The IRS has released a revised draft version of Form 941, Employer’s Quarterly Federal Tax Return, reflecting further new and updated payroll tax credits.
The latest draft revisions mostly incorporate provisions of the American Rescue Plan Act (ARPA). For example, ARPA provided a temporary 100% subsidy for premiums for COBRA continuation coverage, paid by employers or other taxpayers to whom eligible individuals would otherwise pay the premiums. That aid is in turn reimbursable by a refundable credit against the employer’s portion of Medicare tax.
The draft Form 941 accordingly contains new lines for employers to enter nonrefundable and refundable portions of the COBRA premium assistance credit as well as the number of persons provided COBRA premium assistance. Learn more.
To comment on the draft revisions, visit irs.gov/formscomments.