Page 318 - Individual Forms & Instructions Guide

16:05 - 2-Feb-2023
Page 2 of 23
Fileid: … ons/i941/202303/a/xml/cycle05/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Tax Guide for Employers in the U.S. Virgin Islands, Guam, 5884-D (not on Form 941). Form 5884-D is filed after the
American Samoa, and the Commonwealth of the Northern Form 941 for the quarter for which the credit is being
Mariana Islands; and Pub. 179, Guía Contributiva Federal claimed has been filed. If you will claim this credit on Form
para Patronos Puertorriqueños, will no longer be available 5884-D and you're also claiming a credit for qualified sick
after 2023. Instead, information specific to agricultural and family leave wages for leave taken before April 1,
employers and employers in the U.S. territories will be 2021, you must include any credit that will be claimed on
included in Pub. 15, Employer's Tax Guide, beginning with Form 5884-D on Worksheet 1 for that quarter. For more
the Pub. 15 for use in 2024 (published December 2023). information about this credit, go to IRS.gov/Form5884D.
Beginning in 2024, there will be a new Pub. 15 (sp) that is 2023 withholding tables. The federal income tax
a Spanish-language version of Pub. 15. withholding tables are included in Pub. 15-T, Federal
Reminders Income Tax Withholding Methods.
Use the March 2023 revision of Form 941 to Certification program for professional employer or-
! report taxes for the first quarter of 2023; don't use ganizations (PEOs). The Stephen Beck, Jr., ABLE Act
CAUTION an earlier revision to report taxes for 2023. At this of 2014 required the IRS to establish a voluntary
time, the IRS expects the March 2023 revision of Form certification program for PEOs. PEOs handle various
941 and these instructions to also be used for the second, payroll administration and tax reporting responsibilities for
third, and fourth quarters of 2023. If changes in law their business clients and are typically paid a fee based on
require additional changes to Form 941, the form and/or payroll costs. To become and remain certified under the
these instructions may be revised. Prior revisions of Form certification program, certified professional employer
941 are available at IRS.gov/Form941 (select the link for organizations (CPEOs) must meet various requirements
“All Form 941 Revisions” under “Other Items You May described in sections 3511 and 7705 and related
Find Useful”). published guidance. Certification as a CPEO may affect
the employment tax liabilities of both the CPEO and its
The COVID-19 related credit for qualified sick and customers. A CPEO is generally treated for employment
family leave wages is limited to leave taken after tax purposes as the employer of any individual who
March 31, 2020, and before October 1, 2021. performs services for a customer of the CPEO and is
Generally, the credit for qualified sick and family leave covered by a contract described in section 7705(e)(2)
wages, as enacted under the Families First Coronavirus between the CPEO and the customer (CPEO contract),
Response Act (FFCRA) and amended and extended by but only for wages and other compensation paid to the
the COVID-related Tax Relief Act of 2020, for leave taken individual by the CPEO. To become a CPEO, the
after March 31, 2020, and before April 1, 2021, and the organization must apply through the IRS Online
credit for qualified sick and family leave wages under Registration System. For more information or to apply to
sections 3131, 3132, and 3133 of the Internal Revenue become a CPEO, go to IRS.gov/CPEO.
Code, as enacted under the American Rescue Plan Act of CPEOs must generally file Form 941 and Schedule R
2021 (the ARP) for leave taken after March 31, 2021, and (Form 941), Allocation Schedule for Aggregate Form 941
before October 1, 2021, have expired. However, Filers, electronically. For more information about a
employers that pay qualified sick and family leave wages CPEO’s requirement to file electronically, see Rev. Proc.
in 2023 for leave taken after March 31, 2020, and before 2017-14, 2017-3 I.R.B. 426, available at IRS.gov/irb/
October 1, 2021, are eligible to claim a credit for qualified 2017-03_IRB#RP-2017-14.
sick and family leave wages in the quarter of 2023 in
which the qualified wages were paid. For more Outsourcing payroll duties. Generally, as an employer,
information, see the instructions for line 11b, line 11d, you're responsible to ensure that tax returns are filed and
line 13c, and line 13e, later. deposits and payments are made, even if you contract
Use Worksheet 1 to figure the credit for leave taken with a third party to perform these acts. You remain
responsible if the third party fails to perform any required
after March 31, 2020, and before April 1, 2021. Use action. Before you choose to outsource any of your payroll
Worksheet 2 to figure the credit for leave taken after and related tax duties (that is, withholding, reporting, and
March 31, 2021, and before October 1, 2021. For more paying over social security, Medicare, FUTA, and income
information about the credit for qualified sick and family taxes) to a third-party payer, such as a payroll service
leave wages, go to IRS.gov/PLC. provider or reporting agent, go to IRS.gov/
Advance payment of COVID-19 credits ended. OutsourcingPayrollDuties for helpful information on this
Although you may pay qualified sick and family leave topic. If a CPEO pays wages and other compensation to
wages in 2023 for leave taken after March 31, 2020, and an individual performing services for you, and the services
before October 1, 2021, you may no longer request an are covered by a CPEO contract, then the CPEO is
advance payment of any credit on Form 7200, Advance generally treated for employment tax purposes as the
Payment of Employer Credits Due to COVID-19. employer, but only for wages and other compensation
Payroll tax credit for certain tax-exempt organiza- paid to the individual by the CPEO. However, with respect
tions affected by qualified disasters. Section 303(d) of to certain employees covered by a CPEO contract, you
the Taxpayer Certainty and Disaster Tax Relief Act of may also be treated as an employer of the employees
and, consequently, may also be liable for federal
2020 allows for a payroll tax credit for certain tax-exempt employment taxes imposed on wages and other
organizations affected by certain qualified disasters not compensation paid by the CPEO to such employees. For
related to COVID-19. This credit is claimed on Form

-2- Instructions for Form 941 (Rev. 3-2023)