Form 941 returns

Security

Form 941 returns report the payroll taxes withheld by an employer from employees' pay checks each quarter. Returns also show the amount of tax deposits made to the federal government for the quarter and figure any shortage or overpayment. ActivityHD's 941 return feature compiles the relevant data and produces a 941 return record. In addition, ActivityHD provides a process for printing 941 returns for submission to the IRS.

Expand this link to view an annotated 941 form that indicates the sources from which form data is derived.

Generate a 941 return

In the Navigation pane, highlight the Payroll/Human Resources > Government > Form 941 Returns folder.
Click . The Generate Form 941 wizard starts.
On the Options tab in the Employer field, select the export employer to generate the 941 file for.
In the Deposit Schedule field, select the frequency of your organization's tax deposits. Your options are:
- Monthly
- Semiweekly. You must make semiweekly deposits if you reported more than $50,000 in taxes during the lookback period (July 1 of the second preceding calendar year through June 30 of the preceding calendar year), or if you are a monthly schedule depositor that accumulated $100,000 in tax liability on any day during the deposit period (see $100,000 Next-Day Deposit Rule in Circular E).
Enter the Year you are reporting on.
Select the Quarter you are reporting on.
In the Payroll Tax Credit (Attach Form 8974) field, enter the amount for the small business payroll tax credit for increasing research activities from line 12 of Form 8974, if applicable. If you enter an amount in this field, you must attach Form 8974 to the Form 941 return.
The options in the Special Situations section apply only if your business has closed or you are a seasonal employer.
- Business has closed or is no longer paying wages. Mark this checkbox if the statement is true. If you mark the checkbox, the Date wages were last paid field is enabled. Enter the last date on which your business paid wages to its employees.
- Business is a seasonal employer that does not have to file every quarter. Mark this checkbox if the statement is true.
In the Overpayment field, select how you want the IRS to handle excess tax payments. Your options are:
- Apply to Next Return
- Send a Refund
If you want to Allow a third party to discuss this return with the IRS, mark the checkbox in the Third Party Designee section. The authorization is effective for one year from the 941 return due date and allows the designee to provide missing information from your return, call the IRS about your return, and respond to IRS notices that you have shared with the third party designee. If you mark the checkbox, the remaining fields in the section are enabled.
1. Enter the Name of the third party designee.
2. Enter the third party designee's Phone number.
3. Enter the third party designee's personal identification number (PIN). The PIN is a five-digit number chosen by the designee.
Click Next >>. ActivityHD prompts you to confirm that you want to generate the 941 return.
Click Yes. ActivityHD informs you when the process is complete and reports its results.
Click Next >>. ActivityHD shows the return that was created.

At this point, you can double-click the return in the right pane to drill down to the Form 941 Return window or you can print the return.
When you finish viewing or working with the return, click Finish.

SPECIAL: Generate a 941 return for quarters affected by COVID-19 (Quarters 2, 3, 4 of 2022)

Before generating 941s for quarter 2, 3, or 4 of 2022, ensure that the following built-in groups are assigned to the appropriate segment items:

COVIDQualifiedFamily. COVID Qualified family leave wages
COVIDQualifiedSick. COVID Qualified sick leave wages

In the Navigation pane, highlight the Payroll/Human Resources > Government > Form 941 Returns folder.
Click . The Generate Form 941 wizard starts.
On the Options tab in the Employer field, select the export employer to generate the 941 file for.
In the Deposit Schedule field, select the frequency of your organization's tax deposits. Your options are:
- Monthly
- Semiweekly. You must make semiweekly deposits if you reported more than $50,000 in taxes during the lookback period (July 1 of the second preceding calendar year through June 30 of the preceding calendar year), or if you are a monthly schedule depositor that accumulated $100,000 in tax liability on any day during the deposit period (see $100,000 Next-Day Deposit Rule in Circular E).
Enter the Year "2022".
Select the Quarter you are reporting on. These instructions apply to quarters 2, 3, and 4 of 2022 only.
In the Payroll Tax Credit (Attach Form 8974) field, enter the amount for the small business payroll tax credit for increasing research activities from line 12 of Form 8974, if applicable.
The options in the Special Situations section apply only if your business has closed or you are a seasonal employer.
- Business has closed or is no longer paying wages. Mark this checkbox if the statement is true. If you mark the checkbox, the Date wages were last paid field is enabled. Enter the last date on which your business paid wages to its employees.
- Business is a seasonal employer that does not have to file every quarter. Mark this checkbox if the statement is true.
In the Overpayment field, select how you want the IRS to handle excess tax payments. Your options are:
- Apply to Next Return
- Send a Refund
If you want to Allow a third party to discuss this return with the IRS, mark the checkbox in the Third Party Designee section. The authorization is effective for one year from the 941 return due date and allows the designee to provide missing information from your return, call the IRS about your return, and respond to IRS notices that you have shared with the third party designee. If you mark the checkbox, the remaining fields in the section are enabled.
1. Enter the Name of the third party designee.
2. Enter the third party designee's Phone number.
3. Enter the third party designee's personal identification number (PIN). The PIN is a five-digit number chosen by the designee.
Select the COVID-19 tab.
In the 11b. Qualified sick and family leave before 4/1/2021 field, enter the nonrefundable portion of the credit for qualified sick and family leave wages before 4/1/2021 from Worksheet 1, line 2j.
In the 11d. Qualified sick and family leave after 3/31/2021 and before 10/1/2021 field, enter the nonrefundable portion of the credit for qualified sick and family leave wages after 3/31/2021 and before 10/1/2021 from Worksheet 2, line 2p.
In the 13c. Refundable sick and family leave credit before 4/1/2021 field, enter the refundable portion of the credit for qualified sick and family leave wages before 4/1/2021 from Worksheet 1, line 2k.
In the 13e. Refundable sick and family leave credit after 3/31/2021 and before 10/1/2021 field, enter the refundable portion of the credit for qualified sick and family leave wages taken after 3/31/2021 and before 10/1/2021 from Worksheet 2, line 2q.
In the 19. Health plan allocable to sick leave wages before 4/1/2021 field, enter the amount of qualified health plan expenses allocable to qualified sick leave wages for leave taken before 4/1/2021 from Worksheet 1, line 2b.
In the 20. Health plan allocable to family leave wages field, enter the amount of qualified health plan expenses allocable to qualified family leave wages for leave taken before 4/1/2021 from Worksheet 1, line 2f.
In the 23. Qualified sick leave wages after 3/31/2021 and before 10/1/2021 field, enter the qualified sick leave wages for leave taken after 3/31/2021 and before 10/1/2021 from Worksheet 2, line 2a.
In the 24. Health plan allocable to sick leave wages on line 23 field, enter the qualified health plan expenses allocable to qualified sick leave wages reported on line 23. This is the amount from Worksheet 2, line 2b.
In the 25. Collective bargaining allocable to sick leave wages on line 23 field, enter the collectively bargained defined benefit pension plan contributions and collectively bargained apprenticeship program contributions allocable to sick leave wages reported on line 23. This is the amount from Worksheet 2, line 2c.
In the 26. Qualified family leave wages after 3/31/2021 and before 10/1/2021 field, enter the qualified family leave wages paid to your employees for leave taken after 3/31/2021 and before 10/1/2021 from Worksheet 2, line 2g.
In the 27. Health plan allocable to family leave wages on line 26 field, enter the qualified health plan expenses allocable to qualified family leave wages reported on line 26. This is the amount from Worksheet 2, line 2h.
In the 28. Collective bargaining allocable to family leave wages on line 26 field, enter the collectively bargained defined benefit pension plan contributions and collectively bargained apprenticeship program contributions allocable to qualified family leave wages reported on line 26. This is the amount from Worksheet 2, line 2i.
Click Next >>. ActivityHD prompts you to confirm that you want to generate the 941 return.
Click Yes. ActivityHD informs you when the process is complete and reports its results.
Click Next >>. ActivityHD shows the return that was created.

At this point, you can double-click the return in the right pane to drill down to the Form 941 Return window or you can print the return.
When you finish viewing or working with the return, click Finish.

SPECIAL: Generate/maintain a 941 return for past COVID-affected quarters

SPECIAL: Use the Form 941 COVID Worksheet to determine manual entry values (Q2 2020)

Version 7.41 of ActivityHD introduced the COVID-19 fields for Form 941. While Qualified Sick Leave and Qualified Family Leave values are calculated in the Form 941 Generation process, the remaining COVID-19 values must be entered manually. An export control is available to assist in determining these values.

Setup

If you do not already have a TotalHours group, create one. Alternatively, you can modify the XML file imported in the next step to replace TotalHours with an appropriate group.
Import the Form 941 COVID Worksheet 1.XML export control from your distribution. The export control is located in the ...\Extras\Payroll\Export Controls\ folder.
A built-in COVIDEmpRetention group is available to track Employee Retention Credit wages during this time. If you paid any Employee Retention Credit wages, assign this group to the appropriate segment items.

Create the totals file

Follow these instructions to prepare the totals file with the additional COVID-19 information:

In the Navigation pane, highlight the Payroll/Human Resources > Employees folder.
Right-click the Employees folder and select Select and Create Totals File. The Employee Create Totals wizard starts.
On the Standard Options tab, specify the following:
- Filename. Specify a file name with a .csv extension.
- Export Control. Select the "Form 941 COVID Worksheet 1" file you imported.
- Begin/End Dates. Specify the begin and end dates of the quarter you are reporting on.
- Date. Limit by "Check Date".
On the Additional Options tab, specify the following:
- Enter March 13, 2020. Enter 3/13/2020.
- Enter March 31, 2020. Enter 3/31/2020.
- Credit Form 8974. Enter the value from Form 8974.
- Credit Form 5884-C. Enter the value from Form 5884-C.
Click Create File.
Open the output file and review the totals. Notice that the file includes a value for every line on Form 941, Worksheet 1. The column headings indicate where to enter the values in the Generate Form 941 process.

Calculations

The following table lists the Form 941, Worksheet 1 steps and describes how their values are calculated.

Step #	Description Calculation
1	Determine the employer share of social security tax this quarter after it is reduced by any credit claimed on Form 8974 and any credit to be claimed on Form 5884-C
	These fields are calculated using the same formula as the Generate Form 941 process. The values for the Form 8974 and Form 5884-C credits come from the entries on the Additional Options tab of the Employee Create Total Files wizard.
2	Figure the sick and family leave credit
	According to the IRS, employers may use "any reasonable method" to determine the amount of health expenses that are allocable to COVID wages. (See question 33 of this FAQ.) The export control uses the following formula for each affected employee: Health expense X COVID hours / Total hours The components of the formula are calculated as follows: Health expense = the total Result amount of the check lines in the built-in ERSponsoredHlthCost group. COVID hours = the total Source amount of the check lines in the COVIDQualifiedSick or COVIDQualifiedFamily group. Total hours = the total Source amount of the check lines in the TotalHours group (or whichever group you specified to provide total hours). Note The values of lines 2a(i) and 2e(i) for sick or family leave wages not included on Form 941 are zero. The source expression for built-in segment item Tax:SocSecER was written to avoid this issue.
3	Figure the employee retention credit
	The same formula used in Step 2 is applied in Step 3, except that the built-in COVIDEmpRetention group is used in place of COVIDQualifiedSick or COVIDQualifiedFamily. Lines 3c and 3d use the same formula; however, the calculation of health expense, employee retention hours, and total hours is limited to checks dated between March 13, 2020 and March 31, 2020. The values for lines 3c and 3d are zero except in quarter 2.

SPECIAL: Generate a 941 return for quarters affected by COVID-19 (2020)

Before generating 941s for quarters 2 through 4 of 2020, ensure that the following built-in groups are assigned to the appropriate segment items:

COVIDEmpRetention. COVID Employee Retention Credit wages
COVIDQualifiedFamily. COVID Qualified family leave wages
COVIDQualifiedSick. COVID Qualified sick leave wages

In the Navigation pane, highlight the Payroll/Human Resources > Government > Form 941 Returns folder.
Click . The Generate Form 941 wizard starts.
On the Options tab in the Employer field, select the export employer to generate the 941 file for.
In the Deposit Schedule field, select the frequency of your organization's tax deposits. Your options are:
- Monthly
- Semiweekly. You must make semiweekly deposits if you reported more than $50,000 in taxes during the lookback period (July 1 of the second preceding calendar year through June 30 of the preceding calendar year), or if you are a monthly schedule depositor that accumulated $100,000 in tax liability on any day during the deposit period (see $100,000 Next-Day Deposit Rule in Circular E).
Enter the Year "2020".
Select the Quarter you are reporting on. For 2020, the COVID-19 changes apply to quarters 2, 3, and 4 only.
The options in the Special Situations section apply only if your business has closed or you are a seasonal employer.
- Business has closed or is no longer paying wages. Mark this checkbox if the statement is true. If you mark the checkbox, the Date wages were last paid field is enabled. Enter the last date on which your business paid wages to its employees.
- Business is a seasonal employer that does not have to file every quarter. Mark this checkbox if the statement is true.
In the Overpayment field, select how you want the IRS to handle excess tax payments. Your options are:
- Apply to Next Return
- Send a Refund
If you want to Allow a third party to discuss this return with the IRS, mark the checkbox in the Third Party Designee section. The authorization is effective for one year from the 941 return due date and allows the designee to provide missing information from your return, call the IRS about your return, and respond to IRS notices that you have shared with the third party designee. If you mark the checkbox, the remaining fields in the section are enabled.
1. Enter the Name of the third party designee.
2. Enter the third party designee's Phone number.
3. Enter the third party designee's personal identification number (PIN). The PIN is a five-digit number chosen by the designee.
Select the COVID-19 tab.
In the 11b. Qualified sick and family leave field, enter the nonrefundable portion of the credit for qualified sick and family leave wages from Worksheet 1.
In the 11c. Employee retention credit field, enter the nonrefundable portion of the employee retention credit from Worksheet 1.
Q2: In the 13b. Deferred employer social security field, enter the deferred amount of the employer's share of social security tax.

Q3-4: In the 13b. Deferred social security field, enter the deferred amount of the employer's plus employees' share of social security tax.
In the 13c. Refundable sick and family leave credit field, enter the refundable portion of the credit for qualified sick and family leave wages from Worksheet 1.
In the 13d. Refundable employee retention credit field, enter the refundable portion of the employee retention credit from Worksheet 1.
In the 13f. Advances from this quarter's Form(s) 7200 field, enter the total amount of advances received from filing Form(s) 7200 for the quarter.
In the 19. Health plan allocable to sick leave wages field, enter the amount of qualified health plan expenses allocable to qualified sick leave wages.
In the 20. Health plan allocable to family leave wages field, enter the amount of qualified health plan expenses allocable to qualified family leave wages.
In the 21. Employee retention credit (ERC) wages field, enter the amount of qualified wages for the employee retention credit.
In the 22. Health plan allocable to ERC wages field, enter the qualified health plan expenses allocable to wages reported on line 21.
In the 23. Form 5884-C credit field, enter the credit amount from line 11 of Form 5884-C for this quarter.
Q2: In the 24. March 13-31, 2020 wages for ERC field, enter the qualified wages paid between March 13 and March 31, 2020 for the employee retention credit.

Q3-4: In the 24. Deferred employee social security field, enter the deferred amount of employees' social security tax.
Q2: In the 25. Health plan allocable to March 13-31 wages field, enter the qualified health plan expenses allocable to wages reported on line 24.

Q3-4: As indicated, the field labeled 25. Reserved for future use does not require input. Continue at the next step.
Click Next >>. ActivityHD prompts you to confirm that you want to generate the 941 return.
Click Yes. ActivityHD informs you when the process is complete and reports its results.
Click Next >>. ActivityHD shows the return that was created.

At this point, you can double-click the return in the right pane to drill down to the Form 941 Return window or you can print the return.
When you finish viewing or working with the return, click Finish.

SPECIAL: Generate a 941 return for quarter 1 2021 affected by COVID-19

Before generating 941s for quarter 1 of 2021, ensure that the following built-in groups are assigned to the appropriate segment items:

COVIDEmpRetention. COVID Employee Retention Credit wages
COVIDQualifiedFamily. COVID Qualified family leave wages
COVIDQualifiedSick. COVID Qualified sick leave wages

In the Navigation pane, highlight the Payroll/Human Resources > Government > Form 941 Returns folder.
Click . The Generate Form 941 wizard starts.
On the Options tab in the Employer field, select the export employer to generate the 941 file for.
In the Deposit Schedule field, select the frequency of your organization's tax deposits. Your options are:
- Monthly
- Semiweekly. You must make semiweekly deposits if you reported more than $50,000 in taxes during the lookback period (July 1 of the second preceding calendar year through June 30 of the preceding calendar year), or if you are a monthly schedule depositor that accumulated $100,000 in tax liability on any day during the deposit period (see $100,000 Next-Day Deposit Rule in Circular E).
Enter the Year "2021".
In the Quarter field, select "Jan-Mar".
In the Payroll Tax Credit (Attach Form 8974) field, enter the amount for the small business payroll tax credit for increasing research activities from line 12 of Form 8974, if applicable.
The options in the Special Situations section apply only if your business has closed or you are a seasonal employer.
- Business has closed or is no longer paying wages. Mark this checkbox if the statement is true. If you mark the checkbox, the Date wages were last paid field is enabled. Enter the last date on which your business paid wages to its employees.
- Business is a seasonal employer that does not have to file every quarter. Mark this checkbox if the statement is true.
In the Overpayment field, select how you want the IRS to handle excess tax payments. Your options are:
- Apply to Next Return
- Send a Refund
If you want to Allow a third party to discuss this return with the IRS, mark the checkbox in the Third Party Designee section. The authorization is effective for one year from the 941 return due date and allows the designee to provide missing information from your return, call the IRS about your return, and respond to IRS notices that you have shared with the third party designee. If you mark the checkbox, the remaining fields in the section are enabled.
1. Enter the Name of the third party designee.
2. Enter the third party designee's Phone number.
3. Enter the third party designee's personal identification number (PIN). The PIN is a five-digit number chosen by the designee.
Select the COVID-19 tab.
In the 11b. Qualified sick and family leave field, enter the nonrefundable portion of the credit for qualified sick and family leave wages from Worksheet 1.
In the 11c. Employee retention credit field, enter the nonrefundable portion of the employee retention credit from Worksheet 1.
In the 13c. Refundable sick and family leave credit field, enter the refundable portion of the credit for qualified sick and family leave wages from Worksheet 1.
In the 13d. Refundable employee retention credit field, enter the refundable portion of the employee retention credit from Worksheet 1.
In the 13f. Advances from this quarter's Form(s) 7200 field, enter the total amount of advances received from filing Form(s) 7200 for the quarter.
In the 19. Health plan allocable to sick leave wages field, enter the amount of qualified health plan expenses allocable to qualified sick leave wages.
In the 20. Health plan allocable to family leave wages field, enter the amount of qualified health plan expenses allocable to qualified family leave wages.
In the 21. Employee Retention Credit (ERC) Wages field, enter the amount of qualified wages for the employee retention credit.
In the 22. Health plan allocable to ERC wages field, enter the qualified health plan expenses allocable to wages reported on line 21.
In the 23. Form 5884-C credit field, enter the credit amount from line 11 of Form 5884-C for this quarter.
Click Next >>. ActivityHD prompts you to confirm that you want to generate the 941 return.
Click Yes. ActivityHD informs you when the process is complete and reports its results.
Click Next >>. ActivityHD shows the return that was created.

At this point, you can double-click the return in the right pane to drill down to the Form 941 Return window or you can print the return.
When you finish viewing or working with the return, click Finish.

SPECIAL: Generate a 941 return for quarters affected by COVID-19 (Quarters 2, 3, 4 of 2021)

Before generating 941s for quarters 2 through 4 of 2021, ensure that the following built-in groups are assigned to the appropriate segment items:

COVIDEmpRetention. COVID Employee Retention Credit wages
COVIDQualifiedFamily. COVID Qualified family leave wages
COVIDQualifiedSick. COVID Qualified sick leave wages

In the Navigation pane, highlight the Payroll/Human Resources > Government > Form 941 Returns folder.
Click . The Generate Form 941 wizard starts.
On the Options tab in the Employer field, select the export employer to generate the 941 file for.
In the Deposit Schedule field, select the frequency of your organization's tax deposits. Your options are:
- Monthly
- Semiweekly. You must make semiweekly deposits if you reported more than $50,000 in taxes during the lookback period (July 1 of the second preceding calendar year through June 30 of the preceding calendar year), or if you are a monthly schedule depositor that accumulated $100,000 in tax liability on any day during the deposit period (see $100,000 Next-Day Deposit Rule in Circular E).
Enter the Year "2021".
Select the Quarter you are reporting on. These instructions apply to quarters 2, 3, and 4 of 2021 only.
In the Payroll Tax Credit (Attach Form 8974) field, enter the amount for the small business payroll tax credit for increasing research activities from line 12 of Form 8974, if applicable.
The options in the Special Situations section apply only if your business has closed or you are a seasonal employer.
- Business has closed or is no longer paying wages. Mark this checkbox if the statement is true. If you mark the checkbox, the Date wages were last paid field is enabled. Enter the last date on which your business paid wages to its employees.
- Business is a seasonal employer that does not have to file every quarter. Mark this checkbox if the statement is true.
In the Overpayment field, select how you want the IRS to handle excess tax payments. Your options are:
- Apply to Next Return
- Send a Refund
If you want to Allow a third party to discuss this return with the IRS, mark the checkbox in the Third Party Designee section. The authorization is effective for one year from the 941 return due date and allows the designee to provide missing information from your return, call the IRS about your return, and respond to IRS notices that you have shared with the third party designee. If you mark the checkbox, the remaining fields in the section are enabled.
1. Enter the Name of the third party designee.
2. Enter the third party designee's Phone number.
3. Enter the third party designee's personal identification number (PIN). The PIN is a five-digit number chosen by the designee.
Select the COVID-19 tab.
In the 11b. Qualified sick and family leave before 4/1/2021 field, enter the nonrefundable portion of the credit for qualified sick and family leave wages before 4/1/2021 from Worksheet 1, line 2j.
In the 11c. Employee retention credit field, enter the nonrefundable portion of the employee retention credit from Worksheet 2, line 2h for quarter 2 or from Worksheet 4, line 2h for quarters 3 and 4.
In the 11d. Qualified sick and family leave after 3/31/2021 field, enter the nonrefundable portion of the credit for qualified sick and family leave wages after 3/31/2021 from Worksheet 3, line 2r.
In the 11e. COBRA premium assistance field, enter the amount of COBRA premium assistance provided in the quarter from Worksheet 5, line 2g.
In the 11f. Number of individuals with COBRA premium assistance field, enter the number of individuals provided COBRA premium assistance during the quarter.
In the 13c. Refundable sick and family leave credit before 4/1/2021 field, enter the refundable portion of the credit for qualified sick and family leave wages before 4/1/2021 from Worksheet 1, line 2k.
In the 13d. Refundable employee retention credit field, enter the refundable portion of the employee retention credit from Worksheet 2, line 2i for quarter 2 or from Worksheet 4, line 2i for quarters 3 and 4.
In the 13e. Refundable sick and family leave credit after 3/31/2021 field, enter the refundable portion of the credit for qualified sick and family leave wages taken after 3/31/2021 from Worksheet 3, line 2s.
In the 13f. COBRA premium assistance credit field, enter the refundable portion of the COBRA premium assistance credit from Worksheet 5, line 2h.
In the 13h. Advances from this quarter's Form(s) 7200 field, enter the total advances received from filing Form(s) 7200 for the quarter. Do not include advances requested but not received by the time you file Form 941.
If you selected quarter 3 or quarter 4 of 2021 on the Options tab, the 18b. Business eligible for ERC solely because it's a recovery startup checkbox is visible. Mark the checkbox if you qualify for the employee retention credit solely because your business is a recovery startup business.
In the 19. Health plan allocable to sick leave wages before 4/1/2021 field, enter the amount of qualified health plan expenses allocable to qualified sick leave wages for leave taken before 4/1/2021 from Worksheet 1, line 2b.
In the 20. Health plan allocable to family leave wages field, enter the amount of qualified health plan expenses allocable to qualified family leave wages for leave taken before 4/1/2021 from Worksheet 1, line 2f.
In the 21. Employee retention credit (ERC) wages field, enter the amount of qualified wages for the employee retention credit from Worksheet 2, line 2a for quarter 2 or from Worksheet 4, line 2a for quarters 3 and 4.
In the 22. Health plan allocable to ERC wages field, enter the qualified health plan expenses allocable to wages from Worksheet 2, line 2b for quarter 2 or from Worksheet 4, line 2b for quarters 3 and 4.
In the 23. Qualified sick leave wages after 3/31/2021 field, enter the qualified sick leave wages for leave taken after 3/31/2021 from Worksheet 3, line 2a.
In the 24. Health plan allocable to sick leave wages on line 23 field, enter the qualified health plan expenses allocable to qualified sick leave wages reported on line 23. This is the amount from Worksheet 3, line 2b
In the 25. Collective bargaining allocable to sick leave wages on line 23 field, enter the collectively bargained defined benefit pension plan contributions and collectively bargained apprenticeship program contributions allocable to sick leave wages reported on line 23. This is the amount from Worksheet 3, line 2c.
In the 26. Qualified family leave wages after 3/31/2021 field, enter the qualified family leave wages paid to your employees for leave taken after 3/31/2021 from Worksheet 3, line 2g.
In the 27. Health plan allocable to family leave wages on line 26 field, enter the qualified health plan expenses allocable to qualified family leave wages reported on line 26. This is the amount from Worksheet 3, line 2h.
In the 28. Collective bargaining allocable to family leave wages on line 26 field, enter the collectively bargained defined benefit pension plan contributions and collectively bargained apprenticeship program contributions allocable to qualified family leave wages reported on line 26. This is the amount from Worksheet 3, line 2i.
Click Next >>. ActivityHD prompts you to confirm that you want to generate the 941 return.
Click Yes. ActivityHD informs you when the process is complete and reports its results.
Click Next >>. ActivityHD shows the return that was created.

At this point, you can double-click the return in the right pane to drill down to the Form 941 Return window or you can print the return.
When you finish viewing or working with the return, click Finish.

SPECIAL: Generate a 941 return for quarters affected by COVID-19 (Quarter 1 of 2022)

Before generating 941s for quarter 1 of 2022, ensure that the following built-in groups are assigned to the appropriate segment items:

COVIDQualifiedFamily. COVID Qualified family leave wages
COVIDQualifiedSick. COVID Qualified sick leave wages

Note

The Employee Retention Credit expired as of 10/1/2021 except for recovery startup businesses. The credit expired entirely as of 1/1/2022. As a result, the COVIDEmpRetention group is not applicable for the first quarter of 2022.

In the Navigation pane, highlight the Payroll/Human Resources > Government > Form 941 Returns folder.
Click . The Generate Form 941 wizard starts.
On the Options tab in the Employer field, select the export employer to generate the 941 file for.
In the Deposit Schedule field, select the frequency of your organization's tax deposits. Your options are:
- Monthly
- Semiweekly. You must make semiweekly deposits if you reported more than $50,000 in taxes during the lookback period (July 1 of the second preceding calendar year through June 30 of the preceding calendar year), or if you are a monthly schedule depositor that accumulated $100,000 in tax liability on any day during the deposit period (see $100,000 Next-Day Deposit Rule in Circular E).
Enter the Year "2022".
Select the Quarter you are reporting on. These instructions apply to quarter 1 of 2022 only.
In the Payroll Tax Credit (Attach Form 8974) field, enter the amount for the small business payroll tax credit for increasing research activities from line 12 of Form 8974, if applicable.
The options in the Special Situations section apply only if your business has closed or you are a seasonal employer.
- Business has closed or is no longer paying wages. Mark this checkbox if the statement is true. If you mark the checkbox, the Date wages were last paid field is enabled. Enter the last date on which your business paid wages to its employees.
- Business is a seasonal employer that does not have to file every quarter. Mark this checkbox if the statement is true.
In the Overpayment field, select how you want the IRS to handle excess tax payments. Your options are:
- Apply to Next Return
- Send a Refund
If you want to Allow a third party to discuss this return with the IRS, mark the checkbox in the Third Party Designee section. The authorization is effective for one year from the 941 return due date and allows the designee to provide missing information from your return, call the IRS about your return, and respond to IRS notices that you have shared with the third party designee. If you mark the checkbox, the remaining fields in the section are enabled.
1. Enter the Name of the third party designee.
2. Enter the third party designee's Phone number.
3. Enter the third party designee's personal identification number (PIN). The PIN is a five-digit number chosen by the designee.
Select the COVID-19 tab.
In the 11b. Qualified sick and family leave before 4/1/2021 field, enter the nonrefundable portion of the credit for qualified sick and family leave wages before 4/1/2021 from Worksheet 1, line 2j.
In the 11d. Qualified sick and family leave after 3/31/2021 and before 10/1/2021 field, enter the nonrefundable portion of the credit for qualified sick and family leave wages after 3/31/2021 and before 10/1/2021 from Worksheet 2, line 2p.
In the 11e. COBRA premium assistance field, enter the amount of COBRA premium assistance provided in the quarter from Worksheet 3, line 2e.
In the 11f. Number of individuals with COBRA premium assistance field, enter the number of individuals provided COBRA premium assistance during the quarter.
In the 13c. Refundable sick and family leave credit before 4/1/2021 field, enter the refundable portion of the credit for qualified sick and family leave wages before 4/1/2021 from Worksheet 1, line 2k.
In the 13e. Refundable sick and family leave credit after 3/31/2021 and before 10/1/2021 field, enter the refundable portion of the credit for qualified sick and family leave wages taken after 3/31/2021 and before 10/1/2021 from Worksheet 2, line 2q.
In the 13f. COBRA premium assistance credit field, enter the refundable portion of the COBRA premium assistance credit from Worksheet 3, line 2f.
In the 19. Health plan allocable to sick leave wages before 4/1/2021 field, enter the amount of qualified health plan expenses allocable to qualified sick leave wages for leave taken before 4/1/2021 from Worksheet 1, line 2b.
In the 20. Health plan allocable to family leave wages field, enter the amount of qualified health plan expenses allocable to qualified family leave wages for leave taken before 4/1/2021 from Worksheet 1, line 2f.
In the 23. Qualified sick leave wages after 3/31/2021 and before 10/1/2021 field, enter the qualified sick leave wages for leave taken after 3/31/2021 and before 10/1/2021 from Worksheet 2, line 2a.
In the 24. Health plan allocable to sick leave wages on line 23 field, enter the qualified health plan expenses allocable to qualified sick leave wages reported on line 23. This is the amount from Worksheet 2, line 2b.
In the 25. Collective bargaining allocable to sick leave wages on line 23 field, enter the collectively bargained defined benefit pension plan contributions and collectively bargained apprenticeship program contributions allocable to sick leave wages reported on line 23. This is the amount from Worksheet 2, line 2c.
In the 26. Qualified family leave wages after 3/31/2021 and before 10/1/2021 field, enter the qualified family leave wages paid to your employees for leave taken after 3/31/2021 and before 10/1/2021 from Worksheet 2, line 2g.
In the 27. Health plan allocable to family leave wages on line 26 field, enter the qualified health plan expenses allocable to qualified family leave wages reported on line 26. This is the amount from Worksheet 2, line 2h.
In the 28. Collective bargaining allocable to family leave wages on line 26 field, enter the collectively bargained defined benefit pension plan contributions and collectively bargained apprenticeship program contributions allocable to qualified family leave wages reported on line 26. This is the amount from Worksheet 2, line 2i.
Click Next >>. ActivityHD prompts you to confirm that you want to generate the 941 return.
Click Yes. ActivityHD informs you when the process is complete and reports its results.
Click Next >>. ActivityHD shows the return that was created.

At this point, you can double-click the return in the right pane to drill down to the Form 941 Return window or you can print the return.
When you finish viewing or working with the return, click Finish.

SPECIAL: Maintain a 941 return for quarters affected by COVID-19 (Quarters 2, 3, 4 of 2021)

Until a 941 return is flagged as "Submitted", you can still make limited changes to the return record.

In the Navigation pane, highlight the Payroll/Human Resources > Government > Form 941 Returns folder.
In the HD view, locate and double-click the return you want to make changes to. The return record opens in the Form 941 Return window.

Perform only the steps below which are necessary to update the return record.

In the Deposit Schedule field, select the frequency of your organization's tax deposits. Your options are:
- Monthly
- Semiweekly. You must make semiweekly deposits if you reported more than $50,000 in taxes during the lookback period (July 1 of the second preceding calendar year through June 30 of the preceding calendar year), or if you are a monthly schedule depositor that accumulated $100,000 in tax liability on any day during the deposit period.
If the Final Return checkbox is marked and this, in fact, is not your final 941 return, clear the checkbox.

If the Final Return checkbox in not marked and this is your final 941 return, mark the checkbox and enter the Date Wages Were Last Paid to your employees.
In the EIN field, enter your Employer Identification Number (EIN). The default value is the employer ID from your federal tax entity.
In the Employer field, select the export employer record to associate with the return. The default employer is the employer designated when the 941 return was generated.
If your trade name is the same as the value in the Name field, leave the Trade Name field blank. If you are a sole proprietor, enter your trade name in this field.
In the Prior Overpayment field, enter the amount of any overpayment for a prior quarter.
In the Other Overpayment field, enter the amount of any overpayment you applied from filing Form 941-X or 944-X in the current quarter.
If there is an amount in the Overpayment field, the Overpayment Option field is enabled. Select how to handle the overpayment amount. Your options are:
- Apply to Next Return
- Send a Refund
If the Allow a third party to discuss this return with the IRS checkbox is marked and you need to revoke authorization, clear the checkbox. If the checkbox is clear and you need to authorize a third party, mark the checkbox and then enter information in the Third Party Designee section.
If the Allow a third party to discuss this return with the IRS checkbox is marked, the fields in the Third Party Designee section are enabled.
1. Enter the Name of the third party designee.
2. Enter the third party designee's Phone number.
3. Enter the third party designee's personal identification number (PIN). The PIN is a five-digit number chosen by the designee.
Select the COVID-19 tab.
In the Number of individuals with COBRA premium assistance field, enter the number of individuals provided COBRA premium assistance during the quarter.
In the Refundable sick and family leave credit before 4/1/2021 field, enter the refundable portion of the credit for qualified sick and family leave wages for leave taken before 4/1/2021.
In the Refundable employee retention credit field, enter the refundable portion of the employee retention credit.
In the Refundable sick and family leave credit after 3/31/2021 field, enter the refundable portion of the credit for qualified sick and family leave wages for leave taken after 3/31/2021.
In the COBRA premium assistance credit field, enter the refundable portion of the COBRA premium assistance credit.
In the Advances from this quarter's Form(s) 7200 field, enter the total advances received from filing Form(s) 7200 for the quarter. Do not include advances requested but not received by the time you file Form 941.
If this return is for quarter 3 or 4 of 2021, the Business eligible for ERC solely because it's a recovery startup checkbox is visible. Mark the checkbox if you qualify for the employee retention credit solely because your business is a recovery startup business.
In the Health plan allocable to sick leave wages before 4/1/2021 field, enter the amount of qualified health plan expenses allocable to qualified sick leave wages for leave taken before 4/1/2021.
In the Health plan allocable to family leave wages before 4/1/2021 field, enter the amount of qualified health plan expenses allocable to qualified family leave wages for leave taken before 4/1/2021.
In the Employee retention credit (ERC) wages field, enter the amount of qualified wages for the employee retention credit.
In the Health plan allocable to ERC wages field, enter the qualified health plan expenses allocable to ERC wages.
In the Qualified sick leave wages after 3/31/2021 field, enter the qualified sick leave wages for leave taken after 3/31/2021.
In the Health plan allocable to sick leave wages after 3/31/2021 field, enter the qualified health plan expenses allocable to qualified sick leave wages for leave taken after 3/31/2021.
In the Collective bargaining allocable to sick leave wages after 3/31/2021 field, enter the collectively bargained defined benefit pension plan contributions and collectively bargained apprenticeship program contributions allocable to sick leave wages for leave taken after 3/31/2021.
In the Qualified family leave wages after 3/31/2021 field, enter the qualified family leave wages paid to your employees for leave taken after 3/31/2021.
In the Health plan allocable to family leave wages after 3/31/2021 field, enter the qualified health plan expenses allocable to qualified family leave wages for leave taken after 3/31/2021.
In the Collective bargaining allocable to family leave wages after 3/31/2021 field, enter the collectively bargained defined benefit pension plan contributions and collectively bargained apprenticeship program contributions allocable to qualified family leave wages for leave taken after 3/31/2021.
When you finish, save your changes.

Maintain a 941 return

Until a 941 return is flagged as "Submitted", you can still make limited changes to the return record.

In the Navigation pane, highlight the Payroll/Human Resources > Government > Form 941 Returns folder.
In the HD view, locate and double-click the return to make changes to. The return record opens in the Form 941 Return window.

Perform only the steps below which are necessary to update the return record.

In the Deposit Schedule field, select the frequency of your organization's tax deposits. Your options are:
- Monthly
- Semiweekly. You must make semiweekly deposits if you reported more than $50,000 in taxes during the lookback period (July 1 of the second preceding calendar year through June 30 of the preceding calendar year), or if you are a monthly schedule depositor that accumulated $100,000 in tax liability on any day during the deposit period.
If the Final Return checkbox is marked and this, in fact, is not your final 941 return, clear the checkbox.

If the Final Return checkbox in not marked and this is your final 941 return, mark the checkbox and enter the Date Wages Were Last Paid to your employees.
In the EIN field, enter your Employer Identification Number (EIN). The default value is the employer ID from your federal tax entity.
In the Employer field, select the export employer record to associate with the return. The default employer is the employer designated when the 941 return was generated.
If your trade name is the same as the value in the Name field, leave the Trade Name field blank. If you are a sole proprietor, enter your trade name in this field.
In the Prior Overpayment field, enter the amount of any overpayment for a prior quarter.
In the Other Overpayment field, enter the amount of any overpayment you applied from filing Form 941-X or 944-X in the current quarter.
If there is an amount in the Overpayment field, the Overpayment Option field is enabled. Select how to handle the overpayment amount. Your options are:
- Apply to Next Return
- Send a Refund
If the Allow a third party to discuss this return with the IRS checkbox is marked and you need to revoke authorization, clear the checkbox. If the checkbox is clear and you need to authorize a third party, mark the checkbox and then enter information in the Third Party Designee section.
If the Allow a third party to discuss this return with the IRS checkbox is marked, the fields in the Third Party Designee section are enabled.
1. Enter the Name of the third party designee.
2. Enter the third party designee's Phone number.
3. Enter the third party designee's personal identification number (PIN). The PIN is a five-digit number chosen by the designee.
When you finish, save your changes.

Print a 941 return

The print process prints Form 941 for monthly depositors and both Form 941 and Schedule B for semiweekly depositors. A PDF of the output is attached to the 941 return record.

In the Navigation pane, highlight the Payroll/Human Resources > Government > Form 941 Returns folder.
Start the Print Form 941 Returns wizard.
- To print all or a filtered subset of 941 returns:
  1. Right-click the Form 941 Returns folder and select Select and Print from the shortcut menu.
  2. On the Selection tab, define any filters to apply to the 941 returns.
  3. Click Next >>. ActivityHD validates the returns for printing.
- To print specifically selected 941 returns:
  1. In the HD view, select the 941 returns to print.
  2. Click . ActivityHD validates the returns for printing.
- To print a particular 941 return from the Form 941 Return window:
  1. In the HD view, locate and double-click the 941 return to print. The Form 941 Return window opens with the return loaded.
  2. Click . ActivityHD validates the return for printing.
Click Next >>.
On the Output tab in the Design field, select the report design to use to print the 941 returns. The default design is the built-in design for the current reporting year. Report designs are named "20xx Form 941 (built-in)", where xx is the last two digits of the reporting year.

Note

Because the "Form 941 (built-in)" report design uses built-in images, "Data" access to the Images folder is required to use it.
In the toolbar, click the icon for the type of output you want:
- - Provides access to two preview options.
  - Preview - Click the icon or click the drop-down arrow and select Preview from the drop-down menu to view the 941 returns in the Crystal Reports viewer.
  - Preview to PDF - Click the drop-down arrow next to the icon and select Preview to PDF to view the 941 returns in the PDF reader.
- - Opens the Print dialog so that you can select and configure a printer and then print a paper copy of the returns.
- - Opens the Report Email Options dialog so that you can address and compose an email that the returns will be attached to.
- - Opens the Export Report dialog so that you can save the returns to a file. File types include Crystal Reports (.rpt), PDF (.pdf), Microsoft Excel (.xls), Microsoft Word (.doc), rich text (.rtf), and XML (.xml).
When you finish previewing, printing, and/or exporting returns, click Next >>.
The Submit Date field defaults to the current date. If today is not the actual submission date, enter the submission date.
If you do not want to attach the Form 941 to its record, clear the Create Attachments checkbox.
To flag the return(s) as "Submitted", click Finish.

Data extensions

The following data extension is available for the report:

USA 941 returns

Reprint a 941 return

Use the Reprint Form 941 Returns wizard when you need to print 941 returns after they have been flagged as "Submitted".

The reprint process prints Form 941 for monthly depositors and both Form 941 and Schedule B for semiweekly depositors.

In the Navigation pane, highlight the Payroll/Human Resources > Government > Form 941 Returns folder.
Start the Reprint Form 941 Returns wizard.
- To print all or a filtered subset of 941 returns:
  1. Right-click the Form 941 Returns folder and select Select and Reprint from the shortcut menu.
  2. On the Selection tab, define any filters to apply to the 941 returns.
  3. Click Next >>. ActivityHD validates the returns for reprinting.
- To reprint specifically selected 941 returns:
  1. In the HD view, select the 941 returns to reprint.
  2. In the toolbar, click the drop-down arrow next to the Print icon and select Reprint from the drop-down menu. ActivityHD validates the returns for reprinting.
- To reprint a particular 941 return from the Form 941 Return window:
  1. In the HD view, locate and double-click the 941 return to reprint. The Form 941 Return window opens with the return loaded.
  2. In the toolbar, click the drop-down arrow next to the Print icon and select Reprint from the drop-down menu. ActivityHD validates the return for reprinting.
Click Next >>.
On the Output tab in the Design field, select the report design to use to reprint the 941 returns. The default design is the built-in design for the current reporting year. Report designs are named "20xx Form 941 (built-in)", where xx is the last two digits of the reporting year.

Note

Because the "Form 941 (built-in)" report design uses built-in images, "Data" access to the Images folder is required to use it.
In the toolbar, click the icon for the type of output you want:
- - Provides access to two preview options.
  - Preview - Click the icon or click the drop-down arrow and select Preview from the drop-down menu to view the returns in the Crystal Reports viewer.
  - Preview to PDF - Click the drop-down arrow next to the icon and select Preview to PDF to view the returns in the PDF reader.
- - Opens the Print dialog so that you can select and configure a printer and then print a paper copy of the returns.
- - Opens the Report Email Options dialog so that you can address and compose an email that the returns will be attached to.
- - Opens the Export Report dialog so that you can save the returns to a file. File types include Crystal Reports (.rpt), PDF (.pdf), Microsoft Excel (.xls), Microsoft Word (.doc), rich text (.rtf), and XML (.xml).
When you finish previewing, printing, and/or exporting returns, click Finish.

Data extensions

The following data extension is available for the report:

USA 941 returns

Manually clear the "Submitted" flag on a 941 return

Form 941 Return Record ID

Reporting Year

Displays the year of the 941 return.

Quarter

Indicates the quarter covered by the 941 return.

Submitted

This checkbox indicates whether the 941 return has been submitted to the federal government. ActivityHD prevents changes to returns with "Submitted" status.

In general, ActivityHD maintains the Submitted checkbox. When the printing process is completed, ActivityHD automatically flags the returns as "Submitted" and the submission date and username of the submitter are applied to the return record.

If you need to manually set the "Submitted" flag, mark the checkbox. If you need to reset the status, clear the checkbox; the date and username are cleared when you save the record.

Deposit Schedule

Select the frequency of your tax deposits. Your options are:

Monthly
Semiweekly. You must make semiweekly deposits if you reported more than $50,000 in taxes during the lookback period (July 1 of the second preceding calendar year through June 30 of the preceding calendar year), or if you are a monthly schedule depositor that accumulated $100,000 in tax liability on any day during the deposit period.

Liability for this return or previous return is less than 2500

Indicates if liability for the current quarter's return or the previous quarter's return is less than $2500. If either is true and you did not incur a $100,000 next-day deposit obligation, you are eligible to submit your payment along with Form 941 rather than by federal tax deposit. This checkbox is system-maintained.

Final Return

This checkbox is marked if the Business has closed or is no longer paying wages checkbox was marked in the Generate Form 941 wizard when the 941 return was generated.

Mark this checkbox if this return is the last return that will be filed for your organization.

If your business has closed or you stop paying wages, you must file a final return. If two businesses merge, the continuing business must file a 941 return for the quarter in which the merger took place and the other business should file a final return.

If you mark the checkbox, the Date Wages Were Last Paid field is enabled.

Date Wages Were Last Paid

This field is enabled if the Final Return checkbox is marked. Enter the last date your organization paid wages to its employees.

Form 941 tab

Employer Information

This section displays information from the export employer record. If the return has not been submitted, the EIN, Employer, and Trade Name fields are editable.

EIN

The employer's Employer Identification Number (EIN). This value defaults from your federal tax entity. If the return has not been submitted, you can change the value in this field.

This field is disabled once the Submitted checkbox is marked.

Employer

The employer for the 941 return. If the return has not been submitted, you can select a different export employer.

This field is disabled once the Submitted checkbox is marked.

Press F3 to look up the value.

If a value is already selected, you can press F4 to open the record in its native editor.

Name

The legal name of the business. This is the name from the Address section of the export employer record. For sole proprietors, this should be your given name.

Trade Name

If your trade name is the same as the legal name of the business, leave this field blank. If you are a sole proprietor, be sure your legal name appears in the Name field and enter your trade name in this field.

This field is disabled once the Submitted checkbox is marked.

Location Address

Displays the location from the export employer address. This is typically a suite number or room number. This value prints on the right side of the Address box on the printed 941 return.

Delivery Address

Displays the delivery address from the export employer address. This is typically a street address or post office box. This value prints on the left side of the Address box on the printed 941 return.

City/State

Displays the city, state, and Zip Code of the employer address.

Province

For Canadian employers, displays the province of the employer address. For United States employers, this field is blank.

Postal Code

For Canadian employers, displays the postal code of the employer address.

Country

For non-USA employers, displays the country code of the employer address. For employers in the USA, this field should be blank.

Seasonal Employer

Indicates that the Business is seasonal employer that does not have to file every quarter checkbox in the Generate Form 941 wizard was marked when the 941 return was generated.

Wages, Tips, and Other Compensation

Summarizes wage information for the quarter.

Employee Count

Displays the number of employees who received wages, tips, or other compensation during the pay period which included the 12th day of the third month of the quarter.

Income Tax Wages

Displays the total taxable wages reported for the quarter on the 941 return. In ActivityHD terms, this is the total Source amount for the "Income Tax" group.

Income Tax Withheld

Displays the total tax amount withheld for the quarter. In ActivityHD terms, this is the total Result amount of the "Income Tax" group minus the total Result amount of the "3rdPartySickPayTax" group.

Social Security and Medicare

Summarizes Social Security and Medicare taxes for the quarter.

Social Security Wages: Wages & Tips

Displays the total amount of wages subject to Social Security tax for the quarter. In ActivityHD terms, this is the total source of check lines (for employee) associated with the "Social Security" group minus the total Result amount of the "Reported Tips" group.

Social Security Wages: Tax Liability

Displays total tax liability on Social Security wages for the quarter. This is the Social Security wages amount times the Social Security tax rate (.124 as of 1/1/2023).

Social Security Tips: Wages & Tips

Displays the total amount of tips subject to Social Security tax for the quarter. In ActivityHD terms, this is the total Result amount of the "Reported Tips" group.

Social Security Tips: Tax Liability

Displays the total tax liability on Social Security tips for the quarter. This is the Social Security tips amount times the Social Security tax rate (.124 as of 1/1/2023).

Medicare Wages & Tips: Wages & Tips

Displays the total amount of wages and tips subject to Medicare tax for the quarter. In ActivityHD terms, this is the total Source amount of check lines (for employee) associated with the "Medicare" group.

Medicare Wages & Tips: Tax Liability

Displays the total tax liability on Medicare wages and tips for the quarter. This is the Medicare wages amount times the Medicare tax rate (.029 as of 1/1/)2023.

Additional Medicare: Wages & Tips

Displays the total amount of wages subject to the additional Medicare tax for the quarter. In ActivityHD terms, this is the total Source amount of the "MedicareAdd" group.

Additional Medicare: Tax Liability

Displays the total tax liability on additional Medicare wages for the quarter. This is the additional Medicare amount times the additional Medicare tax rate (.009 as of 1/1/2023).

Section 3121(q) Notice and Demand

Unreported Tips Tax

If the IRS issued you a Section 3121(q) Notice and Demand to advise you of the amount of unreported or underreported tips, this field displays the tax amount reported on that form. In ActivityHD terms, this is the total Result amount of the "Unreported Tips" group.

Adjustments

The fields in this section indicate adjustments to the taxable amount.

Fractions of Cents

Displays the adjustment amount for the rounding of the employee share of Social Security and Medicare taxes withheld. In ActivityHD terms, this is the sum of the total Result amounts of the "Social Security", "Medicare", and "MedicareAdd" groups minus the sum of Social Security tax liability, Social Security tips liability, Medicare wages tax liability, and additional Medicare tax liability.

Third-Party Sick Pay

Displays the adjustment amount for the employee share of Social Security and Medicare taxes withheld and deposited by a third-party sick pay payer for sick pay paid by the third-party payer. In ActivityHD terms, this is the total Result amount of the "3rdPartySickPaySS" group plus the total Result amount of the "3rdPartySickPayMed" group.

Tips & Life Insurance

Displays the adjustment amount for any uncollected employee share of Social Security and Medicare taxes on tips and for the uncollected employee share of Social Security and Medicare taxes on group-term life insurance premiums paid for former employees. In ActivityHD terms, this is the sum of the total Result amounts of the "UncollectedSSOnTips", "UncollectedMedOnTips", "UncollectedSSOnIns", and "UncollectedMedOnIns" groups.

Tax Credits

Payroll Tax Credit (Attach Form 8974)

Displays the amount entered on the Options tab of the Generate Form 941 process for the small business payroll tax credit for increasing research activities from line 12 of Form 8974, if any.

Tax Payments

Tax Deposits

Displays the total of tax deposits made for the quarter; i.e., the sum of paid tax deposits with a liability date in the specified year and quarter.

Prior Overpayment

Enter the amount of any overpayment for a prior quarter. This field is disabled once the Submitted checkbox is marked.

Other Overpayment

Enter the amount of any overpayment you applied from filing Form 941-X or Form 944-X in the current quarter. This field is disabled once the Submitted checkbox is marked.

Net Result

Balance Due

If total taxes owed is greater than total tax payments made, this field displays the balance due. Otherwise, this field is blank.

Overpayment

If total taxes owed is less than total tax payments made, this field displays the amount of overpayment. Otherwise, this field is blank.

Overpayment Option

This field is enabled if the return has not been submitted and there is an amount in the Overpayment field. Select how to handle the overpayment amount. Your options are:

Apply to Next Return
Send a Refund

Third Party Designee

Allow a third party to discuss this return with the IRS

The checkbox indicates whether a third party was authorized to discuss the return with the IRS when the 941 return was generated. If the checkbox is marked and you need to revoke the authorization, clear the checkbox. If the checkbox is clear and you need to authorize a third party, mark the checkbox and then enter information in the fields below.

This checkbox is disabled once the Submitted checkbox is marked.

The remaining fields are enabled if the Allow a third party to discuss the return with the IRS checkbox is marked and the Submitted checkbox is not marked.

Name

Enter the name of the third party designee.

Phone

Enter the third party designee's phone number.

Enter the third party designee's personal identification number (PIN). The PIN is a five-digit number chosen by the designee.

Custom tab

This tab is visible if custom fields exist for the entity. At a minimum, if there are custom fields, a Fields subtab will be present. One or more additional categories of subtabs may also be visible.

Fields subtab

This tab prompts for values for any custom fields set up for entity records of this entity type. Respond to the prompts as appropriate.

References subtab

This tab is visible if other records reference the current record.

Reference

From the drop-down list, select the custom field to view references for. Reference custom fields have the following format: PackageName.EntityName.CustomFieldName.

Example

Suppose a custom field exists on PRCodes that references an ARCode. On the ARCode record, on the Custom > References subtab, you can view all the PRCodes which reference that ARCode.

Exchange Folder subtab

This tab is visible only if you set up a custom field with a data type of "Exchange Folder". The label on this tab is the name assigned to the custom field.

This tab shows the contents of the specified Exchange folder.

File subtab

This tab is visible only if you set up a custom field with a data type of "File". The label on the tab is the name assigned to the custom field.

This tab renders the contents of the specified file according to its file type.

Internet Address subtab

This tab is visible only if you set up a custom field with a data type of "Internet Address". The label on this tab is the name assigned to the custom field.

This tab shows the contents of the specified web page.

Network Folder subtab

This tab is visible only if you set up a custom field with a data type of "Network Folder". The label on this tab is the name assigned to the custom field.

This tab shows the contents of the specified network folder.

Employees tab

The Employees pane shows the Employees HD view filtered to show all employees represented on the 941 return.

Double-click a row in the pane to drill down to its record in the Employee window.

Checks tab

The Checks pane shows the Checks HD view filtered to show all pay checks represented on the 941 return.

Double-click a row in the pane to drill down to its record in the Check window.

Check Lines tab

The Check Lines pane shows the Check Lines HD view filtered to show all check lines represented on the 941 return.

Double-click a row in the pane to drill down to its record in the Check Line window.

Tax Deposits tab

The Tax Deposits pane shows the Tax Deposits HD view filtered to show all tax deposits made for the quarter covered by the 941 return.

Double-click a row in the pane to drill down to its record in the Tax Deposit window.

Attachments tab

The Attachments tab is visible if any record for a given entity has an attachment. If the Attachments tab is not visible, this implies that no record of the entity type has an attachment on it; however, once an attachment is added to any record of the entity type, the Attachments tab will become available.

Attachments

The list box shows the files which are attached to the current record. Highlight a file name to preview the file in the adjacent pane. Double-click a file name to open the file in its native editor.

Preview pane

If a file name is highlighted in the Attachments list box, this pane shows a preview of the file contents. Some file types cannot be previewed but can be double-clicked to open in their native editor.

Other tab

Memo tab

To include additional information about this record not collected elsewhere, enter it in this text box. This area supports common keyboard shortcuts such as Ctrl+C to copy and Ctrl+V to paste.

Timestamps tab

This tab shows the user who created this record and the date and time of creation as well as the user, date, and time of the latest modification to the record.

Common accesses available on Form 941 returns

Access	A user with this access can...
Change	Use the mass change action on USA 941 returns.
Custom Fields	Create and edit custom fields for USA 941 returns.
Data	Have read-only access to USA 941 returns from anywhere in the software (e.g., field validations, filters, date expressions).
Delete	Delete USA 941 returns.
Edit	Edit USA 941 return records.
Export	Export USA 941 return records from ActivityHD.
Read	Have read-only access to USA 941 return records.
Report	Run reports with USA 941 return information.
Report Designs	Create and edit report designs with USA 941 return information. This access enables the Report Designs button on the Output tab of report dialogs.
Shared Answers	Create and edit action profiles and report profiles related to USA 941 returns.
Shared Filters	Create and edit shared filters on USA 941 returns.
Visible	View the Form 941 Returns folder in the Navigation pane.

Special accesses available on Form 941 returns

Access	A user with this access can...
Generate	Generate 941 returns.
Print	Print 941 returns.
Reprint	Reprint 941 returns.

Example

Excerpt from sample check:

PRCode	Source	Result	AP Control	Groups	Debit Account	Credit Account
Pay.3rdSick	685.71	685.71		Compensation	9999-00-00-A
Tax.3rdMedEE	685.71	9.94		3rdPartySickPayMed, Medicare		9999-00-00-A
Tax.3rdSocSecEE	685.71	42.51		3rdPartySickPaySS, SocialSecurity		9999-00-00-A
Tax.3rdUSA	685.71	0.00		3rdPartySickPayTax, IncomeTax		9999-00-00-A
Tax.MedER	685.71	9.94	941	Medicare	5401-00-00-A	2401-00-00-A
Tax.SocSecER	685.71	42.51	941	SocialSecurity	5402-00-00-A	2402-00-00-A
Ded.3rdSick	633.26	633.26				9999-00-00-A

Source and Result expressions for Ded.3rdSick

Source:

SumCheck.Result('Type=Pay AND Pay=3rdSick')

- SumCheck('3rdPartySickPayTax Amount')

- SumCheck('3rdPartySickPaySS Amount')

- SumCheck('3rdPartySickPayMed Amount')

Result:

Source

Noteworthy:

Pay.3rdSick, Tax.3rdMedEE, and Tax.3rdSocSecEE, and perhaps Tax.3rdUSA, are input after-the-fact from the third-party claim.
3rdMedEE and 3rdSocSecEE have normal source expressions for wages, but a null result expression for entering the claim amount.
Tax.3rdUSA has a normal source for taxable wages, but the result is blank or zero. This line is needed for taxable wages, even if the third-party payer did not deduct it (this is also true for state taxes).
Employee-paid taxes in both the normal groups and the third-party groups.
- W-2 forms. Since they are in normal taxable groups, third-party totals are included in wage and withholding amounts on W-2 forms. Moreover, the third-party checkbox is marked on the W-2 if either the Third Party Sick Pay checkbox is marked on the employee record or the third-party Social Security or Medicare withholding amount is greater than zero.
- USA Tax Liability Report. Mark the Subtract Third-party Sick Pay checkbox to report your company's tax liability only. Clear the checkbox to include taxes paid by third parties.
- Form 941. Third-party sick amounts are reported on Form 941.
There is no AP control for employee-withheld social security, Medicare, and income tax since these are paid by the third-party payer.
Normal MedER and SocSecER are used for amounts the employer owes. These are assigned to an AP control.
Ded.3rdSick reduces net pay to zero.

Sample Check GL Detail Report

Note the suspense account is used for 3rdMedEE, 3rdSocSecEE, 3rdUSA, and Ded.3rdSick.

Accrual
9999-00-00-A	Suspense	08/19/2023	685.71
5401-00-00-A	Medicare Tax	08/19/2023	9.94
5402-00-00-A	Social Security Tax	08/19/2023	42.51
9999-00-00-A	Suspense	08/19/2023		738.16
			738.16	738.16

Liability
9999-00-00-A	Suspense	08/19/2023	738.16
9999-00-00-A	Suspense	08/19/2023		685.71
2401-00-00-A	Medicare Payable	08/19/2023		9.94
2402-00-00-A	Social Security Payable	08/19/2023		42.51
			738.16	738.16

Cash
9999-00-00-A	Suspense	08/19/2023	0.00
9999-00-00-A	Suspense	08/19/2023		0.00
			0.00	0.00

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