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Form 941 Tax Credit Worksheet Updated for 2021 (1)

March 11, 2021, 4:45 PM

The worksheet for calculating coronavirus-related employment tax credits was updated in the finalized instructions for the 2021 Form 941, Employer’s Quarterly Federal Tax Return, released March 9 by the Internal Revenue Service.

Worksheet 1 is used to calculate the amounts of the credits for qualified sick and family leave wages and the employee retention credit. Among the changes to the instructions:

Step 1 was updated to take into account the amount of any credit claimed on the new Form 5884-D when calculating the amount of the employer portion of Social Security tax liability remaining after applying certain credits. A new ...