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IRS Updates Form 7200, Instructions to Reflect Law Changes

BY: Jyme Mariani, Esq. | 05/21/21

The IRS updated Form 7200, Advance Payment of Employer Credits Due to COVID-19, and its instructions to reflect changes made by recent legislation. The IRS made line changes to account for the COBRA premium assistance credit, created by the American Rescue Plan Act of 2021, which is only available for periods of coverage from April 1 through September 30, 2021.

Changes to Form 7200

Here are the line changes to Form 7200:

  • Part I, Line B is now where an employer should enter the total number of employees it paid qualified wages eligible for the employee retention credit this quarter. Previously, the line was a checkbox for employers to indicate if the business was started on or after January 1, 2020.
  • Part I, Line G is a new line for an employer to enter the number of individuals provided COBRA premium assistance during the quarter for the advance requested.
  • Part I, Line H is a new checkbox if the employer is eligible for the employee retention credit solely because the business is a recovery startup business.
  • Part II, Line 4 is to enter the total COBRA premium assistance provided during the quarter.
  • Part II, Lines 5-8 shift down to account for Line 4. The advance requested is now entered on Line 9.

To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!


Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Payroll Information Resources for the APA.