Form 941 Schedule R

What’s New in Schedule R for 2024?

The March 2024 revision includes:

• A checkbox to indicate if it is attached to Form 941 or 941-X.
• Columns f, l, n, o, p, u, w, x, and y are used only with Form 941-X.
• The calendar year field is no longer pre-populated. This version should be used primarily for quarters after December 31, 2023.

Who Needs to File Schedule R?

• Agents approved by the IRS under section 3504 and CPEOs must complete Schedule R with each aggregate Form 941 filing.
• Non-certified PEOs and other third-party payers must file Schedule R if clients claim the qualified small business payroll tax credit for increasing research activities or other credits on Form 941-X.

Instructions for Completing Schedule R

Enter Your Business Information

• Enter your EIN and business name exactly as shown on the attached Form 941 or 941-X.
• Check the "Type of filer" box to indicate if you’re a section 3504 agent, CPEO, or other third party.

Calendar Year

• Enter the calendar year for Form 941 or 941-X to which Schedule R is attached.
• Check the box for the appropriate quarter to match the quarter checked on the attached Form 941 or 941-X.

Form Checkbox

• Indicate whether Schedule R is attached to Form 941 or 941-X.

Client and Employee Information

For each client report:

• Column a: Client’s EIN.
• Column b (CPEO Use Only): Enter a code for the type of wages, tips, and compensation paid (codes A, B, C, or D).
• Code summary :
• A: Wages, tips, and other compensation paid under section 3511(a).
• B: Wages, tips, and other compensation paid under section 3511(c).
• C: Wages, tips, and other compensation not reported under code A or code B paid as a payor under a service agreement described in Regulations section 31.3504-2(b) (2).
• D: Wages, tips, and other compensation paid as an agent under Regulations section 31.3504-1.
• Column c : Number of employees who received wages, tips, or other compensation (Form 941, line 1).
• Column d : Wages, tips, and other compensation allocated (Form 941, line 2; Form 941-X, line 6, column 1).
• Column e : Total federal income tax withheld on Form 941, line 3 or (Form 941-X, line 7, column 1).
• Column f : Qualified sick leave and family leave wages for leave taken after March 31, 2020, and before April 1, 2021 (Form 941-X, lines 9 and 10, column 1, total).
• Column g : Social security tax on wages and tips on Form 941, lines 5a and 5b, column 2 or (Form 941-X, lines 8 and 11, column 1), multiplied by the applicable tax rate.
• Column h : Medicare tax on Form 941, line 5c, column 2 or (Form 941-X, line 12, column 1), multiplied by the applicable tax rate.
• Column i : Total social security and Medicare taxes, including Additional Medicare Tax withholding (Form 941, line 5e).

• Column j: Tax due on unreported tips from Form 941, line 5f or (Form 941-X, line 14, column 1).
• Column k: Qualified small business payroll tax credit from Form 941, line 11 or (Form 941-X, line 16, column 1). Attach Form 8974 for each client claiming this credit.
• Column l: Nonrefundable and refundable credit for qualified sick and family leave wages paid between March 31, 2020, and April 1, 2021, from Form 941-X, lines 17 and 25, column 1 total.
• Column n: Nonrefundable and refundable credit for qualified sick and family leave wages paid between March 31, 2021, and October 1, 2021, from Form 941-X, lines 18b and 26b, column 1, total.
• Column o: Nonrefundable and refundable COBRA premium assistance credit from Form 941-X, lines 18c and 26c, column 1, total.
• Column p: Number of individuals provided COBRA premium assistance from Form 941-X, line 18d, column 1.
• Column q: Total taxes after adjustments and nonrefundable credits from Form 941, line 12.

• Column r: Total deposits, including overpayments applied from prior quarters and current quarter overpayments from Form 941, line 13. Include any payments made with the return.
• Column u: Total qualified health plan expenses for sick and family leave wages paid between March 31, 2020, and April 1, 2021, from Form 941-X, lines 28 and 29, column 1, total.
• Column w: Total qualified sick leave wages and amounts under certain collectively bargained agreements for leave taken between March 31, 2021, and October 1, 2021, from Form 941-X, lines 35 and 37, column 1, total.
• Column x: Total qualified health plan expenses for sick and family leave wages from Form 941-X, lines 36 and 39, column 1, total.
• Column y: Total qualified family leave wages and amounts under certain collectively bargained agreements for leave taken between March 31, 2021, and October 1, 2021, from Form 941-X, lines 38 and 40, column 1.
• Line 6: Add lines 1 through 5 for each column (c through y) to calculate the subtotals.
• Line 7: Enter the combined subtotals from line 9 of all Continuation Sheets for Schedule R for each column (c through y).
• Line 8: Enter Form 941 amounts for your employees for the same column (c through y). This line consolidates any amounts for clients not reported individually on Schedule R.
• Line 9: Add the totals of lines 6, 7, and 8 for each column (c through y). Ensure that the totals for each column match the aggregate amounts reported on Form 941.

Continuation Sheet for Schedule R (Form 941)

Columns a through y.

See the instructions above.

• Line 9: Enter the subtotals for clients from lines 1 through 8 for columns c through l, n through r, u, and w through y.

When to file?

If you’re an aggregate Form 941 filer, you must file Schedule R along with your aggregate Form 941 each quarter.

Agents and non-certified PEOs may file Form 941 and Schedule R electronically or by paper. Certified PEOs (CPEOs) are generally required to file Form 941 and Schedule R electronically.