© 2021 American Payroll Institute, Inc. Inside this issue... IRS Releases Guidance on Form W-2 Reporting of COVID-19 Leave Wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 DOL Announces Final Tip Rule for Assessing Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 IRS Issues Federal ‘High-Low’ Per Diem Rates Effective October 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 IRS Issues Temporary, Proposed Rules Authorizing Assessment of Erroneously Refunded COVID-19-Related Credit Under ARPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 DOL Updates Minimum Wage for Federal Contractors for 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 FUTA Credit Reduction States Likely to Increase for 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 DOL Extends Effective Date of Rescission for Joint Employer Rule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 SSA Updates AccuWage Online Help Guide, FAQ for 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 APA to Present Year-End Compliance Seminars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Daylight Saving Time Ends November 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 USCIS Extends Evidence of Status for Conditional Permanent Residents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 USCIS Reminds Employers About Requirements During Disasters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Free eBook Answers Top Payroll Questions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 USCIS Reminds Employers on Timeframes for E-Verify TNCs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 IRS Creates Fact Sheet for E-Signatures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 OCSE Revises e-IWO Record Layout . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 IRS Reminds Employers to Classify Workers Correctly. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 DOJ Reaches Settlements With Companies for Discrimination Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 TIGTA Report Examines Effect of COVID-19 on Processing Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 State and Local News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 October 1, 2021 Volume 29 Issue 10 IRS Releases Revised Form 941-X, Instructions The IRS released a revised Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, and its instructions. Both were updated for changes under the American Rescue Plan Act of 2021 (ARPA) and have a July 2021 revision date. The revised form and instructions mainly conform to the draft versions. Which version to use The instructions state that employers can use the revised instructions and the July 2021 revision of Form 941-X for all years for which the statute of limitations on corrections has not expired. The instructions provide a few warnings: Use the corresponding Form 941 instructions. The IRS advises using the specific instructions for Form 941, Employer’s Quarterly Federal Tax Return, for the quarter being corrected since the Form 941-X instructions do not repeat all information included in the Form 941 instructions. For example, the Form 941-X instructions (July revision) do not discuss which employers are eligible to claim the credit for qualified paid sick and family leave wages the employee retention credit (ERC) or the Consolidated Omnibus Budget Reconciliation Act (COBRA) premium assistance credit. Prior revisions of the Form 941 instructions are available (select the link for All Form 941 Revisions under Other Items You May Find Useful). Previous COBRA premium assistance tax credit. The IRS said it is extremely unlikely that any employers would still be providing health insurance coverage for an employee terminated between September 1, 2008, and May 31, 2010, so the agency is no longer accepting claims for the 2008- 2010 COBRA premium assistance credit. However, employers that need to correct a previously claimed 2008-2010 COBRA premium assistance credit for a quarter for which the statute of limitations on corrections has not expired can file the April 2017 revision of Form 941-X and make the corrections on Lines 20a and 20b. Changes to the form Here are the major changes to the Form 941-X: Line 9 has a comment that it is to be used only for qualified sick leave wages paid after March 31, 2020, for leave taken before April 1, 2021. Line 10 has a comment that it is to be used only for qualified family leave wages paid after March 31, 2020, for leave taken before April 1, 2021. Line 17 is now for the nonrefundable portion of credit
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