In accordance with your agreement and Form 8655 (Reporting Agent Authorization), this notification serves as confirmation that your third quarter 2020 payroll tax returns and payments have been filed on your behalf by Insperity Payroll Services.
Third quarter report packages are available and include all tax returns that were filed by Insperity. To access your quarterly report packages, log into iSolved and navigate to Return Archive under the Reporting menu.
You can filter the list using the drop-down menus at the top of the screen, as seen below.
Information regarding COVID-19 and your 941s
Form 941 returns for Q3 2020
Your Form 941, Employer’s Quarterly Federal Tax Return, for the third quarter of 2020 may include deferrals and tax credits related to COVID-19 legislation. These forms report:
- CARES Act Employee Retention Credits (ERC) for eligible wages and qualified health plan expenses paid from July 1 – Sept. 30, 2020, if you provided these credit amounts to Insperity Tax by Sept.30, 2020.
- FFCRA leave tax credits for:
- Emergency Paid Sick Leave (EPSL) and Emergency Paid Family Leave (EPFL) wages paid in iSolved from July 1 – Sept. 30, 2020
- Employer Medicare Tax on EPSL and EPFL paid in iSolved from July 1 – Sept. 30, 2020.
- Qualified health plan expenses allocable to EPSL and EPFL (QHPE), if you used the specified iSolved memo codes to record them in payrolls from July 1 – Sept. 30, 2020.
- Adjustments that were sent to Insperity Tax by Sept. 30, 2020 for payrolls between July 1 – Sept. 30, 2020.
- CARES Act Employer Social Security Tax deferrals for payrolls posted after Insperity Tax processed your signed Payroll Tax Deferral Request through the end of the quarter, Sept. 30, 2020.
- Employee social security tax deferral as a result of the Presidential Memorandum for payrolls posted after Insperity Tax processed your signed Request to Enable Employee Social Security Tax Deferrals through the end of the quarter, Sept. 30, 2020.
- Tax credit payments that you received directly from the IRS after filing Form 7200, Advance Payment of Employer Credits Due to COVID-19, if you reported those payments to Insperity Tax by Sept. 30, 2020.
Any tax overpayments that are shown on your Q3 941 were designated as a refund. Refunds are sent directly to you, the employer, from the IRS.
If you have questions about your Form 941, please contact Insperity Tax at ips.tax@insperity.com. They can refer you to a COVID-19 expert for questions about Coronavirus-related legislation, and may be able to help if you are missing a tax credit that should have been reported. Third quarter 941 returns can be amended to include ERC and FFCRA leave credits that were not originally reported. However, returns cannot be amended to defer employer social security taxes that were already deposited.
Form 941 taxes and COVID-19 credits for Q4 2020
COVID-19 tax credits and employee/employer social security tax deferrals may continue in the fourth quarter of 2020. Credits will continue to generate automatically when you process payrolls that include FFCRA Emergency Paid Sick Leave (EPSL) earnings, Emergency Paid Family Leave (EPFL) earnings and related memo codes for qualified health plan expenses (QPHE). If you are eligible for Employee Retention Credit (ERC) in Q4, complete the Insperity COVID-19 Tax Credit Adjustment Form and send it to Insperity Tax, so they can enter your ERC credits in iSolved. The form and instructions can be requested from your payroll specialist.
If you have FFCRA leave or ERC credit available when you process payroll, your 941 tax liabilities will be automatically reduced. If your 941 tax liability is reduced to zero and you still have credit available, it will be applied to subsequent payrolls in the fourth quarter of 2020. If you do not want unused credits to carry forward, you can send the Insperity Request to Stop Tax Credit Carryovers to Insperity Tax and claim your credits directly from the IRS using Form 7200, Advance Payment of Employer Credits Due to COVID-19. You must notify Insperity Tax at ips.tax@insperity.com each time you file Form 7200, so your credit refunds are reflected properly on your tax returns. Do not request payment from the IRS for tax credits that have already been applied to payrolls in iSolved. If you still have unused credit at the end of the quarter, it will be reflected as an overpayment on your Q4 941.
The fourth quarter is the last available quarter to take advantage of COVID-related tax deferrals and credits based on current legislation. As a reminder, deferred taxes will be due beginning in 2021.
Ongoing tax communication
As a reminder, you should send all payroll-related tax communication that you receive to your Insperity payroll specialist for review. Insperity does not receive direct communication regarding your tax accounts from state and federal agencies, and these notices may contain important pieces of tax information needed for correct and timely tax payments and filings. Incorrect and/or missing information may result in penalties and interest assessed by the tax agency. Insperity is not responsible for any penalties and interest that are charged.