The Form 941 deadline is right around the corner on April 30, 2021, this means that it is also time to file the other variations of Form 941. These variations include the Form 941-PR and the Form 941-SS. Additionally, reporting agents such as CPEOs, PEOs, and 3504 agents must complete Schedule R when they file aggregate Forms 941.
These forms have been updated for the first quarter of 2021, here is what you need to know!
What is Form 941-PR?
The Form 941-PR is officially the Planilla para la Declaración Federal TRIMESTRAL del Patrono. This form is essentially the same as the original Form 941, however, it is used by employers of Puerto Rico. For this reason, the form is available in spanish.
The Form 941-PR is used by employers to report the income taxes, Medicare taxes, and social security taxes that were withheld from their employees’ wages. The Form 941-PR is also used to report refundable and nonrefundable portions of COVID-19 tax credits. The Form 941-PR is a quarterly form, therefore it is due to the IRS four times a year.
What is the Form 941-SS
The Form 941-SS is also essentially the same as the original Form 941. The main difference with the Form 941-SS is that it is filed by employers of American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands.
Much like the Form 941 and 941-PR, the Form 941-SS reports income taxes, Medicare taxes, and social security taxes that are required to be withheld from employees’ wages. In addition to the withholdings, this form also reports COVID-19 tax credits that have been claimed throughout the quarter.
Changes to Form 941-PR and 941-SS for the First Quarter
The good news is that there aren’t many changes to these forms for the first quarter of 2021. The main change is in regards to social security deferments. During the Last quarter, the fourth quarter of 2020, employers were able to defer their own share of social security and their employees’ share of social security payments.
This was due to an executive order from the last administration which allowed for the deferment of the employees’ share of social security between September 1, 2020 and December 31, 2020. This order has not been renewed by the new administration, and employers are no longer permitted to make these deferments.
Deferment information was reported on the Form 941, Form 941-PR, and Form 941-SS using lines 13b and 24. These lines are no longer needed for this purpose but are reserved for future use.
What is Schedule R?
If you are a reporting agent that files aggregate 941 forms on behalf of clients, the Schedule R must be completed. The Schedule R compiles the line by line Form 941 information for each client.
Changes to Schedule R for the First Quarter of 2021
The same updates made to Forms 941, 941-PR, and 941-SS are reflected on the Schedule R. The following columns of the form are no longer needed and are therefore reserved for future use.