The Covid-19 related credit for qualified sick and family leave wages can no longer be claimed on Form 941.
What Changed?
The Covid-19 related credit for qualified sick and family leave wages is now limited to leave taken after March 31, 2020 and before October 1, 2021 and may no longer be claimed on Form 941.
Click here to see Form 941 for 2024.
Click here for more information on irs.gov regarding the changes.
Why Did it Change?
For tax periods beginning after December 31, 2023, the lines used to claim the credit for qualified sick pay and family leave wages have been removed from Form 941. This has changed because it would be extremely rare for an employer to pay wages in 2024 for qualified sick and family leave taken after March 31, 2020 and before October 1, 2021.
Below is a screenshot of Form 941 for 2023 that has lines 5a (i) and 5a (ii); these lines were previously used for claiming the Covid-19 credit. They have been removed on Form 941 for 2024.
This change has also been reflected in the program. To use the new form when doing your quarterly closing:
- Go to Tools > Check for Updates to download the latest program update.
- Go to Payroll > Quarterly Tax Reporting > Federal Form 941 (2024).
- If you need to use Form 941 for a quarter in a year prior to 2024, select the Prior Year 941 Forms option and choose the appropriate form in the sub-menu.
