Form 941 Schedule R (2020)

What Is A Schedule R Form 941

Schedule R Form 941 is another document used with IRS Form 941, the Employer’s Quarterly Federal Tax Return. This additional document, known as Schedule R, is utilized explicitly by employers who have entrusted a third-party payer, such as a payroll service provider, to file Form 941 on their behalf. It provides a detailed breakdown of each client's employment tax liabilities and payments. It's essential for third-party payers who are reporting for multiple employers.

When to Use Form 941 Schedule R

Employers or agents should use Form 941 Schedule R in the following situations:

• If you are a third-party payer filing aggregate Form 941 returns, Schedule R is mandated to segregate the tax information for each employer.
• If you are a home care service recipient and choose to report your home care service provider's employment taxes.
• When acting as an agent under section 3504, where the authority has been provided to perform acts such as withholding, reporting, and paying employment taxes.

How To Fill Out IRS Form 941 Schedule R

Completing the IRS Form 941 Schedule R requires precision and attention to detail. Let's go through a step-by-step guide to ensure accuracy:

• Step 1: At the top of the form, fill out the calendar year and quarter for which the form is being filed.
• Step 2: Provide the third-party payer’s EIN, name, and address.
• Step 3: Assign each client employer a unique client identification number.
• Step 4: For each employer, provide their name, EIN, and the total number of employees for the pay period, including the 12th day of the second month of each quarter.
• Step 5: Input wages, tips, and other compensation each employer pays. Step 6: Calculate and report the federal income tax withheld from each employer's employees.
• Step 7: Enter the amounts for each client relating to Social Security and Medicare taxes, both employee and employer portions.
• Step 8: Allocate any adjustments for fractions of cents, sick pay, tips, and group-term life insurance for each employer.
• Step 9: Include the Advanced Earned Income Credit (EIC) payment information if required.
• Step 10: Summarize the total amounts from all employers and reconcile this amount with the aggregated totals reported on Form 941.
• Step 11: Ensure that all relevant third-party sick pay and group-term life insurance cost amounts are disclosed.
• Step 12: Sign and date the form, certifying that the information provided is correct.

Where To File Form 941 Schedule R

To ensure proper processing, agents must file Form 941 Schedule R along with an aggregate Form 941, which is typically submitted to the Internal Revenue Service through the Electronic Federal Tax Payment System (EFTPS) by using the IRS e-file or by mailing to the address designated for the agency's geographic location found in the Form 941 instructions. If you choose to send it via mail, you must check the IRS website or the most recent Form 941 instructions to confirm the current mailing address, as these can change periodically. Keep a copy for your records, and remember that timely filing is crucial to avoid penalties.