Form 941 Is Revised Yet Again For The Third Quarter Of 2020

The IRS has released a draft of Form 941 for the 3rd Quarter of 2020. Here's what employers need to know:

Just when we all thought that we had gotten the hang of the new Form 941 for the second quarter, the IRS released a new draft of Form 941 for the third quarter

That’s right, in addition to all the changes due to COVID-19 tax credits, there are now a few additional changes to account for the payroll tax deferment that the current administration has put into place. 

Here is a little background on this new payroll deferment and how it will affect your reporting on Form 941 next month. 

The Payroll Deferment Action

The current administration has proposed this option to employers beginning on September 1, 2020. This guidance comes after an executive order signed by the president back in August. 

Employers are now able to defer withholding and deposits of the employee portion of the social security on wages between September 1, 2020 through December 31, 2020. 

It is up to employers whether or not they choose to participate in this payroll deferment. Those that do will need to report the deferred employee share of the Social Security taxes, therefore Form 941 must be revised for the third quarter of 2020

Since the Form 941 for the second quarter of 2020 only accommodates the deferral of the employer share of Social Security tax, this form must be updated. 

The Revised Form 941 for Q3

On August 28, 2020, the IRS released yet another revised draft of Form 941 with the needed revisions that employers will need to report their taxes properly for the third quarter of 2020. These changes include but are not limited to reporting the employee payroll deferment. 

What Does the New Form Look Like? 

The draft of Form 941 for the third quarter isn’t dramatically different, but there are a few key differences. Below, you will find the original lines of Form 941 for the second quarter of 2020 and their updated revisions for the third quarter. 

Line 1


Revised: The pay periods have been adjusted to reflect only Quarter 3 and Quarter 4.

Line 13b



Line 13b now refers to the amount of both employer and employee share of social security taxes. 

Lines 24 and 25



Line 24 will now be used for employers to report the employees’ share of social security taxes that have been deferred. 

Line 25 is still a mystery. The IRS has simply earmarked it for future use. 

Preparing for Your Form 941 Q3 Deadline

Remember, the draft released by the IRS is not a final tax form and should never be filed with the IRS. The finalized version of this form should be available from the IRS sometime in the near future. 

The deadline for filing Form 941 for the 3rd quarter of 2020 is October 31, 2020. Because this is a Saturday this year, the deadline to file this form will actually be November 2, 2020. 

This revised Form 941 will also be used for the 4th quarter of 2020, which is due to the IRS on January 31, 2021. 

If your business needs a streamlined solution for e-filing Form 941, then TaxBandits is the software you need. With our simple e-filing process, there is no need to stress over the new additions to the Form. Our software will guide you through Form 941 line by line, we even support Worksheet 1

For less stress and faster filing, get started with TaxBandits today! 

IRS Form 941

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