Instructions For Form 941-Ss - Employer'S Quarterly Federal Tax Returnamerican Samoa, Guam, The Commonwealth Of The Northern Mariana Islands, And The U.s. Virgin Islands - 2017


Instructions for Form 941-SS
Department of the Treasury
Internal Revenue Service
(Rev. January 2017)
Employer's QUARTERLY Federal Tax Return—American Samoa, Guam, the
Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands
Section references are to the Internal Revenue Code unless
generally treated as the employer of any individual
otherwise noted.
performing services for a customer of the CPEO and covered
by a contract described in section 7705(e)(2) between the
Future Developments
CPEO and the customer (CPEO contract), but only for wages
and other compensation paid to the individual by the CPEO.
For the latest information about developments related to
For more information, visit the IRS website at
Form 941-SS and its instructions, such as legislation enacted
after they were published, go to
CPEOs generally must file Form 941-SS and Schedule R
(Form 941), Allocation Schedule for Aggregate Form 941
What's New
Filers, electronically. For more information about a CPEO’s
requirement to file electronically, see Rev. Proc. 2017-14,
Social security and Medicare tax for 2017. The social
2017-3 I.R.B. 426, available at
security tax rate is 6.2% each for the employee and
employer, unchanged from 2016. The social security wage
base limit is $127,200.
The Medicare tax rate is 1.45% each for the employee
Work opportunity tax credit for qualified tax-exempt or-
and employer, unchanged from 2016. There is no wage base
ganizations hiring qualified veterans. The work
limit for Medicare tax.
opportunity tax credit is available for eligible unemployed
Social security and Medicare taxes apply to the wages of
veterans who begin work on or after November 22, 2011, and
household workers you pay $2,000 or more in cash wages in
before January 1, 2020. Qualified tax-exempt organizations
2017. Social security and Medicare taxes apply to election
that hire eligible unemployed veterans can claim the work
workers who are paid $1,800 or more in cash or an
opportunity tax credit against their payroll tax liability using
equivalent form of compensation in 2017.
Form 5884-C. For more information, visit and enter
Qualified small business payroll tax credit for increas-
“work opportunity tax credit” in the search box.
ing research activities. For tax years beginning after
COBRA premium assistance credit. Effective for tax
December 31, 2015, a qualified small business may elect to
periods beginning after December 31, 2013, the credit for
claim up to $250,000 of its credit for increasing research
COBRA premium assistance payments can't be claimed on
activities as a payroll tax credit against the employer’s share
Form 941-SS. Instead, after filing your Form 941-SS, file
of social security tax. The portion of the credit used against
Form 941-X, Adjusted Employer's QUARTERLY Federal Tax
the employer’s share of social security tax is allowed in the
Return or Claim for Refund, to claim the COBRA premium
first calendar quarter beginning after the date that the
assistance credit. Filing a Form 941-X before filing a Form
qualified small business filed its income tax return. The
941-SS for the quarter may result in errors or delays in
election and determination of the credit amount that will be
processing your Form 941-X. For more information, visit
used against the employer’s share of social security tax is and enter “COBRA” in the search box.
made on Form 6765, Credit for Increasing Research
Activities. The amount from Form 6765, line 44, must then be
If you’re entitled to claim the COBRA premium
reported on Form 8974, Qualified Small Business Payroll Tax
assistance credit, but aren't otherwise required to file
Credit for Increasing Research Activities. Form 8974 is used
Form 941-SS, file a Form 941-SS with -0- entered on
to determine the amount of the credit that can be used in the
line 14 before filing a Form 941-X to claim the credit.
current quarter. The amount from Form 8974, line 12, is
reported on Form 941-SS, line 11. If you are claiming the
Aggregate Form 941-SS filers. Agents and CPEOs must
complete Schedule R (Form 941) when filing an aggregate
research payroll tax credit on your Form 941-SS, you must
Form 941-SS. Aggregate Forms 941-SS are filed by agents
attach Form 8974 to that Form 941-SS.
approved by the IRS under section 3504. To request
New certification program for professional employer or-
approval to act as an agent for an employer, the agent files
ganizations. The Tax Increase Prevention Act of 2014
Form 2678 with the IRS. Aggregate Forms 941-SS are also
required the IRS to establish a voluntary certification program
filed by CPEOs approved by the IRS under section 7705.
for professional employer organizations (PEOs). PEOs
CPEOs file Form 8973, Certified Professional Employer
handle various payroll administration and tax reporting
Organization/Customer Reporting Agreement, to notify the
responsibilities for their business clients and are typically
IRS that they started or ended a service contract with a
paid a fee based on payroll costs. To become and remain
customer. CPEOs generally must file Form 941-SS and
certified under the certification program, certified
Schedule R (Form 941) electronically. For more information
professional employer organizations (CPEOs) must meet tax
about a CPEO’s requirement to file electronically, see Rev.
status, background, experience, business location, financial
Proc. 2017-14, 2017-3 I.R.B. 426, available at
reporting, bonding and other requirements described in
sections 3511 and 7705 and related published guidance. The
Correcting a previously filed Form 941-SS. If you
IRS began accepting applications for PEO certification in July
2016. Certification as a CPEO affects the employment tax
discover an error on a previously filed Form 941-SS, make
the correction using Form 941-X. Form 941-X is filed
liabilities of both the CPEO and its customers. A CPEO is
Feb 27, 2017
Cat. No. 35530F


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