New Revisions to Form 941 For Second Quarter Coming

New Revisions to Form 941 For Second Quarter Coming

A draft of new revisions to Form 941, Employer’s Quarterly Federal Tax Return, an Internal Revenue Service (IRS) form used by employers to report federal income, social security and/or Medicare taxes withheld from employee’s paychecks, has been posted by the IRS.

These changes, which are still pending approval, are designed to support certain employers that operate a business in 2020 and retain employees, despite experiencing economic hardships related to COVID-19, with employee retention credits, expanded paid sick leave, emergency family medical leave, and or the employer deferral of social security taxes.

Some of the additional information that will be requested by the IRS in this draft 941 form includes:

    • Lines 5a (i) and (ii) have been added to the form in order to account for qualified paid sick and family medical leave wages.
    • Question 11b will account for nonrefundable portion of credits for qualified sick and family leave wages.
    • Question 11c will account for the nonrefundable portion of the employee retention credit.
    •  Employers can defer the deposit and payment of the employer share of social security tax otherwise due during the calendar quarter.
    • Employers that requested an advance of the sick and family leave credit and/or the employee retention credit during the quarter.

Please note this is a form 941 DRAFT and will likely undergo more changes before the final form is published towards the end of the second quarter, and will include final instructions and a worksheet to help employers compute their quarterly tax return.

Early release drafts are at and remain there after the final release is posted at All information about all forms, instructions, and pubs is at

Are you a Payroll Partners client? If you are, then there’s no need to stress over form 941! Rest assured that we will file this quarterly return for you. If you’re not, please reach out to us at (817) 226-8111 or for a consultation on your needs and our Human Capital Management solutions.