New Form 941 to be Released
IRS Form 941 is perhaps the most fundamental tax return associated with payroll. With few exceptions, every U.S. employer is required to reconcile and file its Federal Income Tax Withholding, Social Security, and Medicare taxes using Form 941 on a quarterly basis. One of the critical functions we do at Automatic Business Computing (ABC) is to prepare and e-file Form 941 each quarter for each of our clients.
For many years, the basics of the Form 941 were pretty stagnant. We hardly ever had to re-program or adjust for changes. We probably had at least an entire decade in the past where this was the case. In more recent years, the form has changed at least yearly, and sometimes multiple times per year! Still, if we're lucky, the form doesn't change too much from quarter-to-quarter.
For the 2nd quarter of 2020, our luck has officially run-out. During the quarter, the Federal government introduced myriad new laws in response to the Covid-19 outbreak. Several of these laws had direct and immediate impact on employers and the payroll industry. At the risk of blowing my own trumpet (hey, I did play trumpet in high school), I'm amazed at how quickly the industry has enacted updates and new features in order to offer these programs to employers. From PPP loan assistance, to Covid sick-pay credits, to employee retention credits, to Social Security deferrals, we have you covered. On the one hand, the dynamic nature of the payroll industry is impressive. On the other hand, if we make it look too easy, who knows what else the agencies may dream up?
So, that's the long way of saying the IRS will soon be releasing an updated version of the Form 941. And, judging by the draft, we are facing perhaps the most major revisions to the form, ever. Lucky for you, you have us!