The IRS Plans to Update Form 941 for the Second Quarter of 2022
While this may not come as a surprise to businesses, considering how many versions of Form 941 have been released over the past two years, Form 941 will be revised again for the second quarter of 2022. This has been due to the many tax relief measures introduced to help businesses throughout the pandemic.
When the CARES Act and then the American Rescue Plan Act were passed, different tax credits were introduced to help businesses. Some of the earliest include the employee retention credit (ERC), the credits for qualified sick and family leave wages, and later the COBRA premium assistance credits.
Stay tuned to learn about the latest updates that we can expect the IRS to finalize for the second quarter Form 941.
Are there any Tax Credits Available for Q2 of 2022?
No, during the second quarter COVID-19 tax credits can’t be claimed for the current quarter. Although, employers may need to report credits claimed for wages in previous quarters when they were available.
All of the following COVID-19 related tax credits have expired:
- Credits for qualified sick and family leave wages
- Employee retention credit (ERC)
- COBRA premium assistance credits
Are there any Worksheets for Q2 of 2022?
Yes, there will still be two worksheets for Form 941 for the second quarter of 2022. These worksheets can be used by employers that need to calculate and claim credits for applicable wages paid in previous quarters. These are the worksheets for the second quarter of 2022:
- Worksheet 1. Credit for Qualified Sick and Family Leave Wages Paid This Quarter of 2022 for Leave Taken After March 31, 2020, and Before April 1, 2021
- Worksheet 2. Credit for Qualified Sick and Family Leave Wages Paid This Quarter of 2022 for Leave Taken After March 31, 2021, and Before October 1, 2021
Which Lines of Form 941 have been Updated?
Basically, all of the lines that captured information on the COBRA premium assistance credit have been revised. The following lines are now “Reserved for Future Use”:
- Line 11e: Non Refundable portion of COBRA premium assistance credit (see instructions for the applicable quarter).
- Line 11f: Number of individuals provided COBRA premium assistance
- Line 13f: Refundable portion of COBRA premium assistance credit (see instructions for the applicable quarter)
Some lines have been updated to exclude the lines above. This includes the following:
- Line 11g: Total nonrefundable credits. Add lines 11a, 11b, and 11d.
- Line 13g: Total deposits and refundable credits. Add lines 13a, 13c, and 13e.
Has the Form 941 Draft for the Second Quarter been Finalized?
No, at this time the Form 941 for the second quarter of 2022 is a draft. This means that the IRS has created the form, but it has not been finalized. It is important to note that the IRS generally finalizes Form 941 closer to its quarterly deadline.
In the meantime, the form is subject to change, however, the current updates are a pretty clear indicator of what employers can expect from the final Form 941 this quarter.
When it comes time to file your Form 941 for the second quarter of 2022, TaxBandits will have you covered! Our team stays up to date on all the latest information from the IRS so that we can update our e-filing process accordingly and so that we can help you stay in the loop!
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