It is important to note these are only the proposed changes to Q2 Form 941. At this time the Form 941 for the second quarter of 2022 is a draft. This means that the IRS has created the form but has not been finalized. Typically, the IRS will finalize Form 941 closer to the deadline.
Here are the latest proposed changes that we can expect the IRS to finalize for the second-quarter Form 941:
Form 941 Q2 Worksheets
There will be two worksheets for Form 941 for the second quarter of 2022. The worksheets are used to calculate and claim credits for applicable wages paid in previous quarters. These worksheets include:
Worksheet 1: Credit for Qualified Sick and Family Leave Wages Paid This Quarter of 2022 for Leave Taken After March 31, 2020, and Before April 1, 2021.
Worksheet 2: Credit for Qualified Sick and Family Leave Wages Paid This Quarter of 2022 for Leave Taken After March 31, 2021, and Before October 1, 2021.
Which Lines of Form 941 have been Updated?
The IRS has recently released the revised Form 941 for the second quarter of 2022, complete with proposed changes. Now that the COBRA Premium Assistance Credit credits are no longer available, the following 2022 Q2 Form 941 fields have been updated. The following lines are now “Reserved or Future Use:”
Line 11e: Nonrefundable portion of COBRA premium assistance credit (see instructions for the applicable quarter).
Line 11f: Number of individuals provided COBRA premium assistance
Line 13f: Refundable portion of COBRA premium assistance credit (see instructions for the applicable quarter)
Some lines have been updated to exclude the lines above. This includes the following:
Line 11g: Total nonrefundable credits. Add lines 11a, 11b, and 11d.
Line 13g: Total deposits and refundable credits. Add lines 13a, 13c, and 13e.
Available Tax Credits
There are no COVID-19 tax credits available for the second quarter of 2022. All of the following COVID-19-related tax credits have expired:
Credits for qualified sick and family leave wages
Employee retention credit (ERC)
COBRA premium assistance credits
However, employers may need to report credits claimed for wages in previous quarters when they were available.