Userid: CPM Schema: Leadpct: 100% Pt. size: 10 Draft Ok to Print instrx AH XSL/XML Fileid: … i941schr/202303/a/xml/cycle04/source (Init. & Date) _______ Page 1 of 3 8:54 - 25-Jan-2023 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Department of the Treasury Internal Revenue Service Instructions for Schedule R (Form 941) (Rev. March 2023) Allocation Schedule for Aggregate Form 941 Filers Section references are to the Internal Revenue Code Who Must File? unless otherwise noted. Agents approved by the IRS under section 3504 and CPEOs must complete Schedule R each time they file an Future Developments aggregate Form 941. To request approval to act as an For the latest information about developments related to agent for an employer under section 3504, the agent must Schedule R and its instructions, such as legislation file Form 2678 with the IRS. Form 2678 must be enacted after they were published, go to IRS.gov/ previously filed and approved by the IRS before filing Form941. Schedule R. To become a CPEO, the organization must apply through the IRS Online Registration System. Go to the IRS website at IRS.gov/CPEO for more information. What’s New Other third-party payers that file aggregate Forms 941, Calendar year “2023” has been prepopulated on the such as non-certified PEOs, must complete and file March 2023 revision of Schedule R. Don't use the March Schedule R if they have clients that are claiming the 2023 revision of Schedule R for any calendar quarter qualified small business payroll tax credit for increasing beginning before January 1, 2023. At this time, the IRS research activities or the credit for qualified sick and expects the March 2023 revision of Schedule R and these family leave wages. Third-party payers other than agents instructions to also be used for the second, third, and approved by the IRS under section 3504 and CPEOs fourth quarters of 2023. If changes in law require need to include client-by-client amounts only for those additional changes to Schedule R, the form and/or these clients claiming one or more of these credits. Amounts for instructions may be revised. Prior revisions of Schedule R clients not claiming any of these credits are included on are available at IRS.gov/Form941 (select the link for "All Schedule R, page 1, line 8. Form 941 Revisions" under "Other Items You May Find Generally, the common-law employer of the individuals Useful"). Don't use an earlier revision of Schedule R for that are paid qualified sick or family leave wages is any calendar quarter beginning after December 31, 2022. entitled to the credit for qualified sick and family leave See the Instructions for Form 941 for information wages regardless of whether they use a third-party payer. TIP on which employers may be eligible to claim the The third-party payer isn't entitled to the credit with credit for qualified sick and family leave wages respect to the wages and taxes it remits on behalf of paid in 2023. clients (regardless of whether the third party is considered an "employer" for other purposes). When Must You File? General Instructions If you’re an aggregate Form 941 filer, file Schedule R with Purpose of Schedule R your aggregate Form 941 every quarter. Agents and Use Schedule R to allocate certain aggregate information non-certified PEOs may file Form 941 and Schedule R reported on Form 941 to each client. For purposes of electronically or by paper submission. CPEOs must Schedule R, the term “client” means (a) an “employer or generally file Form 941 and Schedule R electronically. For payer” identified on Form 2678, Employer/Payer more information about a CPEO's requirement to file Appointment of Agent; (b) a customer who enters into a electronically, see Rev. Proc. 2017-14, 2017-3 I.R.B. 426, contract that meets the requirements under section available at IRS.gov/irb/2017-03_IRB#RP-2017-14. 7705(e)(2); (c) a client who enters into a service agreement described under Regulations section Specific Instructions 31.3504-2(b)(2) with a certified professional employer organization (CPEO); (d) a client who enters into a service Completing Schedule R agreement described under Regulations section 31.3504-2(b)(2) with a non-certified professional employer Enter Your Business Information organization (PEO); or (e) a third party paying qualified Carefully enter your employer identification number (EIN) sick leave wages as an agent for the employer under and the name of your business at the top of the schedule. Regulations section 32.1(e)(3). If you have more than five Make sure they exactly match the EIN and name shown clients, complete as many Continuation Sheets as on the attached Form 941. Check one of the "Type of filer" necessary. Attach Schedule R, including any Continuation boxes to tell us if you're a section 3504 agent, a CPEO, or Sheets, to your aggregate Form 941. any other type of third party (for example, a non-certified PEO). Nov 29, 2022 Cat. No. 53729E |
Page 2 of 3 Fileid: … i941schr/202303/a/xml/cycle04/source 8:54 - 25-Jan-2023 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Calendar Year This amount includes Additional Medicare Tax Calendar year “2023” has been prepopulated on the withholding. March 2023 revision of Schedule R. Column j. Section 3121(q) Notice and Demand—Tax due on unreported tips allocated to the listed client EIN Check the Box for the Quarter from Form 941, line 5f. Check the appropriate box of the quarter for which you're Column k. Qualified small business payroll tax credit for filing Schedule R. Make sure the quarter checked on the increasing research activities allocated to the listed client top of the Schedule R matches the quarter checked on the EIN from Form 941, line 11a. You must attach a separate attached Form 941. Form 8974 for each client claiming this credit. Client and Employee Information Column l. Nonrefundable portion of the credit for On Schedule R, including any Continuation Sheets, you qualified sick and family leave wages paid this quarter of must report the following for each client. 2023 for leave taken after March 31, 2020, and before April 1, 2021, allocated to the listed client EIN from Form Note. When entering amounts over 999.99 on 941, line 11b. Schedule R, don't enter commas. Column m. Nonrefundable portion of the credit for Column a. The client’s EIN. qualified sick and family leave wages paid this quarter of Column b (CPEO Use Only). Enter a code to report the 2023 for leave taken after March 31, 2021, and before type of wages, tips, and other compensation paid to the October 1, 2021, allocated to the listed client EIN from individual(s) performing services for the client. If you paid Form 941, line 11d. more than one type of wages, tips, or other compensation, Column n. Total taxes after adjustments and you must use more than one line to report for that client nonrefundable credits allocated to the listed client EIN and enter the applicable code for each line. The following from Form 941, line 12. four codes are the only entries that can be made in Column o. Total deposits for this quarter, including column b. overpayment applied from a prior quarter and • A: Wages, tips, and other compensation paid under overpayments applied from Form 941-X, 941-X (PR), section 3511(a). 944-X, or 944-X (SP) filed in the current quarter allocated • B: Wages, tips, and other compensation paid under to the listed client EIN from Form 941, line 13a. Include section 3511(c). any payment made with the return allocated to the listed • C: Wages, tips, and other compensation not reported client EIN. under code A or code B paid as a payor under a service agreement described in Regulations section 31.3504-2(b) Column p. Refundable portion of the credit for qualified (2). sick and family leave wages paid this quarter of 2023 for • D: Wages, tips, and other compensation paid as an leave taken after March 31, 2020, and before April 1, agent under Regulations section 31.3504-1. 2021, allocated to the listed client EIN from Form 941, line 13c. Column c. Number of employees who received wages, tips, or other compensation for the pay period for the listed Column q. Refundable portion of the credit for qualified client EIN from Form 941, line 1. sick and family leave wages paid this quarter of 2023 for leave taken after March 31, 2021, and before October 1, Column d. Wages, tips, and other compensation 2021, allocated to the listed client EIN from Form 941, allocated to the listed client EIN from Form 941, line 2. line 13e. Column e. Total federal income tax withheld from wages, Column r. Qualified health plan expenses allocable to tips, and other compensation allocated to the listed client qualified sick leave wages paid this quarter of 2023 for EIN from Form 941, line 3. leave taken after March 31, 2020, and before April 1, Column f. Total qualified sick leave wages and qualified 2021, allocated to the listed client EIN from Form 941, family leave wages paid this quarter of 2023 for leave line 19. taken after March 31, 2020, and before April 1, 2021, Column s. Qualified health plan expenses allocable to allocated to the listed client EIN from Form 941, lines 5a(i) qualified family leave wages paid this quarter of 2023 for and 5a(ii), column 1. leave taken after March 31, 2020, and before April 1, Column g. Total social security tax allocable to taxable 2021, allocated to the listed client EIN from Form 941, social security wages (which includes qualified sick and line 20. family leave wages paid this quarter of 2023 for leave Column t. Qualified sick leave wages paid this quarter of taken after March 31, 2021, and before October 1, 2021) 2023 for leave taken after March 31, 2021, and before and taxable social security tips allocated to the listed October 1, 2021, allocated to the listed client EIN from client EIN from Form 941, lines 5a and 5b, column 2. Form 941, line 23. Column h. Medicare tax allocated to the listed client EIN Column u. Qualified health plan expenses allocable to from Form 941, line 5c, column 2. qualified sick leave wages paid this quarter of 2023 for Column i. Total social security and Medicare taxes leave taken after March 31, 2021, and before October 1, allocated to the listed client EIN from Form 941, line 5e. 2021, allocated to the listed client EIN from Form 941, line 24. -2- Instructions for Schedule R (Form 941) (Rev. 3-2023) |
Page 3 of 3 Fileid: … i941schr/202303/a/xml/cycle04/source 8:54 - 25-Jan-2023 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Column v. Amounts under certain collectively bargained Line 7. Enter the combined subtotal from line 9 of all agreements allocable to qualified sick leave wages paid Continuation Sheets for Schedule R for column c through this quarter of 2023 for leave taken after March 31, 2021, column y. and before October 1, 2021, allocated to the listed client Line 8. Enter Form 941 amounts for your employees for EIN from Form 941, line 25. column c through column y. Non-certified PEOs and Column w. Qualified family leave wages paid this quarter third-party payers of sick pay as agents for the employer of 2023 for leave taken after March 31, 2021, and before must consolidate and include on line 8 any amounts for October 1, 2021, allocated to the listed client EIN from clients that aren't reported individually on Schedule R. Form 941, line 26. Line 9. Enter the totals of lines 6, 7, and 8 for column c Column x. Qualified health plan expenses allocable to through column y. The totals on line 9 must match the qualified family leave wages paid this quarter of 2023 for totals on the aggregate Form 941. If the totals don't leave taken after March 31, 2021, and before October 1, match, there is an error that must be corrected before 2021, allocated to the listed client EIN from Form 941, filing Form 941 and Schedule R. line 27. Continuation Sheet for Schedule R (Form 941) Column y. Amounts under certain collectively bargained agreements allocable to qualified family leave wages paid Columns a through y. See the instructions under this quarter of 2023 for leave taken after March 31, 2021, Completing Schedule R, earlier. and before October 1, 2021, allocated to the listed client Line 9. Enter subtotals for clients from lines 1 through 8 EIN from Form 941, line 28. for column c through column y. Line 6. Enter the subtotals for clients for column c through column y. Paperwork Reduction Act Notice We ask for the information on Schedule R to carry out the Recordkeeping. . . . . . . . . . . . . . . . . . . . . 20 hr., 5 min. Internal Revenue laws of the United States. You’re Learning about the law or the form . . . . . . . 18 min. required to give us this information. We need it to ensure Preparing and sending the form to the IRS. . 38 min. that you’re complying with these laws and to allow us to figure and collect the right amount of tax. You’re not required to provide the information If you have comments concerning the accuracy of requested on a form that is subject to the Paperwork these time estimates or suggestions for making Reduction Act unless the form displays a valid OMB Schedule R simpler, we would be happy to hear from you. control number. Books or records relating to a form or its You can send us comments from IRS.gov/ instructions must be retained as long as their contents FormComments. Or you can send your comments to may become material in the administration of any Internal Internal Revenue Service, Tax Forms and Publications Revenue law. Generally, tax returns and return Division, 1111 Constitution Ave. NW, IR-6526, information are confidential, as required by Code section Washington, DC 20224. Don't send Schedule R to this 6103. address. Instead, see Where Should You File? in the The time needed to complete and file Schedule R will Instructions for Form 941. vary depending on individual circumstances. The estimated average time is: Instructions for Schedule R (Form 941) (Rev. 3-2023) -3- |