Form 941 Changes 2021:
Quarter 2 Vs Quarter 1

1. What are the part 1 changes in Form 941 Quarter 2 vs
Quarter 1 of 2021?

Numerous lines of the Form 941 have been affected, either updated, edited, or added. In the following lines you are able to see a line by line comparison of what employers were required to report in the first quarter of 2021 and what employers will now be reporting for the second quarter.

Line 5a, 5a(i) and 5a(ii)

As you can see, these lines look almost exactly the same between the first and second quarter of 2021. However, the asterisk seen on Form 941 for the second quarter creates an important distinction. For the second quarter, the values on lines 5a(i) and 5a(ii) should reflect only the qualified wages paid after March 31, 2021 for leave taken before April 1, 2021. The value entered on Line 5a should reflect the qualified wages for leave taken after March 31, 2021.

Line 11b

A similar distinction is made in line 11b. Instead of entering the nonrefundable portion of credit of qualified sick and family leave wages from the entire second quarter, employers should enter the non refundable portion of sick and family leave wages for leave taken before April 1, 2021.

Line 11d

Before employers can enter the total nonrefundable credits like they did for the first quarter of 2021, they must enter the non refundable portion of credits for sick and family leave wages on leave taken after April 1, 2021.

Line 11e

Line 11e is a new addition to the Form 941. This line is used to report the amount that the employer paid out in COBRA premium assistance. This amount can be calculated for the second quarter of 2021 using Worksheet 5.

Line 11f

Line 11f is another new addition to the Form 941 for the second quarter of 2021. On this line, employers should report the number of individuals that they provided COBRA premium assistance to.

Line 11g

Because of the need to report nonrefundable sick and family credits before and after April 1, 2021 separately, and the new COBRA premium assistance credit, this total is now reported on line 11g for the second quarter of 2021.

Line 13c

Much like with nonrefundable credits, refundable portions credits for sick and family leave wages will be calculated separately for leave taken before April 1, 2021. This amount can be figured by completing Step 2, line 2k of Worksheet 2.

Line 13e

Before employers can enter the total nonrefundable credits like they did for the first quarter of 2021, they must enter the refundable portion of credits for sick and family leave wages on leave taken
after April 1, 2021.

Line 13f

Before reporting any advances received from filing Form 7200, employers must first report the refundable portion of the new COBRA premium assistance credit. This can also be calculated using the Worksheet 5. Employers can still report advances from the 7200 on the 941, but now it is further down on the form.

Line 13g

For the second quarter of 2021, there are more amounts on lines 13 to add before subtracting advances. This will be calculated on a later line of the Form 941.

Line 13h

This line has been moved further down the 941 Form, employers are still able to request advance for the second quarter of 2021.

Line 13i

This value is not calculated on line 13f like in previous quarters, it is now line 13i, you will also calculate this value differently for the second quarter of 2021.

Line 14

This line has only been adjusted for the second quarter of 2021, instead of subtracting 13g from line 12, employers should subtract 13i.

Line 15

This line has also been adjusted for the second quarter of 2021. Again, employers should use line 13i instead of 13g. If the amount on line 13i is greater than line 12, indicate whether you would prefer that overpayment to be applied to the next return or if you would prefer a refund.