Schedule R (Form 941): Allocation Schedule for Aggregate Form 941 Filers

(Rev. January 2018)

Department of the Treasury — Internal Revenue Service

OMB No. 1545-0029

950417

Employer identification number (EIN) —

Name as shown on Form 941

Type of filer (check one): Section 3504 Agent Certified Professional Employer Organization (CPEO)

Report for calendar year:

Check the quarter (same as Form 941):

1: January, February, March

2: April, May, June

3: July, August, September

4: October, November, December

Read the instructions before you complete Schedule R. Type or print within the boxes. Complete a separate line for the amounts 

allocated to each of your clients. The term “client” as used on this form includes the term “customer.” See the instructions.

 (a)

Client’s 

Employer 

identification 

number (EIN)

(b) 

Type of wages, 

tips, and other 

compensation 

(CPEO Use Only)

(c) 

Wages, tips, and 

other compensation 

allocated to the 

listed client EIN from 

Form 941, line 2

(d) 

Federal income tax 

withheld from wages, 

tips, and other 

compensation allocated 

to the listed client EIN 

from Form 941, line 3

(e) 

Total social security 

and Medicare taxes 

allocated to the 

listed client EIN from 

Form 941, line 5e

(f) 

Section 3121(q) Notice 

and Demand-Tax due 

on unreported tips

allocated to the listed 

client EIN from 

Form 941, line 5f

(g) 

Qualified small business 

payroll tax credit for 

increasing research 

activities allocated to the 

listed client EIN from 

Form 941, line 11

(h) 

Total taxes 

after adjustments 

and credits

allocated to the 

listed client EIN from 

Form 941, line 12

(i) 

Total deposits 

from Form 941, line 13,

plus any payments 

made with the return 

allocated to the listed client EIN 

1 . . . . . . .

2 . . . . . . .

3 . . . . . . .

4 . . . . . . .

5 . . . . . . .

6 . . . . . . .

7 . . . . . . .

8 . . . . . . .

9 . . . . . . .

10 . . . . . . .

11 Subtotals for 

clients. Add all

amounts on lines 

1 through 10 . . . . . . .

12 Enter the 

combined 

subtotal from 

line 24 of all 

Continuation 

Sheets for 

Schedule R . . . . . . .

13 Enter Form 941 

amounts 

for your 

employees . . . . . . .

14 Totals. Add lines

11, 12, and 13.

The column 

totals must 

match the related 

lines on the 

aggregate Form 

941. . . . . . . .

For Paperwork Reduction Act Notice, see the instructions. www.irs.gov/Form941 Cat. No. 49301K Schedule R (Form 941) (Rev. 1-2018)
Page of

Continuation Sheet for Schedule R (Form 941)

(Rev. January 2018)

950517

Employer identification number (EIN) —

Name as shown on Form 941

Type of filer (check one): Section 3504 Agent Certified Professional Employer Organization (CPEO)

Report for calendar year:

Check the quarter (same as Form 941):

1: January, February, March

2: April, May, June

3: July, August, September

4: October, November, December

 (a)

Client’s 

Employer 

identification 

number (EIN)

(b) 

Type of wages, 

tips, and other 

compensation 

(CPEO Use Only)

(c) 

Wages, tips, and 

other compensation 

allocated to the 

listed client EIN from 

Form 941, line 2

(d) 

Federal income tax 

withheld from wages, 

tips, and other 

compensation allocated 

to the listed client EIN 

from Form 941, line 3

(e) 

Total social security 

and Medicare taxes 

allocated to the 

listed client EIN from 

Form 941, line 5e

(f) 

Section 3121(q) Notice 

and Demand-Tax due 

on unreported tips

allocated to the listed 

client EIN from 

Form 941, line 5f

(g) 

Qualified small business 

payroll tax credit for 

increasing research 

activities allocated to the 

listed client EIN from 

Form 941, line 11

(h) 

Total taxes 

after adjustments 

and credits

allocated to the 

listed client EIN from 

Form 941, line 12

(i) 

Total deposits 

from Form 941, line 13,

plus any payments 

made with the return 

allocated to the listed client EIN

1 . . . . . . .

2 . . . . . . .

3 . . . . . . .

4 . . . . . . .

5 . . . . . . .

6 . . . . . . .

7 . . . . . . .

8 . . . . . . .

9 . . . . . . .

10 . . . . . . .

11 . . . . . . .

12 . . . . . . .

13 . . . . . . .

14 . . . . . . .

15 . . . . . . .

16 . . . . . . .

17 . . . . . . .

18 . . . . . . .

19 . . . . . . .

20 . . . . . . .

21 . . . . . . .

22 . . . . . . .

23 . . . . . . .

24 Subtotals for 

clients. Add lines 

1 through 23. 

Include the 

subtotals from 

line 24 on line 12 

of Schedule R. . . . . . . .

Schedule R (Form 941) (Rev. 1-2018)
950617

Schedule R (Form 941) (Rev. 1-2018)

Section references are to the Internal Revenue Code unless otherwise 

noted.

Future Developments

For the latest information about developments related to Schedule R 

and its instructions, such as legislation enacted after they were 

published, go to www.irs.gov/Form941.

What’s New

A certified professional employer organization (CPEO) must attach 

Schedule R to its aggregate Form 941, Employer’s QUARTERLY Federal 

Tax Return.

General Instructions

Purpose of Schedule R 

Use Schedule R to allocate the aggregate information reported on Form 

941 to each client. For purposes of Schedule R, the term “client” means 

(a) an “employer or payer” identified on the Form 2678, Employer/Payer 

Appointment of Agent; (b) a customer who enters into a contract that 

meets the requirements under section 7705(e)(2); or (c) a client who 

enters into a service agreement described under Regulations section 

31.3504-2(b)(2) with a CPEO. If you have more than 10 clients, complete 

as many continuation sheets as necessary. Attach Schedule R, including 

any continuation sheets, to your aggregate Form 941.

Who Must File?

Agents approved by the IRS under section 3504 and CPEOs must 

complete Schedule R each time they file an aggregate Form 941. To 

request approval to act as an agent for an employer under section 3504, 

the agent must file Form 2678 with the IRS. Form 2678 must be 

previously filed and approved by the IRS before filing Schedule R. To 

become a CPEO, the organization must apply through the IRS Online 

Registration System. Visit the IRS website at www.irs.gov/CPEO for 

more information.

When Must You File?

If you are an aggregate Form 941 filer, file Schedule R with your 

aggregate Form 941 every quarter. Agents may file Form 941 and 

Schedule R electronically or by paper submission. CPEOs generally 

must file Form 941 and Schedule R electronically. For more information 

about a CPEO's requirement to file electronically, see Rev. Proc. 

2017-14, 2017-3 I.R.B. 426, available at 

www.irs.gov/irb/2017-03_IRB/ar14.html.

Specific Instructions

Completing Schedule R 

Enter Your Business Information

Carefully enter your EIN and the name of your business at the top of the 

schedule. Make sure they exactly match the EIN and name shown on 

the attached Form 941. Check one of the “Type of filer” boxes to tell us 

if you are a section 3504 agent or a CPEO.

Calendar Year

Enter the calendar year that applies to the quarter checked.

Check the Box for the Quarter

Check the appropriate box of the quarter for which you are filing 

Schedule R. Make sure the quarter checked on the top of the 

Schedule R matches the quarter checked on the attached Form 941.

Client and Employee Information

On Schedule R, including any continuation sheets, you must report the 

following for each client.

Note: When entering amounts over 999.99 on Schedule R, don't enter 

commas.

Column a. The client’s EIN.

Column b (CPEO Use Only). Type of wages, tips, and other 

compensation. Enter a code to report the type of wages, tips, and other 

compensation paid to the individual(s) performing services for the client. 

If you paid more than one type of wages, tips, or other compensation, 

you must use more than one line to report for that client and enter the 

applicable code for each line. The following four codes are the only 

entries that can be made in column b.

• A: Wages, tips, and other compensation paid under section 3511(a).

• B: Wages, tips, and other compensation paid under section 3511(c).

• C: Wages, tips, and other compensation not reported under Code A or 

Code B paid as a payor under a service agreement described in 

Regulations section 31.3504-2(b)(2).

• D: Wages, tips, and other compensation paid as an agent under 

Regulations section 31.3504-1.

Column c. Wages, tips, and other compensation allocated to the listed 

client EIN from Form 941, line 2.

Column d. Total income tax withheld from wages, tips, and other 

compensation allocated to the listed client EIN from Form 941, line 3.

Column e. Total social security and Medicare taxes allocated to the 

listed client EIN from Form 941, line 5e. This amount includes Additional 

Medicare Tax withholding.

Column f. Section 3121(q) Notice and Demand—Tax due on unreported 

tips allocated to the listed client EIN from Form 941, line 5f.

Column g. Qualified small business payroll tax credit for increasing 

research activities allocated to the listed client EIN from Form 941, line 

11. You must attach a separate Form 8974 for each client claiming this 

credit.

Column h. Total taxes after adjustments and credits allocated to the 

listed client EIN from Form 941, line 12.

Column i. Total deposits from Form 941, line 13, plus any payments 

made with the return allocated to the listed client EIN.

You must also report the same information for your employees on 

Schedule R, line 13.

Compare the total of each column on Schedule R, line 14 (including 

your information on line 13), to the amounts reported on the aggregate 

Form 941. For each column total of Schedule R, the relevant line from 

Form 941 is noted in the column heading.

The totals on Schedule R, line 14, must match the totals on Form 941. 

If the totals don't match, there is an error that must be corrected before 

submitting Form 941 and Schedule R.

Paperwork Reduction Act Notice. We ask for the information on

Schedule R to carry out the Internal Revenue laws of the United States. 

You are required to give us this information. We need it to ensure that 

you are complying with these laws and to allow us to figure and collect 

the right amount of tax.

You aren't required to provide the information requested on a form 

that is subject to the Paperwork Reduction Act unless the form displays 

a valid OMB control number. Books or records relating to a form or its 

instructions must be retained as long as their contents may become 

material in the administration of any Internal Revenue law. Generally, tax 

returns and return information are confidential, as required by section 

6103.

The time needed to complete and file Schedule R will vary depending 

on individual circumstances. The estimated average time is:

Recordkeeping . . . . . . . . . . . . 12 hr., 26 min.

Learning about the law or the form . . . . . . . . 12 min.

Preparing, copying, and assembling the form . . . . . 24 min.

If you have comments concerning the accuracy of these time 

estimates or suggestions for making Schedule R simpler, we would be 

happy to hear from you. You can send us comments from 

www.irs.gov/FormComments. Or you can send your comments to 

Internal Revenue Service, Tax Forms and Publications Division, 1111 

Constitution Ave. NW, IR-6526, Washington, DC 20224. Don't send 

Schedule R to this address. Instead, see Where Should You File? in the 

Instructions for Form 941.