IRS Announces Revisions to Form 941


The IRS announced that in mid-March it will start sending employers new Forms 941, Employer’s Quarterly Federal Tax Return. Employers will use the revised form to claim the new COBRA premium assistance payments credit, which was introduced by the recent stimulus act, the American Recovery and Reinvestment Act of 2009, PL 111-5.

 

Under the act, eligible former employees who were enrolled in their employer’s health plan when they lost their jobs are required to pay only 35% of the cost of COBRA coverage. Employers must treat the 35% payment by eligible former employees as full payment, but the employers are entitled to a credit for the other 65% of the COBRA cost on their payroll tax return.

 

Employers will use the revised Form 941 starting with the first quarter of 2009.

 

SPONSORED REPORT

6 key areas of change for accountants and auditors

New accounting standards on revenue recognition, leases, and credit losses present implementation challenges. This independently-written report identifies the hurdles that accounting professionals face and provides tips for overcoming the challenges.

PODCAST

How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.