Revised IRS Form 941 for Q2 2021

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New IRS Form 941 for the 2nd Quarter of 2021

Updated on July 05, 2021 - 10:30 AM by Admin, TaxBandits

Form 941 for 2021

One of the biggest challenges faced by employers and tax professionals over the past year is adapting to the many changes made to Form 941, the Employer’s Quarterly Federal Tax Return. Due to the ongoing pandemic, the IRS has adjusted this form on an almost quarterly basis to reflect the tax relief and legislation passed to help small businesses. The IRS released the final version for the Revised Form 941 for second quarter of 2021.

In addition to these changes, Form 941 Worksheet 1 for 2021 has also changed for the second quarter. New worksheets are added and employers should use this for the 2nd quarter. TaxBandits supports the Worksheet calculations for easy filing.

In this section we will cover the following topics:

1. Overview of the Form 941 Changes

Many of the changes to the IRS Form 941 for the second quarter are in response to the American Rescue Plan, passed earlier this year. One of the most noticeable changes to the form are the lines that capture information related to the COBRA Premium Assistance Credit. There are also some changes due to the extension and amendment of the qualified sick and family leave credit and employee retention credit.

2. Line by Line changes to the Form 941 Second Quarter of 2021

The following lines have been either added or edited on the Form 941 for the second quarter.

As the IRS released the finalized version of Form 941 for the Q2 2021, it can easily e-filed with TaxBandits.
E-file Form 941 for 2021 with TaxBandits and file in simple steps.

  • Lines 5a, 5a(i), and 5(ii)

    While Lines 5a, 5a(i), and 5(ii) are the same on the Q2 Form 941, there is an asterisk by each. In a box off to the side the IRS explains why these asterisks are there. The IRS advises employers to include taxable qualified sick and family leave wages taken after March 31, 2021 on 5a. However, employers should only enter qualified sick and family wages that were paid out after March 31, 2020 for leave taken before April 1, 2021.

    Lines 5a, 5a(i), and 5(ii)-Form 941 Q2 2021
  • Line 11 b

    Line 11b has been changed due to the amendments to sick and family leave wages. Line 11b originally reported the Nonrefundable portion of credit for qualified sick and family leave wages from Worksheet 1.

    It now reports the nonrefundable portion of credit for qualified sick and family leave wages for leave taken before April 1, 2021.

    Line 11 b - Form 941 Q2 2021
  • Line 11 d

    Line 11d was used to report the total nonrefundable credits by adding up lines 11a, 11b, and 11c for the last quarter. In the new draft, Line 11d will report the nonrefundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021.

    Line 11 d - Form 941 Q2 2021
  • Line 11e

    Line 11e is a completely new line, this line will report the nonrefundable portion of COBRA premium assistance credit.

    Line 11 e - Form 941 Q2 2021
  • Line 11f

    Line 11f is also a new line, this reports the number of individuals provided COBRA premium assistance.

    Line 11 f - Form 941 Q2 2021
  • Line 11g

    Another new line is Line 11g- Total nonrefundable credits. Add line 11a, 11b, 11c, 11d, and 11e.

    Line 11 g - Form 941 Q2 2021
  • Line 13c

    Line 13c has been updated to report the refundable portion of credit for qualified sick and family leave wages for leave taken before April 1, 2021.

    Line 13c - Form 941 Q2 2021
  • Line 13e

    Line 13e has been updated to report the refundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021.

    Line 13e - Form 941 Q2 2021
  • Line 13f

    Line 13f has been changed. Instead of entering the Total advances received from filing Form(s) 7200 for the quarter, employees will enter the refundable portion of COBRA premium assistance credit.

    Line 13f - Form 941 Q2 2021
  • Line 13g

    Line 13g still reports the total deposits and refundable credits, however now employers will calculate this amount by adding Lines 13a, 13c, 13d, 13e, and 13f.

    Line 13g - Form 941 Q2 2021
  • Line 13h

    Line 13h will be used to report the total advances received from filing Form(s) 7200 for the quarter.

    Line 13h - Form 941 Q2 2021
  • Line 13i

    Line 13i will be used to calculate the Total deposits and refundable credits less advances.

    Line 13i - Form 941 Q2 2021
  • Line 14

    Line 14 is still used for the balance Due, however, lines 12 and 13i are now used to calculate this amount.

    Line 14 - Form 941 Q2 2021
  • Line 15

    Line 15 is still used to report any overpayment, however lines 12 and 13i are also used to calculate this amount.

    Line 15 - Form 941 Q2 2021
  • Line 18

    Line 18 has been added to indicate If you’re eligible for the employee retention credit solely because your business is a recovery startup business.

    Line 18 - Form 941 Q2 2021
  • Line 19 and 20

    Lines 19 and 20 now refer specifically to qualified health plan expenses allocable to qualified sick and family leave taken before or after April 1, 2021.

    Line 19 and 20 - Form 941 Q2 2021

In addition, the following lines are new to the form for the second quarter of 2021:

  • Line 23

    Qualified sick leave wages for leave taken after March 31, 2021

    Line 23 - Form 941 Q2 2021
  • Line 24

    Qualified health plan expenses allocable to qualified sick leave wages reported on line 23

    Line 24 - Form 941 Q2 2021
  • Line 25

    Amounts under certain collectively bargained agreements allocable to qualified sick leave wages reported on line 23

    Line 25 - Form 941 Q2 2021
  • Line 26

    Qualified family leave wages for leave taken after March 31, 2021

    Line 26 - Form 941 Q2 2021
  • Line 27

    Qualified health plan expenses allocable to qualified family leave wages reported on

    Line 27 - Form 941 Q2 2021
  • Line 28

    Amounts under certain collectively bargained agreements allocable to qualified family leave wages reported on line 26

    Line 28 - Form 941 Q2 2021

TaxBandits supports the e-filing of the updated Form 941 for second quarter 2021. File with TaxBandits and get the benefit of additional features such as schedule B and in-built Worksheet calculations.

Visit https://www.taxbandits.com/form-941/form-941-instructions/ to learn more about Form 941 instructions.

3. Deadline to file Form 941 for Q2, 2021

Since Form 941 is a quarterly form, there are four deadlines, all the 941 deadlines for 2021 can be found in this table. The next upcoming deadline for the second quarter is August 2, 2021.

Quarter Reporting Period Deadline
Quarter 1 Jan, Feb, and Mar April 30, 2021
Quarter 2 Apr, May, and Jun August 02, 2021
Quarter 3 Jul, Aug, and Sep November 01, 2021
Quarter 4 Oct, Nov, and Dec January 31, 2022

4. How to file Revised Form 941 for 2nd Quarter 2021?

Compared to paper filing your Form 941, e-filing of Form 941 is much easier and efficient. Not only can you expect much faster processing of your form by the IRS, but with TaxBandits you will get
instant status updates.

When e-filing with TaxBandits you can avoid many of the mistakes that are made on paper forms. We audit your form according to the IRS business rules to catch potential errors.

You can e-file your Form 941 with TaxBandits by following these simple steps.

TaxBandits also has some additional features such as Zero taxes filing, Schedule B and in-built Worksheet 1. Start to e-file Form 941 for Q2 2021 with TaxBandits.

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