Schedule R (Form 941)
Schedule R is the IRS allocation schedule that CPEOs and Section 3504 agents file with Form 941 to break down aggregate employment tax filings by client.
When a PEO or agent files one aggregate Form 941 covering many clients, Schedule R allocates the wages, taxes, and credits on that return to each client’s EIN. It is the mechanism that keeps your company’s employment tax history attached to your EIN even though someone else filed the return.
Schedule R is a verification tool. Ask the PEO for the portion reflecting your allocation each quarter, reconcile it against invoices, and address access to filing records in the service agreement.