The IRS has released a draft version of the revised Form 941 (https://www.irs.gov/pub/irs-dft/f941–dft.pdf) to be used by employers for third and fourth quarter 2020 payroll taxes. The form is updated to report the optional deferral of certain payroll taxes that runs September 1, 2020 to December 31, 2020. Employers may allow their employees to defer the employee portion of the social security taxes until first quarter 2021. The amount of social security tax deferred on Part I, Line 13b will be the total deferred amount (employer and employee portions combined). Employers will report the deferred amount of the employee share of social security taxes on Part 3, Line 24. This amount must be paid in by May 1, 2021. Employers may “opt-out” of this deferral program. Employers who allow employees to defer could be liable for the taxes due should the employee leave prior to the taxes being repaid.
Contact your Mitchell Wiggins team for assistance regarding the new form and the rules surrounding the deferral of payroll taxes.