IRS Releases New Schedule R for Fiscal/Employer Agents

Schedule R for Form 940 is specifically required for "section 3504 Agents acting on behalf of home care service recipients" (more commonly, Fiscal/Employer Agents serving employers in participant direction programs). The purpose of the Schedule R for Form 940 is to allocate the aggregate information reported on Form 940 to each home care service recipient client (participant direction employer). Fiscal/Employer Agents serving participant direction employers in 2010 must complete and submit a Schedule R with the 2010 Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. This requirement applies to both Vendor and Government Fiscal/Employer Agents.

The IRS is expected to release a "Stakeholder Partners' Headliner" announcing the Schedule R for Form 940 very soon. For more information, follow the National Resource Center for Particpant-Directed Services (NRCPDS) on Facebook for updates.

The Center for Participant-Directed Services is aware of a free tool to support Fiscal/Employer Agents' completion of Schedule R for Form 940. 941RExpress, a product of Annkissam, will be updated by December 18 to support Schedule R for Form 940 (in addition to the current support of Schedule R for Form 941). Check 941RExpress.com on or after December 18, 2010 for more information about using the free tool.

Click here for the form.