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The New Form 941: Understanding the COVID-19 Changes to Your Quarterly Return


The FFCRA and CARES Act were chockful of tax implications, including credits, deferrals, grants, and new forms, that impact your federal tax liabilities and deposits. Now, at quarter-end, it’s time to reconcile everything. Form 941, your quarterly federal tax return, has gotten even longer and more complex, containing a whole new page and many new lines and data items.

So, whether you prepare Form 941 yourself or just review your provider’s form for accuracy, you’ll want to know the answers to the following:

  • How has the definition of “taxable social security wages” changed since last quarter?
  • What is the difference between the “nonrefundable portion” of your credits and the “refundable portion”?
  • How does the new Form 7200 impact your 941?
  • Which part of the form is for second-quarter only and why failing to complete that part correctly can cost you money?
  • What extra, surprise benefit for employers did the IRS reveal only in a telephone conversation with payroll industry stakeholders on June 11?


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