A program update is now available with changes for the 2021 Form 941 Revisions. To download the latest update, go to Tools > Check for Updates.
In previous quarters, qualified sick and family leave wages were reported in Boxes 5a(i) and 5a(ii). However, as of April 1, 2021, these wages are covered by a new law and are now included in Box 5a.
Since you still get credits for these wages, you need to know the totals. The following entries will show the totals at the bottom of the window:
In addition, these wages appear in Boxes 23 and 26 respectively, which you will find on the Form 941(Cont’d) tab of the Print Form 941 window. These totals will be used for Worksheet #3 that will need to be completed.
(See the new Instructions for Form 941 Rev. June 2021.)
Do you have wages that need to be entered separately?
The IRS wants you to separately report any qualified sick or family leave pay that was paid after March 31, 2021 (2nd Quarter Wages) but was payment for time BEFORE April 1, 2021.
The program will not divide the pay between quarters. It will only provide you with the total of what you paid in the second quarter.
This means if you have any qualified wages in the second quarter that were for days in the first quarter, you will need to divide the total qualified wages between the two quarters.
In this example, $200.00 for Sick Leave and $150.00 for Family Leave have been paid after March 31 for leave taken before April 1. This is how you would enter that information (substitute your own calculations).
- Box 5a(i):
- $200.00 for Sick Leave
- Box 5a(ii):
- $150.00 for Family Leave
After these wages are entered, the program subtracts them from
- Box 5a:
- 382,984.93 – 350.00 = 382,634.93
- Qualified Sick Leave included on Line 5a:
- 2591.88 – 200.00 = 2391.88
- Qualified Family Leave included in Line 5a:
- 1,200.00 – 150.00 = 1,050.00
- Boxes 23 and 26 have also been adjusted with the new totals.
These amounts now reflect the correct amount for what was paid after March 31, 2021, for leave taken after March 31, 2021.
Our support department cannot assist in filling out worksheets that are required for Form 941. If you need assistance, please contact your accountant.