IRS Releases Draft Form 941
Social Security Rate Is Changed on Draft Form
Since the employee social security tax rate for 2011 is 4.2%, the rate used to calculate tax on both taxable social security wages and taxable social security tips has been changed from 12.4% to 10.4%.
New Line 5e Has Been Added
The draft form includes a new line 5e to report §3121(q) notice and demand—tax due on unreported tips. Under §3121(q), when notice and demand is made for such taxes, the remuneration is deemed to be paid on the date of the notice.
Lines 6a-6d Made Inactive
Lines 6a, 6b, 6c, and 6d have been made inactive on the draft Form 941. These lines were used to report on qualified employees and exempt wages under the HIRE Act.
Contact Vision Payroll for Further Information
Contact Vision Payroll for further information on the changes in the draft Form 941.
Vision Payroll