© 2020 American Payroll Institute, Inc. Inside this issue... IRS Issues Revised Form 941-X, Instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 DOL Proposes Rule for Classifying Workers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 DOL Revises FFCRA Rules to Clarify Paid Leave Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Court Strikes Down DOL Joint Employer Rule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 IRS Issues Federal ‘High-Low’ Per Diem Rates Effective October 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 IRS Answers Questions on Deferral of Employment Tax Deposits, Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 IRS Issues Final Rule for Withholding on Retirement, Annuity Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 APA to Present Year-End Compliance Seminars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 DOL Temporarily Stops FLSA Enforcement for Recreational Employers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 DOL Issues Opinion Letters About FLSA Compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Payroll Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 DHS Extends Temporary Requirements for Form I-9 Compliance Again . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 IRS Announces Quarterly Interest Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 IRS Updates Electronic Return Specifications for 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Specifications for Substitute Forms W-2 and W-3 Updated for 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 DOL Updates FAQs on COVID-19-Related FLSA Incentive Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Daylight Saving Time Ends November 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Free eBook Answers Top Payroll Questions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Court Rules Company Did Not File Form 1099-MISC Fraudulently. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 State and Local News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 October 2, 2020 Volume 28 Issue 10 IRS Issues Revised Form 941 for Third Quarter Reporting O941, n September 30, the IRS released a revised 2020 Form Employer’s Quarterly Federal Tax Return, and its instructions, which includes lines to report the employee social security tax deferral. What’s new Reporting for the third quarter. The latest revision of Form 941 will be used to report employment taxes beginning with the third quarter of 2020. The IRS revised Form 941 to allow employers that defer the withholding and payment of the employee share of social security tax on wages paid on or after September 1, 2020, to include the deferral in the amount reported on Line 13b and to report the deferred amount separately on Line 24. Employers will now report on Line 13b the total deferred amount of the employer and employee share of social security tax. Specifically, on Line 13b, employers will report: (1) the amount of the employer share of social security tax deferred for the quarter pursuant to the CARES Act, and (2) the amount of the employee share of social security tax deferred for the quarter pursuant to Notice 2020-65. On Line 24, employers will report only the deferred amount of the employee share of social security tax included on Line 13b. Adjusting tax liability for the deferred amount of social security tax paid or deposited in the same quarter it was deferred. If an employer defers the employer and/or employee share of social security tax and subsequently pays or deposits that deferred amount in the same quarter it was deferred, report the amount of the payment or deposit on Form 941, Line 16, or on Form 941, Schedule B, on the date of the payment or deposit and not the date of liability. Do not include any portion of the deferred amount of social security taxes already paid or deposited by the end of the quarter on Form 941, Line 13b. For example, a monthly schedule depositor that has an employment tax liability of $1,000 every month in 2020 that defers $200 of the employer’s share of social security tax from its July liability, but deposits the deferred amount of $200 together with its $1,000 deposit for its August tax liability, would report $800 for its July tax liability
Next Page