 31, 2021, and before October 1, 2021, includes to accompany an individual to obtain immunization related to COVID-19, or to care for an individual who is recovering from any injury, disability, illness, or condition related to the immunization. Son or daughter. A son or daughter must generally have been under 18 years of age or incapable of self-care because of a mental or physical disability. A son or daughter includes a biological child, adopted child, stepchild, foster child, legal ward, or a child for whom the employee assumes parental status and carries out the obligations of a parent. Limits on qualified sick leave wages. The EPSLA, as amended for purposes of the ARP, provides different limitations for different circumstances under which qualified sick leave wages are paid. For paid sick leave qualifying under (1), (2), or (3) above, the amount of qualified sick leave wages is determined at the employee's regular rate of pay, but the wages may not exceed $511 for any day (or portion of a day) for which the individual is paid sick leave. For paid sick leave qualifying under (4), (5), or (6) above, the amount of qualified sick leave wages is determined at two-thirds the employee's regular rate of pay, but the wages may not exceed $200 for any day (or portion of a day) for which the individual is paid sick leave. The EPSLA also limits each individual to a maximum of up to 80 hours of paid sick leave in total for leave taken after March 31, 2020, and before April 1, 2021. The ARP resets this limit at 80 hours of paid sick leave for leave taken after March 31, 2021, and before October 1, 2021. Therefore, for leave taken after March 31, 2020, and before April 1, 2021, the maximum amount of paid sick leave wages can't exceed $5,110 for an employee for leave under (1), (2), or (3), and it can't exceed $2,000 for an employee for leave under (4), (5), or (6). These maximum amounts also reset and apply to leave taken after March 31, 2021, and before October 1, 2021. For more information about qualified sick leave wages, go to IRS.gov/PLC. Expanded FMLA. Employers with fewer than 500 employees and, for leave taken after March 31, 2021, and before October 1, 2021, certain governmental employers without regard to number of employees (except for the federal government and its agencies and instrumentalities unless described in section 501(c)(1)) are entitled to a credit under the FFCRA, as amended for purposes of the ARP, if they provide paid family leave to employees that otherwise meets the requirements of the Expanded FMLA. For leave taken after March 31, 2020, and before April 1, 2021, wages are qualified family leave wages if paid to an employee who has been employed for at least 30 calendar days when an employee is unable to work or telework due to the need to care for a son or daughter under 18 years of age or incapable of self-care because of a mental or physical disability because the school or place of care for that child has been closed, or the childcare provider for that child is unavailable, due to a public health emergency. See Son or daughter , earlier, for more information. For leave taken after March 31, 2021, and before October 1, 2021, the leave can be granted for any other reason provided by the EPSLA, as amended for purposes of the ARP. For leave taken after March 31, 2020, and before April 1, 2021, the first 10 days for which an employee takes leave may be unpaid. During this period, employees may use other forms of paid leave, such as qualified sick leave, accrued sick leave, annual leave, or other paid time off. After an employee takes leave for 10 days, the employer must provide the employee paid leave (that is, qualified family leave wages) for up to 10 weeks. For leave taken after March 31, 2021, and before October 1, 2021, the 10-day rule discussed above doesn't apply and the paid leave can be provided for up to 12 weeks. Rate of pay and limit on wages. The rate of pay must be at least two-thirds of the employee’s regular rate of pay (as determined under the Fair Labor Standards Act of 1938), multiplied by the number of hours the employee would have otherwise been scheduled to work. For leave taken after March 31, 2020, and before April 1, 2021, the total qualified family leave wages can’t exceed $200 per day or $10,000 in the aggregate per employee. For leave taken after March 31, 2021, and before October 1, 2021, the limit resets and the total qualified family leave wages can't exceed $200 per day or $12,000 in the aggregate per employee. For more information about qualified family leave wages, go to IRS.gov/PLC. 5a(i). Qualified sick leave wages. Enter the qualified taxable (subject to social security tax) sick leave wages you paid this quarter of 2023 to your employees for leave taken after March 31, 2020, and before April 1, 2021. Qualified sick leave wages for leave taken after March 31, 2020, and 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 $160,200 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. For purposes of the credit for qualified sick and family leave wages, qualified sick leave wages are wages for social security and Medicare tax purposes, determined without regard to the exclusions from the definition of employment under sections 3121(b)(1)–(22), that an employer pays that otherwise meet the requirements of the EPSLA, as enacted under the FFCRA and amended by the COVID-related Tax Relief Act of 2020. However, don't include any wages otherwise excluded under section 3121(b) when reporting qualified sick leave wages on lines 5a(i), 5c, and, if applicable, 5d. See the instructions for line 11b for information about the credit for qualified sick and family leave wages for leave taken after March 31, 2020, and before April 1, 2021. line 5a(i) (column 1) x 0.062 line 5a(i) (column 2) 5a(ii). Qualified family leave wages. Enter the qualified taxable (subject to social security tax) family leave wages you paid this quarter of 2023 to your employees for leave taken after March 31, 2020, and before April 1, 2021. Qualified family leave wages for leave taken after March 31, 2020, and 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 $160,200 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. For purposes of the credit for qualified sick and family leave wages, qualified family leave wages are wages for social security and Medicare tax purposes, determined without regard to the exclusions from the definition of employment under sections 3121(b)(1)–(22), that an employer pays that otherwise meet the requirements of the Expanded FMLA, as enacted under the FFCRA and amended by the COVID-related Tax Relief Act of 2020. However, don't include any wages otherwise excluded under section 3121(b) when reporting qualified family leave wages on lines 5a(ii), 5c, and, if applicable, 5d. See the instructions for line 11b for information about the credit for qualified sick and family leave wages for leave taken after March 31, 2020, and before April 1, 2021. line 5a(ii) (column 1) x 0.062 line 5a(ii) (column 2) 5b. Taxable social security tips. Enter all tips your employees reported to you during the quarter until the total of the tips and taxable wages, including wages reported on line 5a, qualified sick leave wages reported on line 5a(i), and qualified family leave wages reported on line 5a(ii), for an employee reach $160,200 for the year. Include all tips your employee reported to you even if you were unable to withhold the employee tax of 6.2%. You will reduce your total taxes by the amount of any uncollected employee share of social security and Medicare taxes on tips later on line 9; see Current quarter's adjustments for tips and group-term life insurance , later. Don't include service charges on line 5b. For details about the difference between tips and service charges, see Rev. Rul. 2012-18, 2012-26 I.R.B. 1032, available at IRS.gov/irb/2012-26_IRB#RR-2012-18. Your employee must report cash tips to you by the 10th day of the month after the month the tips are received. Cash tips include tips paid by cash, check, debit card, and credit card. The report should include charged tips (for example, credit and debit card charges) you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. Both directly and indirectly tipped employees must report tips to you. No report is required for months when tips are less than $20. Employees may use Form 4070 (available only in Pub. 1244) or submit a written statement or electronic tip record. Don't include allocated tips on this line. Instead, report them on Form 8027. Allocated tips aren't reportable on Form 941-SS and aren't subject to withholding of social security or Medicare taxes. line 5b (column 1) x 0.124 line 5b (column 2) 5c. Taxable Medicare wages & tips. Enter all wages, including qualified sick leave wages paid this quarter of 2023, and qualified family leave wages paid this quarter of 2023; tips; sick pay; and taxable fringe benefits that are subject to Medicare tax. Unlike social security wages, there is no limit on the amount of wages subject to Medicare tax. The rate of Medicare tax is 1.45% (0.0145) each for the employer and employee or 2.9% (0.029) for both. Include all tips your employees reported during the quarter, even if you were unable to withhold the employee tax of 1.45%. line 5c (column 1) x 0.029 line 5c (column 2) For more information on tips, see section 5 of Pub. 80. See the instructions for line 8 for an adjustment that you may need to make on Form 941-SS for sick pay. 5d. Taxable wages & tips subject to Additional Medicare Tax withholding. Enter all wages, including qualified sick leave wages paid this quarter of 2023, and qualified family leave wages paid this quarter of 2023; tips; sick pay; and taxable fringe benefits that are subject to Additional Medicare Tax withholding. You’re required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Additional Medicare Tax is only imposed on the employee. There is no employer share of Additional Medicare Tax. All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Employment and Payments, in section 12 of Pub. 80. For more information on Additional Medicare Tax, go to IRS.gov/ADMTfaqs. See the instructions for line 8 for an adjustment that you may need to make on Form 941-SS for sick pay. Once wages and tips exceed the $200,000 withholding threshold, include all tips your employees reported during the quarter, even if you were unable to withhold the employee tax of 0.9%. line 5d (column 1) x 0.009 line 5d (column 2) 5e. Total social security and Medicare taxes. Add the column 2 amounts on lines 5a–5d. Enter the result on line 5e. 5f. Section 3121(q) Notice and Demand—Tax Due on Unreported Tips 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. Deposit the tax within the time period required under your deposit schedule to avoid any possible deposit penalty. The tax is treated as accumulated by the employer on the “Date of Notice and Demand” as printed on the Section 3121(q) Notice and Demand. The employer must include this amount on the appropriate line of the record of federal tax liability (Part 2 of Form 941-SS for a monthly schedule depositor or Schedule B (Form 941) for a semiweekly schedule depositor). 6. Total Taxes Before Adjustments Add the total social security and Medicare taxes before adjustments (line 5e) and any tax due under a Section 3121(q) Notice and Demand (line 5f). Enter the result on line 6. 7–9. Tax Adjustments Enter tax amounts on lines 7–9 that result from current quarter adjustments. Use a minus sign (if possible) to show an adjustment that decreases the total taxes shown on line 6 instead of parentheses. Doing so enhances the accuracy of our scanning software. For example, enter “-10.59” instead of “(10.59).” However, if your software only allows for parentheses in entering negative amounts, you may use them. Current quarter's adjustments. In certain cases, you must adjust the amounts you entered as social security and Medicare taxes in column 2 of lines 5a–5d to figure your correct tax liability for this quarter's Form 941-SS. See section 9 of Pub. 80. 7. Current quarter's adjustment for fractions of cents. Enter adjustments for fractions of cents (due to rounding) relating to the employee share of social security and Medicare taxes withheld. The employee share of amounts shown in column 2 of lines 5a–5d may differ slightly from amounts actually withheld from employees' pay due to the rounding of social security and Medicare taxes based on statutory rates. This adjustment may be a positive or negative adjustment. 8. Current quarter's adjustment for sick pay. If your third-party payer of sick pay that isn't your agent (for example, an insurance company) transfers the liability for the employer share of the social security and Medicare taxes to you, enter a negative adjustment on line 8 for the employee share of social security and Medicare taxes that were withheld and deposited by your third-party sick pay payer on the sick pay. If you’re the third-party sick pay payer and you transferred the liability for the employer share of the social security and Medicare taxes to the employer, enter a negative adjustment on line 8 for any employer share of these taxes required to be paid by the employer. The sick pay should be included on line 5a, line 5c, and, if the withholding threshold is met, line 5d. No adjustment is reported on line 8 for sick pay that is paid through a third party as an employer’s agent. An employer’s agent bears no insurance risk and is reimbursed on a cost-plus-fee basis for payment of sick pay and similar amounts. If an employer uses an agent to pay sick pay, the employer reports the wages on line 5a, line 5c, and, if the withholding threshold is met, line 5d, unless the employer has an agency agreement with the third-party payer that requires the third-party payer to do the collecting, reporting, and/or paying or depositing employment taxes on the sick pay. See section 6 of Pub. 15-A for more information about sick pay reporting. 9. Current quarter's adjustments for tips and group-term life insurance. Enter a negative adjustment for: Any uncollected employee share of social security and Medicare taxes on tips, and The uncollected employee share of social security and Medicare taxes on group-term life insurance premiums paid for former employees. See the General Instructions for Forms W-2 and W-3 for information on how to report the uncollected employee share of social security and Medicare taxes on tips and group-term life insurance on Form W-2. Prior quarter's adjustments. If you need to correct any adjustment reported on a previously filed Form 941-SS, complete and file Form 941-X. Form 941-X is an adjusted return or claim for refund and is filed separately from Form 941-SS. See section 9 of Pub. 80. 10. Total Taxes After Adjustments Combine the amounts shown on lines 6–9 and enter the result on line 10. 11a. Qualified Small Business Payroll Tax Credit for Increasing Research Activities Enter the amount of the credit from Form 8974, line 12 or, if applicable, line 17. If you enter an amount on line 11a, you must attach Form 8974. Form 941-SS and these instructions use the terms “nonrefundable” and “refundable” when discussing credits. The term “nonrefundable” means the portion of the credit which is limited by law to the amount of certain taxes. The term “refundable” means the portion of the credit which is in excess of those taxes. 11b. Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021 Complete line 11b only if qualified sick leave wages and/or qualified family leave wages were paid this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021. Certain private employers with fewer than 500 employees that provide paid sick leave under the EPSLA and/or provide paid family leave under the Expanded FMLA are eligible to claim the credit for qualified sick and family leave wages for leave taken after March 31, 2020, and before April 1, 2021. For purposes of this credit, qualified sick leave wages and qualified family leave wages are wages for social security and Medicare tax purposes, determined without regard to the exclusions from the definition of employment under sections 3121(b)(1)–(22), that an employer pays that otherwise meet the requirements of the EPSLA or Expanded FMLA. 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. The nonrefundable portion of the credit is limited to the employer share of social security tax reported on Form 941-SS, lines 5a and 5b, after that share is first reduced by any credit claimed against the employer share of social security tax on Form 8974 for the qualified small business payroll tax credit for increasing research activities, any credit to be claimed on Form 5884-C for the work opportunity credit for qualified tax-exempt organizations hiring qualified veterans, and/or any credit to be claimed on Form 5884-D for the disaster credit for qualified tax-exempt organizations. If you're a third-party payer of sick pay that isn't an agent (for example, an insurance company) and you're claiming the credit for qualified sick and family leave wages for amounts paid to your own employees, the amount of the employer share of social security tax reported on line 5a must be reduced by any adjustment you make on line 8 for the employer share of social security tax transferred to your client. If you received a Section 3121(q) Notice and Demand for tax due on unreported tips (Letter 3263 or Letter 4520) during the quarter, you report the amount for the employer share of social security tax and Medicare tax on Form 941-SS, line 5f. Letter 3263 or Letter 4520 includes an attachment that shows the employer share of social security tax. This amount of the employer share of social security tax can also be reduced by the nonrefundable portion of the credit. See Worksheet 1 to figure your credit. Any credit in excess of the remaining amount of the employer share of social security tax is refundable and reported on Form 941-SS, line 13c. For more information on the credit for qualified sick and family leave wages, go to IRS.gov/PLC. Qualified health plan expenses allocable to qualified sick leave and family leave wages. The credit for qualified sick leave wages and qualified family leave wages is increased to cover the qualified health plan expenses that are properly allocable to the qualified leave wages for which the credit is allowed. These qualified health plan expenses are amounts paid or incurred by the employer to provide and maintain a group health plan but only to the extent such amounts are excluded from the employees’ income as coverage under an accident or health plan. The amount of qualified health plan expenses generally includes both the portion of the cost paid by the employer and the portion of the cost paid by the employee with pre-tax salary reduction contributions. However, qualified health plan expenses don’t include amounts that the employee paid for with after-tax contributions. For more information, go to IRS.gov/PLC. You must include the full amount (both the nonrefundable and refundable portions) of the credit for qualified sick and family leave wages in your gross income for the tax year that includes the last day of any calendar quarter in which a credit is allowed. 11d. Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021 Complete line 11d only if qualified sick leave wages and/or qualified family leave wages were paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021. Employers with fewer than 500 employees and certain governmental employers without regard to number of employees (except for the federal government and its agencies and instrumentalities unless described in section 501(c)(1)) are entitled to a credit if they provide paid sick leave to employees that otherwise meets the requirements of the EPSLA, as amended for purposes of the ARP, and/or provide paid family leave to employees that otherwise meets the requirements under the Expanded FMLA, as amended for purposes of the ARP, for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021. For purposes of this credit, qualified sick leave wages and qualified family leave wages are wages for social security and Medicare tax purposes, determined without regard to the exclusions from the definition of employment under sections 3121(b)(1)–(22), that an employer pays that otherwise meet the requirements of the EPSLA or Expanded FMLA, as enacted under the FFCRA and amended for purposes of the ARP. Enter the nonrefundable portion of the credit for qualified sick and family leave wages from Worksheet 2, Step 2, line 2p. The credit for qualified sick and family leave wages consists of the: Qualified sick leave wages and/or qualified family leave wages; Qualified health plan expenses allocable to qualified sick leave and family leave wages; Collectively bargained defined benefit pension plan contributions, subject to the qualified leave wage limitations, allocable to the qualified sick and family leave wages; Collectively bargained apprenticeship program contributions, subject to the qualified leave wage limitations, allocable to the qualified sick and family leave wages; and Employer share of social security and Medicare tax allocable to the qualified sick and family leave wages. The nonrefundable portion of the credit is limited to the employer share of Medicare tax reported on Form 941-SS, line 5c, after that share is first reduced by any credit claimed against the employer share of Medicare tax on Form 8974 for the qualified small business payroll tax credit for increasing research activities. You can’t claim the credit for leave taken after March 31, 2021, and before October 1, 2021, if, during the applicable quarter in which the qualified sick or family leave wages were paid, you made qualified sick or family leave wages available in a manner that discriminates in favor of highly compensated employees, full-time employees, or employees on the basis of employment tenure. See Highly compensated employee , later, for the definition. For leave taken after March 31, 2021, and before October 1, 2021, the credit for qualified sick and family leave wages is reduced by the amount of the credit allowed under section 41 (for the credit for increasing research activities) with respect to wages taken into account for determining the credit for qualified sick and family leave wages; and any wages taken into account in determining the credit for qualified sick and family leave wages can't be taken into account as wages for purposes of the credits under sections 45A, 45P, 45S, and 51. For leave taken after March 31, 2021, and before October 1, 2021, qualified wages also don't include wages that were used as payroll costs in connection with a Shuttered Venue Operator Grant under section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act; or a restaurant revitalization grant under section 5003 of the ARP. Employers can receive both a Small Business Interruption Loan under the Paycheck Protection Program (PPP) and the credit for qualified sick and family leave wages; however, employers can't receive both loan forgiveness and a credit for the same wages. The same wages can’t be treated as both qualified sick leave wages and qualified family leave wages. If you're a third-party payer of sick pay that isn't an agent (for example, an insurance company) and you're claiming the credit for qualified sick and family leave wages for amounts paid to your own employees, the amount of the employer share of Medicare tax reported on line 5c must be reduced by any adjustment you make on line 8 for the employer share of Medicare tax transferred to your client. If you received a Section 3121(q) Notice and Demand for tax due on unreported tips (Letter 3263 or Letter 4520) during the quarter, you report the amount for the employer share of social security tax and Medicare tax on Form 941-SS, line 5f. Letter 3263 or Letter 4520 includes an attachment that shows the employer share of Medicare tax. This amount of the employer share of Medicare tax can also be reduced by the nonrefundable portion of the credit. See Worksheet 2 to figure your credit. Any credit in excess of the remaining amount of the employer share of Medicare tax is refundable and reported on Form 941-SS, line 13e. For more information on the credit for qualified sick and family leave wages, go to IRS.gov/PLC. Qualified health plan expenses allocable to qualified sick leave and family leave wages. The credit for qualified sick leave wages and qualified family leave wages is increased to cover the qualified health plan expenses that are properly allocable to the qualified leave wages for which the credit is allowed. These qualified health plan expenses are amounts paid or incurred by the employer to provide and maintain a group health plan but only to the extent such amounts are excluded from the employees' income as coverage under an accident or health plan. The amount of qualified health plan expenses generally includes both the portion of the cost paid by the employer and the portion of the cost paid by the employee with pre-tax salary reduction contributions. However, qualified health plan expenses don't include amounts that the employee paid for with after-tax contributions. For more information, go to IRS.gov/PLC. Collectively bargained defined benefit pension plan contributions. For purposes of qualified sick and family leave wages, collectively bargained defined benefit pension plan contributions are contributions for a calendar quarter that are: Paid or incurred by an employer on behalf of its employees to a defined benefit plan, as defined in section 414(j), which meets the requirements of section 401(a); Made based on a pension contribution rate; and Required to be made under the terms of a collective bargaining agreement in effect for the quarter. Pension contribution rate. The pension contribution rate is the contribution rate that the employer is obligated to pay under the terms of a collective bargaining agreement to a defined benefit plan, as the rate is applied to contribution base units, as defined by section 4001(a)(11) of the Employee Retirement Income Security Act of 1974 (ERISA). Allocation rules. The amount of collectively bargained defined benefit pension plan contributions allocated to qualified sick leave wages and/or qualified family leave wages in a quarter is the pension contribution rate (expressed as an hourly rate) multiplied by the number of hours qualified sick leave wages and/or qualified family leave wages were provided to employees covered under the collective bargaining agreement during the quarter. Collectively bargained apprenticeship program contributions. For purposes of qualified sick and family leave wages, collectively bargained apprenticeship program contributions are contributions for a calendar quarter that are: Paid or incurred by an employer on behalf of its employees to a registered apprenticeship program, which is an apprenticeship registered under the National Apprenticeship Act of August 16, 1937, and meets the standards of Federal Regulations under subpart A of Part 29 and Part 30 of title 29; Made based on an apprenticeship program contribution rate; and Required to be made under the terms of a collective bargaining agreement in effect for the quarter. Apprenticeship program contribution rate. The apprenticeship program contribution rate is the contribution rate that the employer is obligated to pay under the terms of a collective bargaining agreement for benefits under a registered apprenticeship program, as the rate is applied to contribution base units, as defined by section 4001(a)(11) of ERISA. Allocation rules. The amount of collectively bargained apprenticeship program contributions allocated to qualified sick leave wages and/or qualified family leave wages in a quarter is the apprenticeship program contribution rate (expressed as an hourly rate) multiplied by the number of hours qualified sick leave wages and/or qualified family leave wages were provided to employees covered under the collective bargaining agreement during the quarter. Highly compensated employee. A highly compensated employee is an employee who meets either of the following tests. The employee was a 5% owner at any time during the year or the preceding year. The employee received more than $135,000 in pay for the preceding year. You can choose to ignore test (2) if the employee wasn’t also in the top 20% of employees when ranked by pay for the preceding year. 11g. Total Nonrefundable Credits Add lines 11a, 11b, and 11d. Enter the total on line 11g. 12. Total Taxes After Adjustments and Nonrefundable Credits Subtract line 11g from line 10 and enter the result on line 12. The amount entered on line 12 can't be less than zero. If line 12 is less than $2,500 or line 12 on the prior quarterly return was less than $2,500, and you didn't incur a $100,000 next-day deposit obligation during the current quarter. You may pay the amount with Form 941-SS or you may deposit the amount. To avoid a penalty, you must pay any amount you owe in full with a timely filed return or you must deposit any amount you owe before the due date of the return. For more information on paying with a timely filed return, see the instructions for line 14, later. If line 12 is $2,500 or more and line 12 on the prior quarterly return was $2,500 or more, or if you incurred a $100,000 next-day deposit obligation during the current quarter. You must make required deposits according to your deposit schedule. See Notice 2020-22 and Notice 2021-24 for information on reducing deposits for certain credits. The amount shown on line 12 must equal the “Total liability for quarter” shown on line 16 or the “Total liability for the quarter” shown on Schedule B (Form 941). For more information, see the line 16 instructions, later. For more information and rules about federal tax deposits, see Depositing Your Taxes, earlier, and section 8 of Pub. 80. If you’re a semiweekly schedule depositor, you must complete Schedule B (Form 941). If you fail to complete and submit Schedule B (Form 941), the IRS may assess deposit penalties based on available information. 13a. Total Deposits for This Quarter 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, 944-X, or 944-X (SP) in the current quarter. Don't include any amount that you didn't deposit because you reduced your deposits in anticipation of the credit for qualified sick and family leave wages, as discussed in Notice 2020-22 and Notice 2021-24. 13c. Refundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021 Complete line 13c only if qualified sick leave wages and/or qualified family leave wages were paid this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021. Certain private employers with fewer than 500 employees that provide paid sick leave under the EPSLA and/or provide paid family leave under the Expanded FMLA are eligible to claim the credit for qualified sick and family leave wages. Enter the refundable portion of the credit for qualified sick and family leave wages from Worksheet 1, Step 2, line 2k. 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. The refundable portion of the credit is allowed after the employer share of social security tax is reduced to zero by nonrefundable credits that are applied against the employer share of social security tax. 13e. Refundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021 Complete line 13e only if qualified sick leave wages and/or qualified family leave wages were paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021. Employers with fewer than 500 employees and certain governmental employers without regard to number of employees (except for the federal government and its agencies and instrumentalities unless described in section 501(c)(1)) are entitled to a credit if they provide paid sick leave to employees that otherwise meets the requirements of the EPSLA, as amended for purposes of the ARP, and/or provide paid family leave to employees that otherwise meets the requirements under the Expanded FMLA, as amended for purposes of the ARP, for leave taken after March 31, 2021, and before October 1, 2021. Enter the refundable portion of the credit for qualified sick and family leave wages from Worksheet 2, Step 2, line 2q. The refundable portion of the credit is allowed after the employer share of Medicare tax is reduced to zero by nonrefundable credits that are applied against the employer share of Medicare tax. 13g. Total Deposits and Refundable Credits Add lines 13a, 13c, and 13e. Enter the total on line 13g. 14. Balance Due If line 12 is more than line 13g, enter the difference on line 14. Otherwise, see the instructions for line 15, later. Never make an entry on both lines 14 and 15. You don't have to pay if line 14 is under $1. Generally, you should have a balance due only if your total taxes after adjustments and nonrefundable credits (line 12) for the current quarter or prior quarter are less than $2,500, and you didn't incur a $100,000 next-day deposit obligation during the current quarter. However, see section 8 of Pub. 80 for information about payments made under the accuracy of deposits rule. If you were required to make federal tax deposits, pay the amount shown on line 14 by EFT. If you weren't required to make federal tax deposits (see Must You Deposit Your Taxes , earlier) or you're a monthly schedule depositor making a payment under the accuracy of deposits rule, you may pay the amount shown on line 14 by EFT, credit card, debit card, check, money order, or EFW. For more information on electronic payment options, go to IRS.gov/Payments. If you pay by EFT, credit card, or debit card, file your return using the Without a payment address under Where Should You File, earlier, and don't file Form 941-V(SS), Payment Voucher. If you pay by check or money order, make it payable to “United States Treasury.” Enter your EIN, “Form 941-SS,” and the tax period (“1st Quarter 2023,” “2nd Quarter 2023,” “3rd Quarter 2023,” or “4th Quarter 2023”) on your check or money order. Complete Form 941-V(SS) and enclose it with Form 941-SS. If line 12 is $2,500 or more on both your prior and current quarter Form 941-SS, and you’ve deposited all taxes when due, the balance due on line 14 should be zero. If you’re required to make deposits and instead pay the taxes with Form 941-SS, you may be subject to a penalty. See Must You Deposit Your Taxes, earlier. What if you can't pay in full? If you can't pay the full amount of tax you owe, you can apply for an installment agreement online. You can apply for an installment agreement online if: You can't pay the full amount shown on line 14, The total amount you owe is $25,000 or less, and You can pay the liability in full in 24 months. To apply using the Online Payment Agreement Application, go to IRS.gov/OPA. Under an installment agreement, you can pay what you owe in monthly installments. There are certain conditions you must meet to enter into and maintain an installment agreement, such as paying the liability within 24 months, and making all required deposits and timely filing tax returns during the length of the agreement. If your installment agreement is accepted, you will be charged a fee and you will be subject to penalties and interest on the amount of tax not paid by the due date of the return. 15. Overpayment If line 13g is more than line 12, enter the difference on line 15. Never make an entry on both lines 14 and 15. If you deposited more than the correct amount for the quarter, you can choose to have the IRS either refund the overpayment or apply it to your next return. Check only one box on line 15. If you don't check either box or if you check both boxes, we will generally apply the overpayment to your next return. Regardless of any boxes you check or don’t check on line 15, we may apply your overpayment to any past due tax account that is shown in our records under your EIN. If line 15 is under $1, we will send a refund or apply it to your next return only if you ask us in writing to do so. Part 2: Tell Us About Your Deposit Schedule and Tax Liability for This Quarter 16. Tax Liability for the Quarter Check one of the boxes on line 16. Follow the instructions for each box to determine if you need to enter your monthly tax liability on Form 941-SS or your daily tax liability on Schedule B (Form 941). De minimis exception. If line 12 is less than $2,500 or line 12 on the prior quarterly return was less than $2,500, and you didn't incur a $100,000 next-day deposit obligation during the current quarter, check the first box on line 16 and go to Part 3. If you meet the de minimis exception based on the prior quarter and line 12 for the current quarter is $100,000 or more, you must provide a record of your federal tax liability. If you’re a monthly schedule depositor, complete the deposit schedule on line 16. If you’re a semiweekly schedule depositor, attach Schedule B (Form 941). Monthly schedule depositor. If you reported $50,000 or less in taxes during the lookback period, you’re a monthly schedule depositor unless the $100,000 Next-Day Deposit Rule discussed in section 8 of Pub. 80 applies. Check the second box on line 16 and enter your tax liability for each month in the quarter. Enter your tax liabilities in the month that corresponds to the dates you paid wages to your employees, not the date payroll liabilities were accrued or deposits were made. Add the amounts for each month. Enter the result in the “Total liability for quarter” box. Note that your total tax liability for the quarter must equal your total taxes shown on line 12. If it doesn't, your tax deposits and payments may not be counted as timely. Don't reduce your total liability reported on line 16 by the refundable portion of the credit for qualified sick and family leave wages. Don't change your tax liability on line 16 by adjustments reported on any Forms 941-X. You’re a monthly schedule depositor for the calendar year if the amount of your Form 941-SS taxes reported for the lookback period is $50,000 or less. The lookback period is the 4 consecutive quarters ending on June 30 of the prior year. For 2023, the lookback period begins July 1, 2021, and ends June 30, 2022. For details on the deposit rules, see section 8 of Pub. 80. If you filed Form 944 in either 2021 or 2022, your lookback period is the 2021 calendar year. The amounts entered on line 16 are a summary of your monthly tax liability, not a summary of deposits you made. If you don't properly report your liabilities when required or if you’re a semiweekly schedule depositor and enter your liabilities on line 16 instead of on Schedule B (Form 941), you may be assessed an “averaged” FTD penalty. See Deposit Penalties in section 8 of Pub. 80 for more information. Reporting adjustments from lines 7–9 on line 16. If your net adjustment during a month is negative and it exceeds your total tax liability for the month, don't enter a negative amount for the month. Instead, enter "-0-" for the month and carry over the unused portion of the adjustment to the next month. Semiweekly schedule depositor. If you reported more than $50,000 of taxes for the lookback period, you’re a semiweekly schedule depositor. Check the third box on line 16. You must complete Schedule B (Form 941) and submit it with your Form 941-SS. Don't file Schedule B (Form 941) with your Form 941-SS if you’re a monthly schedule depositor. Don't change your tax liability on Schedule B (Form 941) by adjustments reported on any Forms 941-X. Adjusting tax liability for nonrefundable credits claimed on lines 11a, 11b, and 11d. Monthly schedule depositors and semiweekly schedule depositors must account for nonrefundable credits claimed on lines 11a, 11b, and 11d when reporting their tax liabilities on line 16 or Schedule B (Form 941). The total tax liability for the quarter must equal the amount reported on line 12. Failure to account for the nonrefundable credits on line 16 or Schedule B (Form 941) may cause line 16 or Schedule B (Form 941) to report more than the total tax liability reported on line 12. Don't reduce your monthly tax liability reported on line 16 or your daily tax liability reported on Schedule B (Form 941) below zero. Qualified small business payroll tax credit for increasing research activities (line 11a). Beginning with the first quarter of 2023, the qualified small business payroll tax credit for increasing research activities is first used to reduce the employer share of social security tax (up to $250,000) for the quarter and any remaining credit is then used to reduce the employer share of Medicare tax for the quarter until it reaches zero. In completing line 16 or Schedule B (Form 941), you take into account the payroll tax credit against the liability for the employer share of social security tax starting with the first payroll payment of the quarter that includes payments of wages subject to social security tax to your employees until you use up to $250,000 of credit against the employer share of social security tax and you then take into account any remaining payroll tax credit against the liability for the employer share of Medicare tax starting with the first payroll payment of the quarter that includes payments of wages subject to Medicare tax to employees. Consistent with the entries on line 16 or Schedule B (Form 941), the payroll tax credit should be taken into account in making deposits of employment tax. If any payroll tax credit is remaining at the end of the quarter that hasn’t been used completely because it exceeds $250,000 of the employer share of social security tax and the employer share of Medicare tax for the quarter, the excess credit may be carried forward to the succeeding quarter and allowed as a payroll tax credit for the succeeding quarter. The payroll tax credit may not be taken as a credit against income tax withholding, the employee share of social security tax, or the employee share of Medicare tax. Also, the remaining payroll tax credit may not be carried back and taken as a credit against wages paid from preceding quarters. Example. Rose Co. is an employer with a calendar tax year that filed its timely 2022 income tax return on April 18, 2023. Rose Co. elected to take the qualified small business payroll tax credit for increasing research activities on Form 6765. The third quarter of 2023 is the first quarter that begins after Rose Co. filed the income tax return making the payroll tax credit election. Therefore, the payroll tax credit applies against Rose Co.'s share of social security tax (up to $250,000) and Medicare tax on wages paid to employees in the third quarter of 2023. Rose Co. is a semiweekly schedule depositor. Rose Co. completes Schedule B (Form 941) by reducing the amount of liability entered for the first payroll payment in the third quarter of 2023 that includes wages subject to social security tax by the lesser of (1) its share of social security tax (up to $250,000) on the wages, or (2) the available payroll tax credit. If the payroll tax credit elected is more than Rose Co.'s share of social security tax on the first payroll payment of the quarter, the excess payroll tax credit would be carried forward to succeeding payroll payments in the third quarter until it is used against up to $250,000 of Rose Co.'s share of social security tax for the quarter. If the amount of the payroll tax credit exceeds Rose Co.'s share of social security tax (up to $250,000) on wages paid to its employees in the third quarter, any remaining credit is used against Rose Co.'s share of Medicare tax on the first payroll payment of the quarter and then the excess payroll tax credit would be carried forward to succeeding payroll payments in the third quarter until it is used against Rose Co.'s share of Medicare tax for the quarter. If Rose Co. still has credit remaining after reducing its share of social security tax (up to $250,000) and Medicare tax for the third quarter, the remainder would be treated as a payroll tax credit against its share of social security tax (up to $250,000) and Medicare tax on wages paid in the fourth quarter. If the amount of the payroll tax credit remaining exceeded Rose Co.'s share of social security tax (up to $250,000) and Medicare tax on wages paid in the fourth quarter, it could be carried forward and treated as a payroll tax credit for the first quarter of 2024. Nonrefundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2020, and before April 1, 2021 (line 11b). The nonrefundable portion of the credit for qualified sick and family leave wages paid this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021, is limited to the employer share of social security tax on wages paid in the quarter that is remaining after that share is first reduced by any credit claimed against the employer share of social security tax on Form 8974, line 12, for the qualified small business payroll tax credit for increasing research activities; any credit to be claimed on Form 5884-C, line 11, for the work opportunity credit for qualified tax-exempt organizations hiring qualified veterans; and/or any credit to be claimed on Form 5884-D for the disaster credit for qualified tax-exempt organizations. In completing line 16 or Schedule B (Form 941), you take into account the entire quarter's nonrefundable portion of the credit for qualified sick and family leave wages against the liability for the first payroll payment of the quarter, but not below zero. Then reduce the liability for each successive payroll payment in the quarter until the nonrefundable portion of the credit is used. Any credit for qualified sick and family leave wages paid this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021, that is remaining at the end of the quarter because it exceeds the employer share of social security tax for the quarter is claimed on line 13c as a refundable credit. The refundable portion of the credit doesn’t reduce the liability reported on line 16 or Schedule B (Form 941). Example. Maple Co. is a semiweekly schedule depositor that pays employees every other Friday. In the first quarter of 2023, Maple Co. had pay dates of January 6, January 20, February 3, February 17, March 3, March 17, and March 31. Maple Co. paid qualified sick and family leave wages on January 6 and January 20 for leave taken after March 31, 2020, and before April 1, 2021. The nonrefundable portion of the credit for qualified sick and family leave wages for the quarter is $10,000. On Schedule B (Form 941), Maple Co. will use the $10,000 to reduce the liability for the January 6 pay date, but not below zero. If any nonrefundable portion of the credit remains, Maple Co. applies it to the liability for the January 20 pay date, then the February 3 pay date, and so forth until the entire $10,000 is used. Nonrefundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021 (line 11d). The nonrefundable portion of the credit for qualified sick and family leave wages paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021, is limited to the employer share of Medicare tax on wages paid in the quarter that is remaining after that share is first reduced by any credit claimed against the employer share of Medicare tax on Form 8974, line 16, for the qualified small business payroll tax credit for increasing research activities. In completing line 16 or Schedule B (Form 941), you take into account the entire quarter's nonrefundable portion of the credit for qualified sick and family leave wages paid this quarter of 2023 against the liability for the first payroll payment of the quarter, but not below zero. Then reduce the liability for each successive payroll payment in the quarter until the nonrefundable portion of the credit is used. Any credit for qualified sick and family leave wages paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021, that is remaining at the end of the quarter because it exceeds the employer share of Medicare tax for the quarter is claimed on line 13e as a refundable credit. The refundable portion of the credit doesn’t reduce the liability reported on line 16 or Schedule B (Form 941). You may reduce your deposits by the amount of the nonrefundable and refundable portions of the credit for qualified sick and family leave wages, as discussed earlier under Reducing your deposits for the credit for qualified sick and family leave wages. Part 3: Tell Us About Your Business In Part 3, answer only those questions that apply to your business. If the questions don't apply, leave them blank and go to Part 4. 17. If Your Business Has Closed . . . If you go out of business or stop paying wages, you must file a final return. To tell the IRS that a particular Form 941-SS is your final return, check the box on line 17 and enter the final date you paid wages in the space provided. For additional filing requirements, including information about attaching a statement to your final return, see If Your Business Has Closed, earlier. 18. If You’re a Seasonal Employer . . . If you hire employees seasonally—such as for summer or winter only—check the box on line 18. Checking the box tells the IRS not to expect four Forms 941-SS from you throughout the year because you haven't paid wages regularly. Generally, we won't ask about unfiled returns if at least one taxable return is filed each year. However, you must check the box on line 18 on every Form 941-SS you file. Otherwise, the IRS will expect a return to be filed for each quarter. Also, when you complete Form 941-SS, be sure to check the box on the top of the form that corresponds to the quarter reported. The amounts entered on lines 19 through 28 are amounts that you use on the worksheets at the end of these instructions to figure certain credits. If you’re claiming these credits, you must enter the applicable amounts. Complete lines 19 and 20 only if qualified health plan expenses allocable to qualified sick leave wages and/or qualified family leave wages were paid this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021. 19. Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021 Enter the qualified health plan expenses allocable to qualified sick leave wages paid this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021. This amount is also entered on Worksheet 1, Step 2, line 2b. 20. Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021 Enter the qualified health plan expenses allocable to qualified family leave wages paid this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021. This amount is also entered on Worksheet 1, Step 2, line 2f. Complete lines 23, 24, and 25 only if qualified sick leave wages were paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021. 23. Qualified Sick Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021 Enter the qualified sick leave wages you paid this quarter of 2023 to your employees for leave taken after March 31, 2021, and before October 1, 2021, including any qualified sick leave wages that were above the social security wage base and any qualified sick leave wages excluded from the definition of employment under sections 3121(b)(1)–(22). See the instructions for line 11d, earlier, for more information about qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 2021. This amount is also entered on Worksheet 2, Step 2, line 2a. 24. Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Reported on Line 23 Enter the qualified health plan expenses allocable to qualified sick leave wages paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021. This amount is also entered on Worksheet 2, Step 2, line 2b. 25. Amounts Under Certain Collectively Bargained Agreements Allocable to Qualified Sick Leave Wages Reported on Line 23 Enter the collectively bargained defined benefit pension plan contributions and collectively bargained apprenticeship program contributions allocable to qualified sick leave wages paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021. This amount is also entered on Worksheet 2, Step 2, line 2c. Complete lines 26, 27, and 28 only if qualified family leave wages were paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021. 26. Qualified Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021 Enter the qualified family leave wages you paid this quarter of 2023 to your employees for leave taken after March 31, 2021, and before October 1, 2021, including any qualified family leave wages that were above the social security wage base and any qualified family leave wages excluded from the definition of employment under sections 3121(b)(1)–(22). See the instructions for line 11d, earlier, for more information about qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021. This amount is also entered on Worksheet 2, Step 2, line 2g. 27. Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages Reported on Line 26 Enter the qualified health plan expenses allocable to qualified family leave wages paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021. This amount is also entered on Worksheet 2, Step 2, line 2h. 28. Amounts Under Certain Collectively Bargained Agreements Allocable to Qualified Family Leave Wages Reported on Line 26 Enter the collectively bargained defined benefit pension plan contributions and collectively bargained apprenticeship program contributions allocable to qualified family leave wages paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021. This amount is also entered on Worksheet 2, Step 2, line 2i. Part 4: May We Speak With Your Third-Party Designee? If you want to allow an employee, a paid tax preparer, or another person to discuss your Form 941-SS with the IRS, check the “Yes” box in Part 4. Enter the name, phone number, and five-digit personal identification number (PIN) of the specific person to speak with—not the name of the firm that prepared your tax return. The designee may choose any five numbers as their PIN. By checking “Yes,” you authorize the IRS to talk to the person you named (your designee) about any questions we may have while we process your return. You also authorize your designee to do all of the following. Give us any information that is missing from your return. Call us for information about processing your return. Respond to certain IRS notices that you’ve shared with your designee about math errors and return preparation. The IRS won't send notices to your designee. You’re not authorizing your designee to bind you to anything (including additional tax liability) or to otherwise represent you before the IRS. If you want to expand your designee's authorization, see Pub. 947. The authorization will automatically expire 1 year from the due date (without regard to extensions) for filing your Form 941-SS. If you or your designee wants to terminate the authorization, write to the IRS office for your location using the Without a payment address under Where Should You File , earlier. Part 5: Sign Here (Approved Roles) Complete all information and sign Form 941-SS. The following persons are authorized to sign the return for each type of business entity. Sole proprietorship—The individual who owns the business. Corporation (including a limited liability company (LLC) treated as a corporation)—The president, vice president, or other principal officer duly authorized to sign. Partnership (including an LLC treated as a partnership) or unincorporated organization—A responsible and duly authorized partner, member, or officer having knowledge of its affairs. Single-member LLC treated as a disregarded entity for federal income tax purposes—The owner of the LLC or a principal officer duly authorized to sign. Trust or estate—The fiduciary. Form 941-SS may be signed by a duly authorized agent of the taxpayer if a valid power of attorney has been filed. Alternative signature method. Corporate officers or duly authorized agents may sign Form 941-SS by rubber stamp, mechanical device, or computer software program. For details and required documentation, see Rev. Proc. 2005-39, 2005-28 I.R.B. 82, available at IRS.gov/irb/2005-28_IRB#RP-2005-39. Paid Preparer Use Only A paid preparer must sign Form 941-SS and provide the information in the Paid Preparer Use Only section of Part 5 if the preparer was paid to prepare Form 941-SS and isn't an employee of the filing entity. Paid preparers must sign paper returns with a manual signature. The preparer must give you a copy of the return in addition to the copy to be filed with the IRS. If you’re a paid preparer, enter your Preparer Tax Identification Number (PTIN) in the space provided. Include your complete address. If you work for a firm, enter the firm's name and the EIN of the firm. You can apply for a PTIN online or by filing Form W-12. For more information about applying for a PTIN online, go to IRS.gov/PTIN. You can't use your PTIN in place of the EIN of the tax preparation firm. Generally, don't complete this section if you’re filing the return as a reporting agent and have a valid Form 8655 on file with the IRS. However, a reporting agent must complete this section if the reporting agent offered legal advice, for example, advising the client on determining whether its workers are employees or independent contractors for federal tax purposes. How To Get Forms, Instructions, and Publications From the IRS You can view, download, or print most of the forms, instructions, and publications you may need at IRS.gov/Forms. Otherwise, you can go to IRS.gov/OrderForms to place an order and have them mailed to you. The IRS will process your order for forms and publications as soon as possible. Don't resubmit requests you've already sent us. You can get forms and publications faster online. Worksheet 1. Credit for Qualified Sick and Family Leave Wages Paid This Quarter of 2023 for Leave Taken After March 31, 2020, and Before April 1, 2021 Determine how you will complete this worksheet. (If you’re a third-party payer, you must complete this worksheet for each client for which it is applicable, on a client-by-client basis.) If you paid qualified sick leave wages and/or qualified family leave wages this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021, complete Step 1 and Step 2. Caution: Use Worksheet 2 to figure the credit for qualified sick and family leave wages paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021. Step 1. Determine the employer share of social security tax this quarter after it is reduced by any credit claimed on Form 8974 and any credit to be claimed on Form 5884-C and/or Form 5884-D 1a Enter the amount of social security tax from Form 941-SS, Part 1, line 5a, column 2 1a _____ 1b Enter the amount of social security tax from Form 941-SS, Part 1, line 5b, column 2 1b _____ 1c Add lines 1a and 1b 1c _____ 1d Multiply line 1c by 50% (0.50) 1d _____ 1e If you’re a third-party payer of sick pay that isn't an agent and you're claiming credits for amounts paid to your employees, enter the employer share of social security tax included on Form 941-SS, Part 1, line 8 (enter as a positive number) 1e _____ 1f Subtract line 1e from line 1d 1f _____ 1g If you received a Section 3121(q) Notice and Demand during the quarter, enter the amount of the employer share of social security tax from the notice 1g _____ 1h Employer share of social security tax. Add lines 1f and 1g 1h _____ 1i Enter the amount from Form 8974, line 12, for this quarter 1i _____ 1j Enter the amount to be claimed on Form 5884-C, line 11, for this quarter 1j _____ 1j(i) Enter the amount to be claimed on Form 5884-D, line 12, for this quarter 1j(i) _____ 1k Total nonrefundable credits already used against the employer share of social security tax. Add lines 1i, 1j, and 1j(i) 1k _____ 1l Employer share of social security tax remaining. Subtract line 1k from line 1h 1l _____ Step 2. Figure the sick and family leave credit 2a Qualified sick leave wages reported on Form 941-SS, Part 1, line 5a(i), column 1 2a _____ 2a(i) Qualified sick leave wages included on Form 941-SS, Part 1, line 5c, but not included on Form 941-SS, Part 1, line 5a(i), column 1, because the wages reported on that line were limited by the social security wage base 2a(i) _____ 2a(ii) Total qualified sick leave wages. Add lines 2a and 2a(i) 2a(ii) _____ 2a(iii) Qualified sick leave wages excluded from the definition of employment under sections 3121(b)(1)–(22) 2a(iii) _____ 2b Qualified health plan expenses allocable to qualified sick leave wages (Form 941-SS, Part 3, line 19) 2b _____ 2c Employer share of Medicare tax on qualified sick leave wages. Multiply line 2a(ii) by 1.45% (0.0145) 2c _____ 2d Credit for qualified sick leave wages. Add lines 2a(ii), 2a(iii), 2b, and 2c 2d _____ 2e Qualified family leave wages reported on Form 941-SS, Part 1, line 5a(ii), column 1 2e _____ 2e(i) Qualified family leave wages included on Form 941-SS, Part 1, line 5c, but not included on Form 941-SS, Part 1, line 5a(ii), column 1, because the wages reported on that line were limited by the social security wage base 2e(i) _____ 2e(ii) Total qualified family leave wages. Add lines 2e and 2e(i) 2e(ii) _____ 2e(iii) Qualified family leave wages excluded from the definition of employment under sections 3121(b)(1)–(22) 2e(iii) _____ 2f Qualified health plan expenses allocable to qualified family leave wages (Form 941-SS, Part 3, line 20) 2f _____ 2g Employer share of Medicare tax on qualified family leave wages. Multiply line 2e(ii) by 1.45% (0.0145) 2g _____ 2h Credit for qualified family leave wages. Add lines 2e(ii), 2e(iii), 2f, and 2g 2h _____ 2i Credit for qualified sick and family leave wages. Add lines 2d and 2h 2i _____ 2j Nonrefundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2020, and before April 1, 2021. Enter the smaller of line 1l or line 2i. Enter this amount on Form 941-SS, Part 1, line 11b 2j 2k Refundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2020, and before April 1, 2021. Subtract line 2j from line 2i and enter this amount on Form 941-SS, Part 1, line 13c 2k Worksheet 2. Credit for Qualified Sick and Family Leave Wages Paid This Quarter of 2023 for Leave Taken After March 31, 2021, and Before October 1, 2021 Determine how you will complete this worksheet. (If you’re a third-party payer, you must complete this worksheet for each client for which it is applicable, on a client-by-client basis.) If you paid qualified sick leave wages and/or qualified family leave wages this quarter of 2023 for leave taken after March 31, 2021, and before October 1, 2021, complete Step 1 and Step 2. Caution: Use Worksheet 1 to figure the credit for qualified sick and family leave wages paid this quarter of 2023 for leave taken after March 31, 2020, and before April 1, 2021. Step 1. Determine the employer share of Medicare tax this quarter after it is reduced by any credit claimed on Form 8974 1a Enter the amount of Medicare tax from Form 941-SS, Part 1, line 5c, column 2 1a _____ 1b Multiply line 1a by 50% (0.50) 1b _____ 1c If you’re a third-party payer of sick pay that isn't an agent and you're claiming credits for amounts paid to your employees, enter the employer share of Medicare tax included on Form 941-SS, Part 1, line 8 (enter as a positive number) 1c _____ 1d Subtract line 1c from line 1b 1d _____ 1e If you received a Section 3121(q) Notice and Demand during the quarter, enter the amount of the employer share of Medicare tax from the notice 1e _____ 1f Employer share of Medicare tax. Add lines 1d and 1e 1f _____ 1g Enter the amount from Form 8974, line 16, for this quarter 1g _____ 1h Employer share of Medicare tax remaining. Subtract line 1g from line 1f 1h _____ Step 2. Figure the sick and family leave credit 2a Qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 2021 (Form 941-SS, Part 3, line 23) 2a _____ 2a(i) Qualified sick leave wages included on Form 941-SS, Part 3, line 23, that were not included as wages reported on Form 941-SS, Part 1, lines 5a and 5c, because the qualified sick leave wages were excluded from the definition of employment under sections 3121(b)(1)–(22) 2a(i) _____ 2a(ii) Subtract line 2a(i) from line 2a 2a(ii) _____ 2a(iii) Qualified sick leave wages included on Form 941-SS, Part 3, line 23, that were not included as wages reported on Form 941-SS, Part 1, line 5a, because the qualified sick leave wages were limited by the social security wage base 2a(iii) _____ 2a(iv) Subtract line 2a(iii) from line 2a(ii) 2a(iv) _____ 2b Qualified health plan expenses allocable to qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 2021 (Form 941-SS, Part 3, line 24) 2b _____ 2c Amounts under certain collectively bargained agreements allocable to qualified sick leave wages for leave taken after March 31, 2021, and before October 1, 2021 (Form 941-SS, Part 3, line 25) 2c _____ 2d Employer share of social security tax on qualified sick leave wages. Multiply line 2a(iv) by 6.2% (0.062) 2d _____ 2e Employer share of Medicare tax on qualified sick leave wages. Multiply line 2a(ii) by 1.45% (0.0145) 2e _____ 2f Credit for qualified sick leave wages. Add lines 2a, 2b, 2c, 2d, and 2e 2f _____ 2g Qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021 (Form 941-SS, Part 3, line 26) 2g _____ 2g(i) Qualified family leave wages included on Form 941-SS, Part 3, line 26, that were not included as wages reported on Form 941-SS, Part 1, lines 5a and 5c, because the qualified family leave wages were excluded from the definition of employment under sections 3121(b)(1)–(22) 2g(i) _____ 2g(ii) Subtract line 2g(i) from line 2g 2g(ii) _____ 2g(iii) Qualified family leave wages included on Form 941-SS, Part 3, line 26, that were not included as wages reported on Form 941-SS, Part 1, line 5a, because the qualified family leave wages were limited by the social security wage base 2g(iii) _____ 2g(iv) Subtract line 2g(iii) from line 2g(ii) 2g(iv) _____ 2h Qualified health plan expenses allocable to qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021 (Form 941-SS, Part 3, line 27) 2h _____ 2i Amounts under certain collectively bargained agreements allocable to qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021 (Form 941-SS, Part 3, line 28) 2i _____ 2j Employer share of social security tax on qualified family leave wages. Multiply line 2g(iv) by 6.2% (0.062) 2j _____ 2k Employer share of Medicare tax on qualified family leave wages. Multiply line 2g(ii) by 1.45% (0.0145) 2k _____ 2l Credit for qualified family leave wages. Add lines 2g, 2h, 2i, 2j, and 2k 2l _____ 2m Credit for qualified sick and family leave wages. Add lines 2f and 2l 2m _____ 2n Enter any credit claimed under section 41 for increasing research activities with respect to any wages taken into account for the credit for qualified sick and family leave wages 2n _____ 2o Credit for qualified sick and family leave wages after adjusting for other credits. Subtract line 2n from line 2m 2o _____ 2p Nonrefundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021. Enter the smaller of line 1h or line 2o. Enter this amount on Form 941-SS, Part 1, line 11d 2p 2q Refundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021. Subtract line 2p from line 2o and enter this amount on Form 941-SS, Part 1, line 13e 2q
