2011 Form 941 Released

March 24 2011

The IRS has released the Employer’s Quarterly Federal Income Tax return for 2011, along with the Schedule R, Allocation Schedule for Aggregate Form 941 Filers.  Form 941 can be found on the IRS website.

At this time, the new instructions have not been released, but here’s what is new on the form to be used for filing Quarter 1, 2011 Federal taxes:

Lines 5a, taxable social security wages changed from .124 multiplier to .104

Line 5b, taxable social security tips changed from .124 multiplier to .104

Line 5e added tax due on unreported tips.  Report the unreported tips by employees after receiving a Notice and Demand from the IRS

Lines 6a – 6d have been shaded for reservation of future use.  These are the lines previously used for the Hire Act reporting

Lines 7a – 10 have been renumbered

  • Lines 7a, 7b & 7c, originally used to report quarter adjustments of cents, sick pay, tips and group term life insurance, have been renumbered as lines 7 – 9
  • Line 8 was originally used for total taxes after adjustments and has been renumbered as line 10.

  • Lines 9 and 10 were previously used for advance earned income credit and total taxes after adjustment of EIC; AEIC was repealed as of 1/1/2011.
  • Lines 12c and 12d have been eliminated.  These lines were previously used to report 2nd quarter number of HIRE Act qualified employees paid exempt wages and tips for March 16 – 31, 2010 and exempt wages and tips paid to qualified employees March 19 – 31, 2010.
  • Line 16 is used to report the state where the unemployment tax deposits were made.

Click here for further information on Form 940 or All Upcoming Changes for Payroll in 2012.