Form 941 (Schedule R) - 2021

What Is Schedule R Form 941

Schedule R Form 941 is an integral Internal Revenue Service (IRS) document designed to provide a structured way for employers who use a third-party payer, such as a payroll service provider, to report their aggregated employee tax information. Specifically tailored for employers who utilize third-party payers, this schedule allows the reporting of individual totals for each employer for whom the third-party payer is filing an aggregate Form 941. The form seamlessly supplements Form 941, providing a detailed breakdown of reported wages, tips, and other compensation.

When to Use Form 941 Schedule R

Employers must consider using Form 941 Schedule R in several situations:

• Third-Party Payers - When a third-party payer is filing an aggregate Form 941 report on behalf of one or more employers.
• Agent Under Section 3504 - If designated as an agent by the employer under IRS section 3504, the agent uses Schedule R to allocate taxes reported on the aggregate Form 941.
• Service Agreements - In certain service agreement contexts where the employer's payroll is handled by a third-party payer with an established service agreement necessitating the use of Form 941 Schedule R.

Employers not utilizing third-party payer services do not typically need to file Schedule R with their Form 941.

How To Fill Out IRS Form 941 Schedule R

Provide Basic Information:

Enter your Employer Identification Number (EIN) at the top of the form.

Write the Name as shown on Form 941 in the designated space.

Select the Report for a calendar year, which for this form is 2021.

Check the box for the quarter you report corresponding to the same quarter on Form 941.

Determine Your Filer Type:

Check one of the following boxes to indicate the type of filer you are: Section 3504 Agent, CPEO (Certified Professional Employer Organization), or Other Third Party.

Allocate Amounts to Clients:

In column (a), enter each client's EIN.

For CPEOs only, specify the type of wages in column (b).

Continue filling out columns (e) through (y) based on the corresponding lines from Form 941.

Calculate Subtotals:

On line 6, compute the subtotals for clients by adding the amounts from lines 1 through 5 for each column.

Signature and Submission:

Ensure the relevant party signs Form 941 (Schedule R).

Submit the form according to the guidelines provided by the IRS, typically with the aggregate Form 941.