In August, the president issued an executive order that allows qualified employees to defer Social Security taxes from payrolls until December 31, 2020. This required more revisions for the Quarter 3 Form 941 to accommodate the deferrals.
Like the 2020 Quarter 2 Form 941, the new 2020 Quarter 3 941 takes into account refundable tax credits under the Families First Coronavirus Response Act (FFCRA), Employer Retention Credits (ERC), advance payments of credits with Form 7200, and employer deferred Social Security taxes. However, the revised Quarter 3 form also includes a line for any employee Social Security tax deferred.
Patriot Basic Payroll customers can download the IRS 941 from the payroll software. Patriot will fill in the proper amounts on the form based on your account settings and payrolls run in the software. For more information, please read our help article, Basic Payroll Customers: Completing Form 941.
Patriot Full Service customers will have Quarter 3 941’s in their tax packets along with Worksheet 1, refunds from filing form 7200, and any employer and/or employee Social Security deferrals for the quarter.
(How’s that for easy?)