COVID-19 related relief impacts Form 941 tax filing effective June 30, 2020.The final version of the updated 941 and the instructions are available on the IRS site. Sage is finishing our preparation to support Form 941 in anticipation of updated IRS filing requirements. In addition, a new worksheet is included with Form 941 titled, Credit for Qualified Sick and Family Leave Wages and the Employee Retention Credit. This blog is intended to help prepare customers for these changes.
Form 941 and COVID-19 Resources
Sage recommends you review the these resources to prepare for Form 941 and related changes:
How Sage can help
Answers to Form 941 questions are dependent on several factors including which relief options you took advantage of, how you tracked related pay, how you paid your employees, and how you withheld taxes.
Sage recommends you review the IRS form instructions, Aatrix site, and also review Sage KB articles and training before you complete the Form 941. Remember, that because Sage is not credentialed to give accounting or tax advice, your CPA or Tax Professional is your resource to ensure you complete Form 941 as required.
Because of this, it is not within our Sage scope of support to answer questions related to "What dollar amount goes into this line (of a government required form)?" Our support, services and success teams are trained to help where we can but not overstep this boundary. Depending on the complexity of your business practices, Sage advises customers to review IRS resources and to schedule time with your CPA or Tax Professional.
In Payroll, under Forms, Sage provides options to file forms 941 and form 943. Many companies such as ours have so called agricultural employees which are filed under form 943 and commercial employees which are filed under form 941. Sage 50 does not give the option to select which employees are filed under one or another form. The only option, if form 941 is chosen, is to either file for all employees, which would be incorrect, or do so manually. So the current options do not work and when improvements are made to Sage 50 perhaps the employee selection fields should be enabled. When I called Support, a suggestion was made to create two different companies, which is not acceptable as anyone looking to have a clean set of books can tell you. So please enable the employee selection options, just as it is possible for W-2.
Is anyone else having an issue with balancing their Medicare Wages and their Covid-19 Wages? Seem to me the pre-taxed deductions are being subtracted twice - once for regular wages and their for Covid-19 wages.