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AH XSL/XML Fileid: … orm-943)/202412/a/xml/cycle05/source (Init. & Date) _______

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Instructions for Schedule R

(Form 943)

(Rev. December 2024)
Allocation Schedule for Aggregate Form 943 Filers

Section references are to the Internal Revenue Code Electronically filing an amended Form 943. The IRS
unless otherwise noted. now offers filing an amended Form 943 and Schedule R
as part of Modernized e-File (MeF). Go to IRS.gov for
Future Developments more information.

For the latest information about developments related to
Schedule R and its instructions, such as legislation General Instructions
enacted after they were published, go to IRS.gov/
Form943. Purpose of Schedule R
Use Schedule R to allocate certain aggregate information
reported on Form 943 or 943-X to each client. For
What’s New
purposes of Schedule R, the term “client” means (a) an
These instructions were updated for changes made to the “employer or payer” identified on the Form 2678,
2024 revision of the Form 943. The lines related to the Employer/Payer Appointment of Agent; (b) a customer
credit for qualified sick and family leave wages have been who enters into a contract that meets the requirements
removed from the Form 943. Due to the removal of these under section 7705(e)(2); (c) a client who enters into a
lines, we have reverted back to the format previously used service agreement described under Regulations section
on the 2019 revision of the Form 943. If you're eligible to 31.3504-2(b)(2) with a certified professional employer
claim the credit for qualified sick and family leave wages organization (CPEO); (d) a client who enters into a service
because you paid the wages in 2024 for an earlier agreement described under Regulations section
applicable leave period, file Form 943-X, Adjusted 31.3504-2(b)(2) with a non-certified professional employer
Employer's Annual Federal Tax Return for Agricultural organization (PEO); or (e) a third party paying qualified
Employees or Claim for Refund, after filing Form 943, to sick leave wages as an agent for the employer under
claim the credit for qualified sick and family leave wages Regulations section 32.1(e)(3). If you have more than five
paid in 2024. Filing a Form 943-X before filing a Form 943 clients, complete as many Continuation Sheets as
for the year may result in errors or delays in processing necessary. Attach Schedule R, including any Continuation
your Form 943-X. For more information, see the Sheets, to your aggregate Form 943.
Instructions for Form 943 and the Instructions for Form
Who Must File?
943-X. The Schedule R columns for reporting amounts
related to the credit for qualified sick and family leave Agents approved by the IRS under section 3504 and
wages from Form 943 have been repurposed with the CPEOs must complete Schedule R each time they file an
lines related to the credit for qualified sick and family leave aggregate Form 943. To request approval to act as an
wages from Form 943-X. Columns e, f, k, l, n, and p agent for an employer under section 3504, the agent must
through y are now used only when Schedule R is attached file Form 2678 with the IRS. Form 2678 must be previously
to Form 943-X. Don't file an earlier revision of Schedule R filed and approved by the IRS before filing Schedule R. To
with Form 943 for any year beginning after 2023. become a CPEO, the organization must apply through the
IRS Online Registration System. Go to the IRS website at
Under some rare circumstances, it may be possible for a IRS.gov/CPEO for more information. Other third-party
premium payee to become entitled to the COBRA payers that file aggregate Forms 943, such as
premium assistance credit after the first quarter of 2022. non-certified PEOs, must complete and file Schedule R if
However, in those cases, the credit must be claimed on a they have clients that are claiming the qualified small
Form 943-X. We have repurposed column n on the business payroll tax credit for increasing research
Schedule R to report the lines related to the COBRA activities. Third-party payers other than agents approved
premium assistance credit on Form 943-X. For more by the IRS under section 3504 and CPEOs need to
information, see the Instructions for Form 943 and the include client-by-client amounts only for those clients
Instructions for Form 943-X. If you're filing Form 943-X to claiming the qualified small business payroll tax credit for
claim the COBRA premium assistance credit on behalf of increasing research activities. Amounts for clients not
any clients, you must file the 2024 revision of Schedule R claiming the qualified small business payroll tax credit for
with Form 943-X. You may need a prior revision of increasing research activities are included on Schedule R,
Schedule R when filing a Form 943-X (for example, to page 1, line 8. Schedule R must also be completed if any
claim or correct the employee retention credit). Prior clients are claiming credits on Form 943-X.
revisions of Schedule R are available at IRS.gov/Form943
(select the link for "All Revisions for Form 943" under
"Other items you may find useful").
Instructions for Schedule R (Form 943) (Rev. 12-2024) Catalog Number 74489F
Jul 25, 2024 Department of the Treasury Internal Revenue Service www.irs.gov

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When Must You File? client EIN from Form 943, line 1 (no Form 943-X
equivalent line).
If you’re an aggregate Form 943 filer, file Schedule R with
your aggregate Form 943 every year. Agents and Column d. Wages subject to social security tax allocated
non-certified PEOs may file Form 943 and Schedule R to the listed client EIN from Form 943, line 2 (Form 943-X,
electronically or by paper submission. CPEOs must line 6, column 1).
generally file Form 943 and Schedule R electronically. For Column e. Qualified sick leave wages paid in 2024 for
more information about a CPEO's requirement to file leave taken after March 31, 2020, and before April 1,
electronically, see Rev. Proc. 2023-18, 2023-13 I.R.B 605, 2021, allocated to the listed client EIN from Form 943-X,
available at IRS.gov/irb/2023-13_IRB#REV- line 7, column 1.
PROC-2023-18.
Column f. Qualified family leave wages paid in 2024 for
leave taken after March 31, 2020, and before April 1,
Specific Instructions 2021, allocated to the listed client EIN from Form 943-X,
line 8, column 1.
Completing Schedule R
Column g. Wages subject to Medicare tax allocated to
Enter Your Business Information the listed client EIN from Form 943, line 4 (Form 943-X,
line 9, column 1).
Carefully enter your employer identification number (EIN)
and the name of your business at the top of the schedule. Column h. Wages subject to Additional Medicare Tax
Make sure they exactly match the EIN and name shown withholding allocated to the listed client EIN from Form
on the attached Form 943 or 943-X. Check one of the 943, line 6 (Form 943-X, line 10, column 1).
"Type of filer" boxes to tell us if you're a section 3504 Column i. Federal income tax withheld allocated to the
agent, a CPEO, or any other type of third party (for listed client EIN from Form 943, line 8 (Form 943-X,
example, a non-certified PEO). line 11, column 1).
Calendar Year Column j. Qualified small business payroll tax credit for
Calendar year "2024" has been prepopulated on the increasing research activities allocated to the listed client
December 2024 revision of Schedule R. Don't use the EIN from Form 943, line 12 (Form 943-X, line 13, column
December 2024 revision of Schedule R for any year 1). You must attach a separate Form 8974 for each client
before 2024. claiming this credit.
Column k. Nonrefundable portion of credit for qualified
Form Checkbox sick and family leave wages paid in 2024 for leave taken
Under Report for calendar year at the top of Schedule R, after March 31, 2020, and before April 1, 2021, allocated
check a box to tell us if Schedule R is attached to Form to the listed client EIN from Form 943-X, line 14, column 1.
943 or 943-X.
Column l. Nonrefundable portion of credit for qualified
Client and Employee Information sick and family leave wages paid in 2024 for leave taken
On Schedule R, including any Continuation Sheets, you after March 31, 2021, and before October 1, 2021,
must report the following for each client. allocated to the listed client EIN from Form 943-X,
line 15b, column 1.
Note. When entering amounts over 999.99 on Column m. Total taxes after adjustments and
Schedule R, don't enter commas. nonrefundable credits allocated to the listed client EIN
Column a. The client’s EIN. from Form 943, line 13 (no Form 943-X equivalent line).
Column b (CPEO Use Only). Enter a code to report the Column n. Total COBRA premium assistance credit,
type of wages and other compensation paid to the nonrefundable and refundable portions paid in 2024,
individual(s) performing services for the client. If you paid allocated to the listed client EIN from Form 943-X, lines
more than one type of wages or other compensation, you 15c and 24c, column 1.
must use more than one line to report for that client and Column o. Total deposits for the year, including
enter the applicable code for each line. The following four overpayment applied from a prior year and overpayments
codes are the only entries that can be made in column b. applied from Form 943-X or Form 943-X (sp) filed in the
• A: Wages and other compensation paid under section current year, allocated to the listed client EIN from Form
3511(a). 943, line 14. Include any payment made with the return
• B: Wages and other compensation paid under section allocated to the listed client EIN (no Form 943-X
3511(c). equivalent line).
• C: Wages and other compensation not reported under
code A or code B paid as a payor under a service Column p. Refundable portion of credit for qualified sick
agreement described in Regulations section 31.3504-2(b) and family leave wages paid in 2024 for leave taken after
(2). March 31, 2020, and before April 1, 2021, allocated to the
• D: Wages and other compensation paid as an agent listed client EIN from Form 943-X, line 23, column 1.
under Regulations section 31.3504-1. Column q. Refundable portion of credit for qualified sick
Column c. Number of agricultural employees employed and family leave wages paid in 2024 for leave taken after
in the pay period that includes March 12 for the listed

2 Instructions for Schedule R (Form 943) (Rev. 12-2024)

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March 31, 2021, and before October 1, 2021, allocated to after March 31, 2021, and before October 1, 2021,
the listed client EIN from Form 943-X, line 24b, column 1. allocated to the listed client EIN from Form 943-X, line 35,
column 1.
Column r. Qualified health plan expenses allocable to
qualified sick leave wages paid in 2024 for leave taken Column y. Amounts under certain collectively bargained
after March 31, 2020, and before April 1, 2021, allocated agreements allocable to qualified family leave wages paid
to the listed client EIN from Form 943-X, line 26, column 1. in 2024 for leave taken after March 31, 2021, and before
October 1, 2021, allocated to the listed client EIN from
Column s. Qualified health plan expenses allocable to
Form 943-X, line 36, column 1.
qualified family leave wages paid in 2024 for leave taken
after March 31, 2020, and before April 1, 2021, allocated Line 6. Enter the subtotals for clients for column c
to the listed client EIN from Form 943-X, line 27, column 1. through column y.
Column t. Qualified sick leave wages paid in 2024 for Line 7. Enter the combined subtotal from line 9 of all
leave taken after March 31, 2021, and before October 1, Continuation Sheets for Schedule R for column c through
2021, allocated to the listed client EIN from Form 943-X, column y.
line 31, column 1.
Line 8. Enter Form 943 amounts for your employees for
Column u. Qualified health plan expenses allocable to column c through column y. Non-certified PEOs and
qualified sick leave wages paid in 2024 for leave taken third-party payers of sick pay as agents for the employer
after March 31, 2021, and before October 1, 2021, must consolidate and include on line 8 any amounts for
allocated to the listed client EIN from Form 943-X, line 32, clients that aren't reported individually on Schedule R.
column 1.
Line 9. Enter the totals of lines 6, 7, and 8 for column c
Column v. Amounts under certain collectively bargained through column y. The totals on line 9 must match the
agreements allocable to qualified sick leave wages paid in totals on the aggregate Form 943. If the totals don't match,
2024 for leave taken after March 31, 2021, and before there is an error that must be corrected before filing Form
October 1, 2021, allocated to the listed client EIN from 943 and Schedule R.
Form 943-X, line 33, column 1.
Continuation Sheet for Schedule R (Form 943)
Column w. Qualified family leave wages paid in 2024 for
leave taken after March 31, 2021, and before October 1, Columns a through y. See the instructions under
2021, allocated to the listed client EIN from Form 943-X, Completing Schedule R, earlier.
line 34, column 1. Line 9. Enter the subtotals for clients from lines 1 through
Column x. Qualified health plan expenses allocable to 8 for column c through column y.
qualified family leave wages paid in 2024 for leave taken

Paperwork Reduction Act Notice
We ask for the information on Schedule R to carry out the material in the administration of any Internal Revenue law.
Internal Revenue laws of the United States. You’re Generally, tax returns and return information are
required to give us this information. We need it to ensure confidential, as required by Code section 6103.
that you’re complying with these laws and to allow us to The time needed to complete and file Schedule R will
figure and collect the right amount of tax. vary depending on individual circumstances. The
You’re not required to provide the information requested estimated burden for filers filing Schedule R is approved
on a form that is subject to the Paperwork Reduction Act under OMB control number 1545-0029 and is included in
unless the form displays a valid OMB control number. the estimates shown in the Instructions for Form 943.
Books or records relating to a form or its instructions must
be retained as long as their contents may become

Instructions for Schedule R (Form 943) (Rev. 12-2024) 3

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