The IRS changed Form 941 for the first quarter of 2022 and warns taxpayers not to use an earlier version of the form. The IRS also indicated there is going to be a different Form 941 every quarter of 2022.
Recall, Form 941, Employer’s Quarterly Federal Tax Return, is the federal form employers use to report income taxes, social security tax, or Medicare tax withheld from employee’s paychecks. The form also is used to report the employer’s portion of social security or Medicare tax employee wages, payroll taxes and information the IRS deems important. In general, if you pay employees (even yourself as an employee) then you will be required to use this form to report information to the IRS.
The key 2022 Q1 changes are:
- The social security wage base limit for 2022 is increased to $147,000 (up from $142,800).
- The Employee Retention Credit has expired.
- The Advance Payment of COVID-19 Credits on Form 7200, Advance Payment of Employer Credits Due to COVID-19, has expired.
- The credit for qualified sick and family leave credits is limited to employers that pay qualified sick and family leave wages in 2022 for leave taken after March 31, 2020 and before Oct. 1, 2021.
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Mechanical Changes to Form 941
| Form 941 Line No. | 2022 Q1 | 2021 Q4 |
| Report for this Quarter of 2022 Checkbox | Q2-Q4 grayed out
(Highlights more changes are coming) |
Q1 grayed out |
| Line 11c | Reserved for future use | Nonrefundable portion of employee retention credit |
| Line 13d | Reserved for future use | Reserved for future use
(Refundable portion of employee retention credit before being reserved) |
| Line 13h | Reserved for future use | Total advances received from filing Form(s) 7200 for the quarter |
| Line 13i | Reserved for future use | Total deposits and refundable credits less advances |
| Line 18 | Indicate if you are a seasonal employer and don’t have to file a return for every quarter of the year | Previously, two lines existed:
18a: Indicate if you are a seasonal employer and don’t have to file a return for every quarter of the year 18b: Indicate it you are eligible for the employee retention credit solely because your business is a recovery startup business |
| Line 21 | Reserved for future use | Qualified wages for the employee retention credit |
| Line 22 | Reserved for future use | Qualified health plan expenses for the employee retention credit |
| Worksheet 1 | Credit for qualified sick and family leave wages paid in 2022 for leave taken after March 31, 2020, and before April 1, 2021 | Credit for qualified sick and family leave wages for leave taken before April 1, 2021 |
| Worksheet 2 | Credit for qualified sick and family leave wages paid in 2022 for leave taken after March 31, 2021, and before October 1, 2021. | Employee Retention Credit for the Second Quarter of 2021 Only (Wages Paid After March 31, 2021, and Before July 1, 2021) |
| Worksheet 3 | COBRA Premium Assistance Credit | Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021 |
| Worksheet 4 | Deleted. | Employee Retention Credit for Third and Fourth Quarters of 2021 Only (Qualified Wages Paid After June 30, 2021) |
| Worksheet 5 | Deleted. | COBRA Premium Assistance Credit |
Employer Compliance & Form 941
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