American Payroll Association (APA) Basic Guide to Payroll, 2013 Edition
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Beginning with the first quarter of 2010, all agents authorized to file aggregate Form 941, Employer’s Quarterly Federal Tax Return, must attach the new Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, to the aggregate Form 941.
Aggregate Forms 941 are filed by agents approved by the IRS under Code Sec. 3504 by filing Form 2678, Employer/Payer Appointment of Agent, on behalf of each employer. The common law employer, called a on Schedule R, and the Code Sec. 3504 agent are jointly and severally liable for all of the employment taxes.
The agent files a single Form 941, using its own Employer Identification Number that aggregately reports the Form 941 information of all clients that it represents. The Code Sec. 3504 agent must remit all federal employment tax deposits and payments related to these filings using the agent’s EIN. An agent who has more than 15 clients must use sufficient continuation sheets to report the proper amounts for each client. The Schedule R (Form 941) may be filed electronically or by paper submission. However, agents filing for 1,000 or more clients must file a paper return.
The new Schedule R (Form 941), will provide the IRS with client-specific information to support the totals reported by an agent on an aggregate Form 941. It includes a list of the clients as well as a breakdown of their payroll liability. This allows the IRS to reconcile the information for each client with the aggregate totals on the face of the return. The Schedule R (Form 941) instructions have all the required information a Code Sec. 3504 agent must provide for each client on an aggregate Form 941.
(IRS Headliner Volume 290 March 1, 2010; http://www.irs.gov/businesses/small/article/
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