Form 941 has been revised again for the second quarter of 2022. The tax relief programs passed during the pandemic continue to expire, this continues to affect Form 941.
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 ones were the employee retention credit (ERC), the credits for qualified sick and family leave wages, and later the COBRA premium assistance credits.
Reporting Tax Credits for Q2 of 2022
During the second quarter, no COVID-19 tax credits can be claimed for the current quarter. Some employers may need to report credits claimed for wages in previous quarters when they were available.
These COVID-19-related tax credits have all expired:
Credits for qualified sick and family leave wages
Employee retention credit (ERC)
COBRA premium assistance credits
Available 941 Worksheets
There are two worksheets for Form 941 for the second quarter. These worksheets should be used by employers to calculate and claim credits for applicable wages paid in previous quarters.
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
Updated Lines of Form 941 for Q2
The lines that captured information on the COBRA premium assistance credit have been revised. The following lines are “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.
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