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View ICR - OIRA Conclusion

OMB Control No: 1545-0029	ICR Reference No: 201005-1545-038
Status: Historical Active	Previous ICR Reference No: 201004-1545-003
Agency/Subagency: TREAS/IRS	Agency Tracking No: Requesting approval by 5/19/2010
Title: Employer's Quarterly Federal Tax Return
Type of Information Collection: Revision of a currently approved collection	Common Form ICR: No
Type of Review Request: Emergency	Approval Requested By: 05/19/2010
OIRA Conclusion Action: Approved without change	Conclusion Date: 05/19/2010
Retrieve Notice of Action (NOA)	Date Received in OIRA: 05/17/2010
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	11/30/2010	6 Months From Approved	05/31/2010
Responses	37,810,463	0	37,810,463
Time Burden (Hours)	388,256,964	0	318,884,262
Cost Burden (Dollars)	0	0	0

Abstract: Form 941 is used by employers to report payments made to employees subject to income and social security/Medicare taxes and the amounts of these taxes. Form 941-PR is used by employers in Puerto Rico to report social security and Medicare taxes only. Form 941-SS is used by employers in the U.S. possessions to report social security and Medicare taxes only. Schedule B is used by employers to record their employment tax liability.

Emergency Justfication: The changes to the 2nd Quarter 2010 Form 941 were necessary allow employers to claim the social security tax exemption, as provided in P.L. 111-147 ( The Hiring Incentives to Restore Employment Act), section 101 (new IRC section 3111(d)). Employers are allowed an exemption for their share of social security taxes paid on qualified wages paid to qualified employees, as defined by P.L. 111-147. Lines 6a thru 6d of Form 941 were added to report the number of these employees, the wages they were paid, and the amount of the exemption. Lines 12c-12e on Form 941 were added to allow the employer a credit for payment of their share of social security taxes paid on qualified wages paid to qualified employees from March 19, 2010 through March 31, 2010. As such, the calculations on existing lines were revised to include the exemption. We have solicited comments through a prior Federal register notice. We will also issue a new 60-day FRN once the final forms are released to the public. Taxpayers must receive the guidance outlined in these forms as soon as possible. Failure to provide these forms to the public could result in an adverse financial impact on the taxpaying public and hinder the mission of the IRS. The new law is effective for business filing the 2nd quarter returns. Thus, we are requesting an emergency Paperwork Reduction Act review May 19, 2010.

Authorizing Statute(s): US Code: 26 USC 3102 Name of Law: Deduction of tax from wages
   US Code: 26 USC 3111(d) Name of Law: Rate of tax
   US Code: 26 USC 3405 Name of Law: Special rules for pensions, annuities, and certain other deferred income
   US Code: 26 USC 3501 Name of Law: Collection and payment of taxes
   US Code: 26 USC 3504 Name of Law: Acts to be performed by agents
   US Code: 26 USC 3101 Name of Law: Rate of tax

Citations for New Statutory Requirements: PL: Pub.L. 111 - 147 101 Name of Law: Hiring Incentives to Restore Employment Act

ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute
Annual Number of Responses	37,810,463	37,810,463	0
Annual Time Burden (Hours)	388,256,964	318,884,262	69,372,702
Annual Cost Burden (Dollars)	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: Form 941 is used by employers to report payments made to employees subject to income and social security/Medicare taxes and the amounts of these taxes. The changes to the 2nd Quarter 2010 Form 941 were necessary to allow employers to claim the social security tax credit and tax exemption, as provided in P.L. 111-147 ( The Hiring Incentives to Restore Employment Act), section 101 (new IRC section 3111(d)). Qualified employers social security tax credit Qualified employers are allowed a credit in the second quarter of 2010 for their share (6.2%) of social security tax on wages/tips paid to qualified employees after March 18, 2010, and before April 1, 2010. Lines 12c-12e on Form 941 were added to allow the employer a credit for payment of their share of social security taxes paid on qualified wages paid to qualified employees from March 19, 2010 through March 31, 2010. Qualified employers social security tax exemption Qualified employers are allowed an exemption for their share (6.2%) of social security taxes on wages/tips paid to qualified employees after March 31, 2010, and before January 1, 2011. Lines 6a thru 6d, of Form 941, were added to report the number of these employees, the wages they were paid, and the amount of the exemption. The result of these changes is a total burden increase of 69,372,702 hours.