The IRS has released a draft of the 2020 Form 941. This draft is the version that’ll be used for second quarter returns and features substantial updates to account for COVID-19 employment tax credits.
Some changes to note include:
- Parts 1 and 3 of Form 941 to account for paid sick leave and expanded family and medical leave, as well as the employee retention credit related to COVID-19.
- Additional reporting for employer advances on qualified leave and/or employee retention credits recorded on Form 7200.
Though this draft can’t be filed, the final version should be released soon. The 2020 Form 941 draft can be viewed on the IRS website.