Instructions for Form 943 (2021)

2021

Instructions for Form 943

Department of the Treasury

Internal Revenue Service

Employer's Annual Federal Tax Return for Agricultural Employees

Section references are to the Internal Revenue Code

unless otherwise noted.

Contents

Page

Future Developments . . . . . . . . . . . . . . . . . . . . . . . . 1

What's New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

General Instructions . . . . . . . . . . . . . . . . . . . . . . . . . 7

Purpose of Form 943 . . . . . . . . . . . . . . . . . . . . . 7

Who Must File Form 943? . . . . . . . . . . . . . . . . . . 8

When Must You File? . . . . . . . . . . . . . . . . . . . . . 8

How Should You Complete Form 943? . . . . . . . . . 9

Where Should You File? . . . . . . . . . . . . . . . . . . . 9

Depositing Your Taxes . . . . . . . . . . . . . . . . . . . 10

What About Penalties and Interest? . . . . . . . . . . 11

Specific Instructions . . . . . . . . . . . . . . . . . . . . . . . . 11

Third-Party Designee . . . . . . . . . . . . . . . . . . . . . . . 24

Who Must Sign (Approved Roles) . . . . . . . . . . . . . . 24

Paid Preparer Use Only . . . . . . . . . . . . . . . . . . . . . . 25

How To Get Forms, Instructions, and Publications . . . 25

Worksheet 1. Credit for Qualified Sick and Family

Leave Wages for Leave Taken Before April 1,

2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Worksheet 2. Employee Retention Credit for

Qualified Wages Paid After December 31,

2020, and Before July 1, 2021 . . . . . . . . . . . . . . 27

Worksheet 3. Credit for Qualified Sick and Family

Leave Wages for Leave Taken After March 31,

2021, and Before October 1, 2021 . . . . . . . . . . . 28

Worksheet 4. Employee Retention Credit for

Qualified Wages Paid After June 30, 2021, and

before January 1, 2022 . . . . . . . . . . . . . . . . . . . 29

Worksheet 5. COBRA Premium Assistance

Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Future Developments

For the latest information about developments related to

Form 943 and its instructions, such as legislation enacted

after they were published, go to IRS.gov/Form943.

What's New

Social security and Medicare tax for 2021. The rate of

social security tax on taxable wages, including qualified

sick leave wages and qualified family leave wages for

leave taken after March 31, 2021, and before October 1,

2021, is 6.2% (0.062) each for the employer and

employee or 12.4% (0.124) for both. Qualified sick leave

wages and qualified family leave wages for leave taken

before April 1, 2021, aren't subject to the employer share

of social security tax; therefore, the tax rate on these

wages is 6.2% (0.062). The social security wage base

limit is $142,800.

Dec 20, 2021

The Medicare tax rate is 1.45% (0.0145) each for the

employee and employer, unchanged from 2020. There is

no wage base limit for Medicare tax.

The COVID-19 related credit for qualified sick and

family leave wages has been extended and amended. The Families First Coronavirus Response Act

(FFCRA) was amended by legislation. The FFCRA

requirement that employers provide paid sick and family

leave for reasons related to COVID-19 (the employer

mandate) expired on December 31, 2020; however, the

COVID-related Tax Relief Act of 2020 extends the periods

for which employers providing leave that otherwise meets

the requirements of the FFCRA may continue to claim tax

credits for qualified sick and family leave wages paid for

leave taken before April 1, 2021. The American Rescue

Plan Act of 2021 (the ARP) adds new sections 3131,

3132, and 3133 to the Internal Revenue Code to provide

credits for qualified sick and family leave wages similar to

the credits that were previously enacted under the FFCRA

and amended and extended by the COVID-related Tax

Relief Act of 2020. The credits under sections 3131 and

3132 are available for qualified leave wages paid for leave

taken after March 31, 2021, and before October 1, 2021.

Below are the major changes made under the ARP.

• The ARP keeps the daily wage thresholds that

previously existed. The aggregate cap on qualified sick

leave wages remains at 80 hours (10 days), but the

limitation on the number of days resets with respect to

leave taken by employees beginning on April 1, 2021. The

aggregate cap on qualified family leave wages increases

to $12,000 from the previous cap of $10,000, and the

aggregate cap resets with respect to leave taken by

employees beginning on April 1, 2021.

• The ARP also created a new category of leave under

the Emergency Paid Sick Leave Act (EPSLA) and the

Expanded Family and Medical Leave Act (Expanded

FMLA) to include the time the employee is seeking or

awaiting the results of a diagnostic test for, or a medical

diagnosis of, COVID-19 (and the employee has been

exposed to COVID-19 or the employee's employer has

requested such test or diagnosis), or the employee is

obtaining or accompanying an individual who is obtaining

immunizations related to COVID-19 or recovering from or

caring for an individual recovering from an injury,

disability, illness, or condition related to such

immunization. Additionally, employers may provide

employees with paid family leave if the employee is

unable to work due to any of the conditions for which

eligible employers may provide paid sick leave under the

EPSLA.

• The credits are still increased by the qualified health

plan expenses allocable to the qualified sick and family

leave wages, but the credits are now also increased,

subject to the qualified leave wage limitations, by certain

amounts paid under collective bargaining agreements that

Cat. No. 25976L

through which the credit may be claimed to qualified

wages paid before July 1, 2021.

The ARP adds new section 3134 to the Internal

Revenue Code to provide an employee retention credit

similar to the credit that was previously enacted under the

CARES Act and amended and extended by the Taxpayer

Certainty and Disaster Tax Relief Act of 2020. Generally,

the rules for the employee retention credit for qualified

wages paid before July 1, 2021, and qualified wages paid

after June 30, 2021, are substantially similar. However,

the Infrastructure Investment and Jobs Act (Infrastructure

Act) amends section 3134 of the Internal Revenue Code,

as enacted under the ARP, to limit the availability of the

employee retention credit in the fourth quarter of 2021 to

employers that are recovery startup businesses, as

defined in section 3134(c)(5). Thus, for wages paid after

September 30, 2021, and before January 1, 2022, only

the wages paid by recovery startup businesses can be

qualified wages as described in these instructions. See

Recovery startup business, later, for more information

about a recovery startup business.

Qualified wages for the employee retention credit under

section 3134 don't include wages taken into account for

credits under sections 41, 45A, 45P, 45S, 51, 1396, 3131,

and 3132. Additionally, qualified wages for the employee

retention credit can't include amounts used as payroll

costs for a Small Business Interruption Loan under the

PPP that is forgiven or amounts used as payroll costs for

shuttered operator grants and restaurant revitalization

grants.

For wages paid before July 1, 2021, the nonrefundable

portion of the employee retention credit is against the

employer share of social security tax. However, for wages

paid after June 30, 2021, the nonrefundable portion of the

employee retention credit is against the employer share of

Medicare tax. The nonrefundable portion of the credit is

still claimed on line 12c and, if applicable, the refundable

portion of the credit is still claimed on line 14e. For more

information, see the instructions for line 12c and line 14e,

later. Use Worksheet 2 to figure the credit for wages paid

before July 1, 2021. Use Worksheet 4 to figure the credit

for wages paid after June 30, 2021, and before January 1,

2022.

See Notice 2021-23, 2021-16 I.R.B. 1113, available at

IRS.gov/irb/2021-16_IRB#NOT-2021-23, for guidance on

the employee retention credit provided under section

2301 of the CARES Act, as amended by section 207 of

the Taxpayer Certainty and Disaster Tax Relief Act of

2020, for qualified wages paid after December 31, 2020,

and before July 1, 2021. See Notice 2021-49, 2021-34

I.R.B. 316, available at IRS.gov/irb/

2021-34_IRB#NOT-2021-49, for guidance on the

employee retention credit provided under the ARP for

wages paid after June 30, 2021, and before January 1,

2022. Notice 2021-49 also discusses miscellaneous

issues that apply to all of 2021. See Notice 2021-65,

2021-51 I.R.B. 880, available at IRS.gov/irb/

2021-51_IRB#NOT-2021-65 for modifications to Notice

2021-49 under the Infrastructure Act. For more

information about the employee retention credit, go to

IRS.gov/ERC.

are properly allocable to the qualified leave wages. The

collectively bargained contributions paid by an eligible

employer that are eligible for the credit are collectively

bargained defined benefit pension plan contributions and

collectively bargained apprenticeship program

contributions that are properly allocable to qualified leave

wages.

• Under section 3133, the credits are increased by the

amount of the employer share of social security tax and

Medicare tax on the qualified sick and family leave wages.

• Governmental employers (except for the federal

government and its agencies and instrumentalities unless

described in section 501(c)(1)) may now claim the credits.

• Generally, the same wages can't be used as both

qualified sick leave wages and qualified family leave

wages. Additionally, you may not benefit from both the

credit for qualified sick and family leave wages and the

employee retention credit with respect to the same wages.

The credit for qualified sick leave wages and qualified

family leave wages doesn't apply to wages taken into

account as payroll costs for a Small Business Interruption

Loan under the Paycheck Protection Program (PPP) that

is forgiven or in connection with shuttered operator grants

and restaurant revitalization grants.

• The credit for qualified sick and family leave wages isn't

allowed if the employer provides the leave in a manner

that discriminates in favor of highly compensated

employees, full-time employees, or employees on the

basis of employment tenure. See Highly compensated

employee, later, for the definition.

How you report qualified sick and family leave wages

and the credit for qualified sick and family leave wages

has changed. Taxable qualified sick and family leave

wages for leave taken after March 31, 2021, and before

October 1, 2021, are included on line 2 and taxed at

12.4% for social security tax purposes on line 3. However,

if you're reporting any qualified sick and family leave

wages for leave taken before April 1, 2021, these wages

are reported on lines 2a and 2b, respectively, and taxed at

6.2% for social security tax purposes on lines 3a and 3b.

For leave taken before April 1, 2021, the credit for

qualified sick and family leave wages is reported on

line 12b (nonrefundable portion) and, if applicable,

line 14d (refundable portion). For leave taken after March

31, 2021, and before October 1, 2021, the credit for

qualified sick and family leave wages is reported on

line 12d (nonrefundable portion) and, if applicable, line 14f

(refundable portion); and the nonrefundable portion of the

credit is against the employer share of Medicare tax. For

more information, see the instructions for line 12b,

line 12d, line 14d, and line 14f, later.

Use Worksheet 1 to figure the credit for leave taken

before April 1, 2021. Use Worksheet 3 to figure the credit

for leave taken after March 31, 2021, and before October

1, 2021. For more information about the credit for qualified

sick and family leave wages, go to IRS.gov/PLC.

The COVID-19 related employee retention credit has

been extended and amended. The Coronavirus Aid,

Relief, and Economic Security (CARES) Act was

amended by legislation. The Taxpayer Certainty and

Disaster Tax Relief Act of 2020 modifies the calculation of

the employee retention credit and extends the date

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Instructions for Form 943 (2021)

a taxpayer in excess of the amount to which the taxpayer

is entitled is an erroneous refund that the employer must

repay, regardless of whether the refund or credit is

advanced. Accordingly, if an employer requested and

received an advance payment of the employee retention

credit for the fourth calendar quarter of 2021, and the

employer isn't a recovery startup business, the employer

isn't eligible for an employee retention credit and must

repay the amount of the advance. Employers who need to

repay excess advance payments of the employee

retention credit must do so by January 31, 2022, by

including the advance payment on their 2021 Form 943,

Part 1, line 14i, and paying any balance due by January

31, 2022.

New credit for COBRA premium assistance payments. Section 9501 of the ARP provides for COBRA

premium assistance in the form of a full reduction in the

premium otherwise payable by certain individuals and

their families who elect COBRA continuation coverage

due to a loss of coverage as the result of a reduction in

hours or an involuntary termination of employment

(assistance eligible individuals). This COBRA premium

assistance is available for periods of coverage beginning

on or after April 1, 2021, through periods of coverage

beginning on or before September 30, 2021. Some

multiemployer plans and insurers don't normally file an

employment tax return but will need to file one if they want

to claim the COBRA premium assistance credit.

Section 9501(b) of the ARP adds new section 6432 to

the Internal Revenue Code that allows a credit (COBRA

premium assistance credit) against the employer share of

Medicare tax in an amount equal to the premiums not paid

by assistance eligible individuals for COBRA continuation

coverage by reason of section 9501(a)(1) of the ARP. The

nonrefundable portion of the credit is reported on line 12e

and, if applicable, the refundable portion of the credit is

reported on line 14g. If you claim this credit, you must also

report the number of individuals provided COBRA

premium assistance on line 12f. Use Worksheet 5 to

figure the credit. For more information, see the

instructions for line 12e, line 12f, and line 14g, later. For

more information on COBRA premium assistance

payments and the credit, see Notice 2021-31, 2021-23

I.R.B. 1173, available at IRS.gov/irb/

2021-23_IRB#NOT-2021-31; and Notice 2021-46,

2021-33 I.R.B. 305, available at IRS.gov/irb/

2021-33_IRB#NOT-2021-46.

Deferral of the employer share of social security tax

expired. The CARES Act allowed employers to defer the

deposit and payment of the employer share of social

security tax. The deferred amount of the employer share

of social security tax was only available for deposits due

on or after March 27, 2020, and before January 1, 2021,

as well as deposits and payments due after January 1,

2021, that are required for wages paid on or after March

27, 2020, and before January 1, 2021. Therefore, the line

previously used for the employer deferral has been

“Reserved for future use.” One-half of the employer share

of social security tax is due by December 31, 2021, and

the remainder is due by December 31, 2022. Because

both December 31, 2021, and December 31, 2022, are

nonbusiness days, payments made on the next business

day will be considered timely. Any payments or deposits

you make before December 31, 2021, are first applied

against your payment due on December 31, 2021, and

then applied against your payment due on December 31,

2022. For more information about the deferral of

employment tax deposits, go to IRS.gov/ETD. See Paying

the deferred amount of the employer share of social

security tax and How to pay the deferred amount of the

employer and employee share of social security tax, later,

for information about paying the deferred amount of the

employer share of social security tax.

Advance payment of COVID-19 credits extended.

Based on the extensions of the credit for qualified sick

and family leave wages and the employee retention credit,

and the new credit for COBRA premium assistance

payments, discussed above, Form 7200, Advance

Payment of Employer Credits Due to COVID-19, may be

filed to request an advance payment. For more

information, including information on which employers are

eligible to request an advance payment, the deadlines for

requesting an advance, and the amount that can be

advanced, see the Instructions for Form 7200.

The Infrastructure Act amends section 3134 of the

Internal Revenue Code, as enacted under the ARP, to

limit the availability of the employee retention credit in the

fourth quarter of 2021 to employers that are recovery

startup businesses, as defined in section 3134(c)(5). See

Recovery startup business, later, for more information

about a recovery startup business. Some employers that

are no longer eligible to claim the employee retention

credit for the fourth quarter of 2021 may have already

submitted Form 7200 to request an advance payment of

the employee retention credit for the fourth quarter of

2021. If the Form 7200 hasn't been processed, the IRS

will use the employer's indication of whether it is a

recovery startup business (Form 7200, Part 1, line H) as

part of the determination regarding whether the Form

7200 claiming the employee retention credit in the fourth

quarter of 2021 should be accepted or rejected. A refund

or credit of any portion of the employee retention credit to

Instructions for Form 943 (2021)

Deferral of the employee share of social security tax

expired. The Presidential Memorandum on Deferring

Payroll Tax Obligations in Light of the Ongoing COVID-19

Disaster, issued on August 8, 2020, directed the

Secretary of the Treasury to defer the withholding,

deposit, and payment of the employee share of social

security tax on wages paid during the period from

September 1, 2020, through December 31, 2020. The

deferral of the withholding and payment of the employee

share of social security tax was available for employees

whose social security wages paid for a biweekly pay

period were less than $4,000, or the equivalent threshold

amount for other pay periods. The line previously used for

the employee deferral has been “Reserved for future use.”

The COVID-related Tax Relief Act of 2020 defers the due

date for the withholding and payment of the employee

share of social security tax until the period beginning on

January 1, 2021, and ending on December 31, 2021. For

more information about the deferral of employee social

security tax, see Notice 2020-65, 2020-38 I.R.B. 567,

available at IRS.gov/irb/2020-38_IRB#NOT-2020-65; and

Notice 2021-11, 2021-06 I.R.B. 827, available at Notice

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employee. The employer is liable to pay the deferred

taxes to the IRS and must do so before January 1, 2022,

to avoid interest, penalties, and additions to tax on those

amounts. Because January 1, 2022, is a nonbusiness

day, payments made on January 3, 2022, will be

considered timely. Payment of the deferral isn't reported

on Form 943. For more information about the deferral of

the employee share of social security tax, see Notice

2020-65, and Notice 2021-11.

2021-11. Also see Paying the deferred amount of the

employee share of social security tax and How to pay the

deferred amount of the employer and employee share of

social security tax, later, for information about paying the

deferred amount of the employee share of social security

tax.

New payroll tax credit for certain tax-exempt organizations affected by qualified disasters. Section 303(d)

of the Taxpayer Certainty and Disaster Tax Relief Act of

2020 allows for a new payroll tax credit for certain

tax-exempt organizations affected by certain qualified

disasters not related to COVID-19. This new credit will be

claimed on new Form 5884-D (not on Form 943). Form

5884-D is filed after the Form 943 for the year for which

the credit is being claimed has been filed. If you will claim

this credit on Form 5884-D for 2021 and you're also

claiming a credit for qualified sick and family leave wages

for leave taken before April 1, 2021, and/or the employee

retention credit for wages paid before July 1, 2021, you

must include any credit that will be claimed on Form

5884-D on Worksheet 1 and/or Worksheet 2, respectively.

For more information about this credit. go to IRS.gov/

Form5884D.

How to pay the deferred amount of the employer and

employee share of social security tax. You may pay

the amount you owe electronically using the Electronic

Federal Tax Payment System (EFTPS), by credit or debit

card, or by a check or money order. The preferred method

of payment is EFTPS. For more information, go to

EFTPS.gov, or call 800-555-4477 or 800-733-4829

(TDD). To pay the deferred amount using EFTPS, select

Form 943, calendar year 2020, and the option to pay the

deferred amount.

To pay by credit or debit card, go to IRS.gov/

PayByCard. If you pay by check or money order, include a

2020 Form 943-V, Payment Voucher. The 2020 Form

943-V is on page 5 of Form 943 and is available at

IRS.gov/Form943 (select the link for “All Revisions for

Form 943” under “Other Items You May Find Useful”).

Make the check or money order payable to “United States

Treasury.” Enter your EIN, “Form 943,” and “2020” on your

check or money order.

Payments should be sent to:

Reminders

Paying the deferred amount of the employer share of

social security tax. One-half of the employer share of

social security tax is due by December 31, 2021, and the

remainder is due by December 31, 2022. Because both

December 31, 2021, and December 31, 2022, are

nonbusiness days, payments made on the next business

day will be considered timely. Any payments or deposits

you make before December 31, 2021, are first applied

against your payment due on December 31, 2021, and

then applied against your payment due on December 31,

2022. For example, if your employer share of social

security tax for 2020 was $20,000 and you deposited

$5,000 of the $20,000 during 2020 and you deferred

$15,000 on Form 943, line 14b, then you must pay $5,000

by December 31, 2021, and $10,000 by December 31,

2022. However, if your employer share of social security

tax for 2020 was $20,000 and you deposited $15,000 of

the $20,000 during 2020 and you deferred $5,000 on

Form 943, line 14b, then you don't need to pay any

deferred amount by December 31, 2021, because 50% of

the amount that could have been deferred ($10,000) has

already been paid and is first applied against your

payment that would be due on December 31, 2021.

Accordingly, you must pay the $5,000 deferral by

December 31, 2022. Payment of the deferral isn't reported

on Form 943. For additional information, go to IRS.gov/

ETD.

Department of the Treasury

Internal Revenue Service

Ogden, UT 84201-0030

or

Department of the Treasury

Internal Revenue Service

Kansas City, MO

64999-0030

Send your payment to the address above that is in the

same state as the address to which you would mail

returns filed without a payment, as shown under Where

Should You File, later. For more information about the

deferral of social security tax, go to IRS.gov/ETD and see

Notice 2020-65 and Notice 2021-11.

Qualified small business payroll tax credit for increasing research activities. For tax years beginning

after 2015, a qualified small business may elect to claim

up to $250,000 of its credit for increasing research

activities as a payroll tax credit against the employer

share of social security tax. The payroll tax credit election

must be made on or before the due date of the originally

filed income tax return (including extensions). The portion

of the credit used against the employer share of social

security tax is allowed in the first calendar quarter

beginning after the date that the qualified small business

filed its income tax return. The first Form 943 that you

could claim this credit on is Form 943 filed for calendar

year 2017. The election and determination of the credit

amount that will be used against the employer share of

social security tax are made on Form 6765, Credit for

Increasing Research Activities. The amount from Form

6765, line 44, must then be reported on Form 8974,

Qualified Small Business Payroll Tax Credit for Increasing

Research Activities. Form 8974 is used to determine the

Paying the deferred amount of the employee share of

social security tax. The due date for the withholding

and payment of the employee share of social security tax

is postponed until the period beginning on January 1,

2021, and ending on December 31, 2021. The employer

must withhold and pay the total deferred employee share

of social security tax ratably from wages paid to the

employee between January 1, 2021, and December 31,

2021. If necessary, the employer may make arrangements

to otherwise collect the total deferred taxes from the

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Instructions for Form 943 (2021)

employees. For more information on the different types of

third-party payer arrangements, see section 16 of Pub. 15.

amount of the credit that can be used in the current year.

The amount from Form 8974, line 12, is reported on Form

943, line 12a. If you're claiming the research payroll tax

credit on your Form 943, you must attach Form 8974 to

Form 943. For more information about the payroll tax

credit, see Notice 2017-23, 2017-16 I.R.B. 1100, available

at IRS.gov/irb/2017-16_IRB#NOT-2017-23; and IRS.gov/

ResearchPayrollTC. Also see Adjusting tax liability for

nonrefundable credits claimed on lines 12a, 12b, 12c,

12d, and 12e, later.

COVID-19 employment tax credits when return filed

by a third-party payer. If you're the common-law

employer of the individuals that are paid qualified sick or

family leave wages, paid wages qualifying for the

employee retention credit, and/or provided COBRA

premium assistance, you're entitled to the credit for the

qualified sick and family leave wages, the employee

retention credit, and/or the COBRA premium assistance

credit, regardless of whether you use a third-party payer

(such as a PEO, CPEO, or section 3504 agent) to report

and pay your federal employment taxes. The third-party

payer isn't entitled to the credits with respect to the wages

and taxes it remits on your behalf, or the COBRA premium

assistance it remits on your behalf (regardless of whether

the third party is considered an "employer" for other

purposes). With respect to the COBRA premium

assistance credit, the preceding sentences assume the

common-law employer is the person to whom premiums

are payable for purposes of the credit. If the insurer or

multiemployer plan is the person to whom premiums are

payable, the references to employer in this paragraph

should be read to refer to the insurer or multiemployer

plan, as applicable.

Under an exception to the rule that only the

common-law employer is entitled to the COBRA premium

assistance credit even if the common-law employer uses

a third-party payer, a third-party payer is entitled to the

credit if it is treated as the person to whom premiums are

payable. A third-party payer is treated as the person to

whom premiums are payable if it:

• Maintains the group health plan;

• Is considered the sponsor of the group health plan and

is subject to the applicable Department of Labor (DOL)

COBRA guidance, including providing the COBRA

election notices to qualified beneficiaries; and

• Would have received the COBRA premium payments

directly from the assistance eligible individuals were it not

for the COBRA premium assistance.

If a third-party payer satisfies the above conditions, the

third-party payer's clients aren't eligible for the COBRA

premium assistance credit or an advance payment of the

COBRA premium assistance credit. Third-party payers

that are considered the person to whom premiums are

payable may, in anticipation of receiving the COBRA

premium assistance credit, reduce the deposits of federal

employment taxes relating to their own employees (that is,

those employees for whom they are filing as the

common-law employer, rather than as a third-party payer)

on the day they become eligible for the credit. If the

anticipated credit exceeds the available reduction of these

deposits, the third-party payer may file Form 7200 to

request an advance after the payroll period in which the

third-party payer becomes entitled to the credit.

Certification program for professional employer organizations (PEOs). The Stephen Beck Jr., ABLE Act of

2014 required the IRS to establish a voluntary certification

program for PEOs. PEOs handle various payroll

administration and tax reporting responsibilities for their

business clients and are typically paid a fee based on

payroll costs. To become and remain certified under the

certification program, certified professional employer

organizations (CPEOs) must meet various requirements

described in sections 3511 and 7705 and related

published guidance. Certification as a CPEO may affect

the employment tax liabilities of both the CPEO and its

customers. A CPEO is generally treated for employment

tax purposes as the employer of any individual who

performs services for a customer of the CPEO and is

covered by a contract described in section 7705(e)(2)

between the CPEO and the customer (CPEO contract),

but only for wages and other compensation paid to the

individual by the CPEO. To become a CPEO, the

organization must apply through the IRS Online

Registration System. For more information or to apply to

become a CPEO, go to IRS.gov/CPEO.

CPEOs must generally file Form 943 and Schedule R

(Form 943), Allocation Schedule for Aggregate Form 943

Filers, electronically. For more information about a

CPEO's requirement to file electronically, see Rev. Proc.

2017-14, 2017-3 I.R.B. 426, available at IRS.gov/irb/

2017-03_IRB#RP-2017-14.

Outsourcing payroll duties. Generally, as an employer,

you’re responsible to ensure that tax returns are filed and

deposits and payments are made, even if you contract

with a third party to perform these acts. You remain

responsible if the third party fails to perform any required

action. Before you choose to outsource any of your payroll

and related tax duties (that is, withholding, reporting, and

paying over social security, Medicare, FUTA, and income

taxes) to a third-party payer, such as a payroll service

provider or reporting agent, go to IRS.gov/

OutsourcingPayrollDuties for helpful information on this

topic. If a CPEO pays wages and other compensation to

an individual performing services for you, and the services

are covered by a contract described in section 7705(e)(2)

between you and the CPEO (CPEO contract), then the

CPEO is generally treated for employment tax purposes

as the employer, but only for wages and other

compensation paid to the individual by the CPEO.

However, with respect to certain employees covered by a

CPEO contract, you may also be treated as an employer

of the employees and, consequently, may also be liable

for federal employment taxes imposed on wages and

other compensation paid by the CPEO to such

Instructions for Form 943 (2021)

Aggregate Form 943 filers. Approved section 3504

agents and CPEOs must complete and file Schedule R

(Form 943) when filing an aggregate Form 943. Aggregate

Forms 943 are filed by agents approved by the IRS under

section 3504. To request approval to act as an agent for

an employer, the agent files Form 2678 with the IRS

unless you're a state or local government agency acting

-5-

as an agent under the special procedures provided in

Rev. Proc. 2013-39, 2013-52 I.R.B. 830, available at

IRS.gov/irb/2013-52_IRB#RP-2013-39. Aggregate Forms

943 are also filed by CPEOs approved by the IRS under

section 7705. To become a CPEO, the organization must

apply through the IRS Online Registration System at

IRS.gov/CPEO. CPEOs file Form 8973, Certified

Professional Employer Organization/Customer Reporting

Agreement, to notify the IRS that they started or ended a

service contract with a customer. CPEOs must generally

file Form 943 and Schedule R (Form 943) electronically.

For more information about a CPEO’s requirement to file

electronically, see Rev. Proc. 2017-14, 2017-3 I.R.B. 426,

available at IRS.gov/irb/2017-03_IRB#RP-2017-14.

Other third-party payers that file aggregate Forms 943,

such as non-certified PEOs, must complete and file

Schedule R (Form 943) if they have clients that are

claiming the qualified small business payroll tax credit for

increasing research activities, the credit for qualified sick

and family leave wages, the employee retention credit,

and/or the COBRA premium assistance credit.

Correcting a previously filed Form 943. If you

discover an error on a previously filed Form 943, or if you

otherwise need to amend a previously filed Form 943,

make the correction using Form 943-X. Form 943-X is

filed separately from Form 943. For more information, see

the Instructions for Form 943-X, section 9 of Pub. 51, or

go to IRS.gov/CorrectingEmploymentTaxes.

If you change your business name, business address, or responsible party. Notify the IRS immediately

if you change your business name, business address, or

responsible party.

• Write to the IRS office where you file your returns (using

the Without a payment address under Where Should You

File, later) to notify the IRS of any business name change.

See Pub. 1635 to see if you need to apply for a new

employer identification number (EIN).

• Complete and mail Form 8822-B to notify the IRS of a

business address or responsible party change. Don't mail

Form 8822-B with your Form 943. For a definition of

“responsible party,” see the Instructions for Form SS-4.

Federal tax deposits must be made by electronic

funds transfer (EFT). You must use EFT to make all

federal tax deposits. Generally, an EFT is made using

EFTPS. If you don't want to use EFTPS, you can arrange

for your tax professional, financial institution, payroll

service, or other trusted third party to make electronic

deposits on your behalf. Also, you may arrange for your

financial institution to initiate a same-day wire payment on

your behalf. EFTPS is a free service provided by the

Department of the Treasury. Services provided by your

tax professional, financial institution, payroll service, or

other third party may have a fee.

For more information on making federal tax deposits,

see section 7 of Pub. 51. To get more information about

EFTPS or to enroll in EFTPS, go to EFTPS.gov, or call

800-555-4477 or 800-733-4829 (TDD). Additional

information about EFTPS is also available in Pub. 966.

If both an employer and a section 3504 authorized

TIP agent (or CPEO or other third-party payer) paid

wages to an employee during the year, both the

employer and the section 3504 authorized agent (or

CPEO or other third-party payer, if applicable) should file

Form 943 reporting the wages each entity paid to the

employee during the year and issue Forms W-2 reporting

the wages each entity paid to the employee during the

year.

If a third-party payer of sick pay is also paying qualified

sick leave wages on behalf of an employer, the third party

would be making the payments as an agent of the

employer. The employer is required to do the reporting

and payment of employment taxes with respect to the

qualified sick leave wages and claim the credit for the

qualified sick leave wages, unless the employer has an

agency agreement with the third-party payer that requires

the third-party payer to do the collecting, reporting, and/or

paying or depositing employment taxes on the qualified

sick leave wages. If the employer has an agency

agreement with the third-party payer, the third-party payer

includes the qualified sick leave wages on the third party's

aggregate Form 943, claims the sick leave credit on

behalf of the employer on the aggregate Form 943, and

separately reports the credit allocable to the employers on

Schedule R (Form 943). See section 6 of Pub. 15-A,

Employer's Supplemental Tax Guide, for more information

about sick pay reporting.

If a third-party payer is considered the person to whom

COBRA premiums are payable, as discussed earlier

under COVID-19 employment tax credits when return filed

by a third-party payer, the third party must include the

applicable credit amount on Schedule R (Form 943),

column n, line 8.

For an EFTPS deposit to be on time, you must

submit the deposit by 8 p.m. Eastern time the day

CAUTION before the date the deposit is due.

!

Same-day wire payment option. If you fail to submit a

deposit transaction on EFTPS by 8 p.m. Eastern time the

day before the date a deposit is due, you can still make

your deposit on time by using the Federal Tax Collection

Service (FTCS) to make a same-day wire payment. To

use the same-day wire payment method, you will need to

make arrangements with your financial institution ahead of

time. Please check with your financial institution regarding

availability, deadlines, and costs. Your financial institution

may charge you a fee for payments made this way. To

learn more about the information you will need to give

your financial institution to make a same-day wire

payment, go to IRS.gov/SameDayWire.

Timeliness of federal tax deposits. If a deposit is

required to be made on a day that isn't a business day, the

deposit is considered timely if it is made by the close of

the next business day. A business day is any day other

than a Saturday, Sunday, or legal holiday. The term “legal

holiday” for deposit purposes includes only those legal

holidays in the District of Columbia. Legal holidays in the

District of Columbia are provided in section 7 of Pub. 51.

Work opportunity tax credit for qualified tax-exempt

organizations hiring qualified veterans. Qualified

tax-exempt organizations that hire eligible unemployed

veterans may be able to claim the work opportunity tax

credit against their payroll tax liability using Form 5884-C.

For more information, go to IRS.gov/WOTC.

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Instructions for Form 943 (2021)

that haven't elected to be taxed as corporations must

report and pay employment taxes on wages paid to their

employees using the entities' own names and EINs. See

Regulations sections 1.1361-4(a)(7) and 301.7701-2(c)(2)

(iv).

Electronic filing and payment. Businesses can enjoy

the benefits of filing tax returns and paying their federal

taxes electronically. Whether you rely on a tax

professional or handle your own taxes, the IRS offers you

convenient programs to make filing and paying easier.

Spend less time worrying about taxes and more time

running your business. Use e-file and EFTPS to your

benefit.

• For e-file, go to IRS.gov/EmploymentEfile for additional

information. A fee may be charged to file electronically.

• For EFTPS, go to EFTPS.gov or call EFTPS Customer

Service at 800-555-4477 or 800-733-4829 (TDD) for

additional information.

• For electronic filing of Forms W-2, Wage and Tax

Statement, go to SSA.gov/employer. You may be required

to file Forms W-2 electronically. For details, see the

General Instructions for Forms W-2 and W-3.

Where can you get telephone help? For answers to

your questions about completing Form 943 or tax deposit

rules, you can call the IRS at 800-829-4933 or

800-829-4059 (TDD/TTY for persons who are deaf, hard

of hearing, or have a speech disability), Monday–Friday

from 7:00 a.m. to 7:00 p.m. local time (Alaska and Hawaii

follow Pacific time).

Photographs of Missing Children The IRS is a proud

partner with the National Center for Missing & Exploited

Children® (NCMEC). Photographs of missing children

selected by the Center may appear in instructions on

pages that would otherwise be blank. You can help bring

these children home by looking at the photographs and

calling 1-800-THE-LOST (1-800-843-5678) if you

recognize a child.

If you're filing your tax return or paying your

federal taxes electronically, a valid EIN is required

CAUTION at the time the return is filed or the payment is

made. If a valid EIN isn't provided, the return or payment

won't be processed. This may result in penalties. See

How Should You Complete Form 943, later, for more

information about applying for an EIN.

!

General Instructions

Purpose of Form 943

Always be sure the EIN on the form you file

TIP exactly matches the EIN the IRS assigned to your

business. Don't use your SSN or ITIN on forms

that ask for an EIN. If you used an EIN (including a prior

owner's EIN) on Form 943 that is different from the EIN

reported on Form W-3, see Box h—Other EIN used this

year in the General Instructions for Forms W-2 and W-3.

Filing a Form 943 with an incorrect EIN or using another

business's EIN may result in penalties and delays in

processing your return.

These instructions give you some background information

about Form 943. They tell you who must file Form 943,

how to complete it line by line, and when and where to file

it.

If you want more in-depth information about payroll tax

topics relating to Form 943, see Pub. 51 or go to IRS.gov/

EmploymentTaxes. For tax information relevant to

agricultural employers, go to IRS.gov/

AgricultureTaxCenter.

Federal law requires you, as an employer, to withhold

certain taxes from your employees' pay. Each time you

pay wages, you must withhold—or take out of your

employees' pay—certain amounts for federal income tax,

social security tax, and Medicare tax. You must also

withhold Additional Medicare Tax from wages you pay to

an employee in excess of $200,000 in a calendar year.

Under the withholding system, taxes withheld from your

employees are credited to your employees in payment of

their tax liabilities.

Electronic funds withdrawal (EFW). If you file Form

943 electronically, you can e-file and use EFW to pay the

balance due in a single step using tax preparation

software or through a tax professional. However, don't use

EFW to make federal tax deposits. For more information

on paying your taxes using EFW, go to IRS.gov/EFW.

Credit or debit card payments. You can pay the

balance due shown on Form 943 by credit or debit card.

Your payment will be processed by a payment processor

who will charge a processing fee. Don't use a credit or

debit card to make federal tax deposits. For more

information on paying your taxes with a credit or debit

card, go to IRS.gov/PayByCard.

Federal law also requires you to pay any liability for the

employer share of social security tax and Medicare tax.

This share of social security tax and Medicare tax isn't

withheld from employees.

Online payment agreement. You may be eligible to

apply for an installment agreement online if you can't pay

the full amount of tax you owe when you file your return.

For more information, see What if you can't pay in full,

later.

If you have household employees working in your

private home on your farm operated for a profit, they aren't

considered to be farm employees. To report social

security tax, Medicare tax, Additional Medicare Tax, and

federal income tax withholding on the wages of household

employees, you may either:

Paid preparers. If you use a paid preparer to complete

Form 943, the paid preparer must complete and sign the

paid preparer's section of the form.

• File Schedule H (Form 1040) with your Form 1040 or

1040-SR, or

• Include the wages with your farm employees' wages on

Form 943.

Disregarded entities and qualified subchapter S subsidiaries (QSubs). Eligible single-owner disregarded

entities and QSubs are treated as separate entities for

employment tax purposes. Eligible single-member entities

Instructions for Form 943 (2021)

If you paid wages to other nonfarm workers, don't

report these on Form 943. Taxes on wages paid to

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nonfarm workers are reported on Form 941 or 941-SS,

Employer's QUARTERLY Federal Tax Return, or Form

944, Employer's ANNUAL Federal Tax Return. See Pub.

926 for more information about household employees.

File Form 943 only once for each calendar year. If you

filed Form 943 electronically, don't file a paper Form 943.

For more information about filing Form 943 electronically,

see Electronic filing and payment, earlier.

Who Must File Form 943?

If we receive Form 943 after the due date, we will treat

Form 943 as filed on time if the envelope containing Form

943 is properly addressed, contains sufficient postage,

and is postmarked by the U.S. Postal Service on or before

the due date, or sent by an IRS-designated private

delivery service (PDS) on or before the due date. If you

don't follow these guidelines, we will generally consider

Form 943 filed when it is actually received. For more

information about PDSs, see Where Should You File,

later.

File Form 943 if you paid wages to one or more

farmworkers and the wages were subject to federal

income tax withholding or social security and Medicare

taxes under the tests discussed next. For more

information on farmworkers and wages, see Pub. 51.

After you file your first Form 943, you must file a return

for each year, even if you have no taxes to report, until

you file a final return. You’re encouraged to file Form 943

electronically. Go to IRS.gov/EmploymentEfile for more

information on electronic filing.

Forms W-2 and W-3

By January 31, 2022, give Form W-2 to each employee

who was working for you at the end of 2021. If an

employee stops working for you before the end of the

year, give him or her Form W-2 any time after employment

ends but no later than January 31, 2022. If the employee

asks you for Form W-2, give him or her the completed

form within 30 days of the request or the last wage

payment, whichever is later.

The $150 Test or the $2,500 Test

All cash wages that you pay to farmworkers are subject to

federal income tax withholding and social security and

Medicare taxes for any calendar year for which you meet

either of the tests listed next.

• You pay an employee cash wages of $150 or more in a

year for farmwork (count all wages paid on a time,

piecework, or other basis). The $150 test applies

separately to each farmworker that you employ. If you

employ a family of workers, each member is treated

separately. Don't count wages paid by other employers.

• The total (cash and noncash) wages that you pay to all

farmworkers is $2,500 or more.

File Copy A of all Forms W-2 with Form W-3,

Transmittal of Wage and Tax Statements, with the Social

Security Administration (SSA) by January 31, 2022. For

electronic filing of Forms W-2, go to SSA.gov/employer.

You may be required to file Forms W-2 electronically. For

details, see the General Instructions for Forms W-2 and

W-3.

When Must You File?

Compensation paid to H-2A visa holders. Report

compensation of $600 or more paid to foreign agricultural

workers who entered the country on H-2A visas in box 1 of

Form W-2. Compensation paid to H-2A workers for

agricultural labor performed in connection with H-2A visas

isn't subject to social security and Medicare taxes and

therefore shouldn't be reported as wages subject to social

security tax (lines 2, 2a, and 2b), Medicare tax (line 4), or

Additional Medicare Tax withholding (line 6) on Form 943,

and shouldn't be reported as social security wages (box 3)

or Medicare wages (box 5) on Form W-2.

An employer isn't required to withhold federal income

tax from compensation paid to an H-2A worker for

agricultural labor performed in connection with this visa

unless the worker asks for withholding and the employer

agrees. In this case, the worker must give the employer a

completed Form W-4. Federal income tax withheld is

reported on Form 943, line 8, and in box 2 of Form W-2.

These reporting rules apply when the H-2A worker

provides his or her taxpayer identification number (TIN) to

the employer. For the rules relating to backup withholding

and reporting when the H-2A worker doesn't provide a

TIN, see the Instructions for Forms 1099-MISC and

1099-NEC and the Instructions for Form 945. For more

information on foreign agricultural workers on H-2A visas,

go to IRS.gov/H2A.

For 2021, file Form 943 by January 31, 2022. However, if

you made deposits on time in full payment of the taxes

due for the year, you may file the return by February 10,

2022.

Both paper and electronically filed Forms 1099-MISC,

Miscellaneous Information, and 1099-NEC, Nonemployee

Compensation, must be filed with the IRS by January 31,

If the $2,500-or-more test for the group isn't met, the

$150-or-more test for an individual still applies. Similarly, if

the $150-or-more test is not met for any individual, the

$2,500-or-more test for the group still applies.

Exceptions. Special rules apply to certain

hand-harvest laborers who receive less than $150 in

annual cash wages. For more information, see section 4

of Pub. 51.

Final Return

If you stop paying wages during the year and don't expect

to pay wages again, file a final return for 2021. Be sure to

mark the box above line 1 on the form indicating that you

don't have to file returns in the future. If you later restart

paying wages, then resume filing Form 943.

Attach a statement to your final return showing the

name of the person keeping the payroll records and the

address where these records will be kept. If the business

has been sold or transferred to another person, the

statement should include the name and address of such

person and the date on which the sale or transfer took

place. If no sale or transfer occurred, or you don't know

the name of the person to whom the business was sold or

transferred, that fact should be included in the statement.

Forms 1099-MISC and 1099-NEC

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Instructions for Form 943 (2021)

2022. Form 1099-MISC is used to report rents paid in your

farming business, and Form 1099-NEC is generally used

to report payments to an individual who isn't your

employee. Payments made to corporations for medical

and health care payments, including payments made to

veterinarians, must generally be reported on Form

1099-MISC. Compensation of $600 or more paid in a

calendar year to an H-2A visa agricultural worker who

didn't give you a valid TIN is also reported on Form

1099-MISC; you must withhold federal income tax from

these payments under the backup withholding rules. For

more information about filing Forms 1099-MISC and

1099-NEC, see the Instructions for Forms 1099-MISC and

1099-NEC.

and cents to the right of it. Don’t round entries to whole

dollars. Always show an amount for cents, even if it is

zero.

• Enter negative amounts using a minus sign (if possible).

Otherwise, use parentheses.

• Staple multiple sheets in the upper left corner when

filing.

Complete all 3 pages. You must complete all three

pages of Form 943 and sign on page 3. Failure to do so

may delay processing of your return.

Reconciliation of Form 943 to Forms W-2 and

W-3

Certain amounts reported on Form 943 for 2021 should

agree with the Form W-2 totals reported on the 2021 Form

W-3. The amounts from Form 943 that should agree with

the related boxes on Form W-3 are: federal income tax

withheld (line 8 and box 2), social security wages (lines 2,

2a, and 2b, and box 3), and Medicare wages (line 4 and

box 5). If the amounts don't agree, you may be contacted

by the IRS or the SSA. For more information, see section

11 of Pub. 51. Keep all records that show why the totals

don't match.

How Should You Complete Form 943?

Enter your EIN, name, and address in the spaces

provided. Don't use your social security number (SSN) or

individual taxpayer identification number (ITIN). Generally,

enter the business (legal) name you used when you

applied for your EIN. For example, if you're a sole

proprietor, enter “Barbara Smith” on the “Name” line and

“Barbara's Farm” on the “Trade name” line. Leave the

“Trade name” line blank if it is the same as your “Name.”

If you use a tax preparer to fill out Form 943, make sure

the preparer shows your business name exactly as it

appeared when you applied for your EIN.

If you don't have an EIN, you may apply for one online

by visiting IRS.gov/EIN. You may also apply for an EIN by

faxing or mailing Form SS-4 to the IRS. If the principal

business was created or organized outside of the United

States or U.S. territories, you may also apply for an EIN by

calling 267-941-1099 (toll call). If you have applied for an

EIN but don't have your EIN by the time a return is due, file

a paper return and write "Applied For" and the date you

applied in the space shown for the number.

Where Should You File?

You’re encouraged to file Form 943 electronically. Go to

IRS.gov/EmploymentEfile for more information on

electronic filing. If you file a paper return, where you file

depends on whether you include a payment with Form

943. Mail your return to the address listed for your location

in the table that follows.

PDSs can't deliver to P.O. boxes. You must use the

U.S. Postal Service to mail an item to a P.O. box address.

Go to IRS.gov/PDS for the current list of PDSs. For the

IRS mailing address to use if you’re using a PDS, go to

IRS.gov/PDSstreetAddresses. Select the mailing address

listed on the webpage that is in the same state as the

address to which you would mail returns filed without a

payment, as shown next.

Completing Form 943

Make entries on Form 943 as follows to enable accurate

processing.

• Don't enter dollar signs and decimal points. Commas

are optional. Enter dollars to the left of the preprinted line

Mailing Addresses for Form 943

If you’re in . . .

Without a payment . . .

With a payment . . .

Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana,

Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire,

New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode

Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia,

Wisconsin

Department of the Treasury

Internal Revenue Service

Kansas City, MO 64999-0008

Internal Revenue Service

P.O. Box 806533

Cincinnati, OH 45280-6533

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida,

Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi,

Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota,

Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming

Department of the Treasury

Internal Revenue Service

Ogden, UT 84201-0008

Internal Revenue Service

P.O. Box 932200

Louisville, KY 40293-2200

No legal residence or principal place of business in any state

Internal Revenue Service

P.O. Box 409101

Ogden, UT 84409

Internal Revenue Service

P.O. Box 932200

Louisville, KY 40293-2200

Instructions for Form 943 (2021)

-9-

Special filing address for exempt organizations; federal, state, and

local governmental entities; and Indian tribal governmental entities,

regardless of location

Department of the Treasury

Internal Revenue Service

Ogden, UT 84201-0008

Internal Revenue Service

P.O. Box 932200

Louisville, KY 40293-2200

credits. For more information, including an example, see

frequently asked question 17 at IRS.gov/ETD.

Your filing address may have changed from that

used to file your employment tax return in prior

CAUTION years. Don't send Form 943 or any payments to

the SSA.

!

Depositing Your Taxes

You must deposit all depository taxes

electronically by EFT. For more information, see

CAUTION Federal tax deposits must be made by electronic

funds transfer (EFT) under Reminders, earlier.

!

Must You Deposit Your Taxes?

You may have to deposit the federal income taxes you

withheld and both the employer and employee social

security taxes and Medicare taxes.

• If your total taxes after adjustments and

nonrefundable credits (line 13) are less than $2,500

for the year, you can pay the tax due with your return

if you file on time. You don't have to make a deposit. To

avoid a penalty, you must pay any amount due in full with

a timely filed return or you must deposit any amount you

owe by the due date of the return. For more information on

paying with a timely filed return, see the instructions for

line 15, later.

• If your total taxes after adjustments and

nonrefundable credits (line 13) are $2,500 or more

for the year. You must make deposits by EFT throughout

the year in accordance with your deposit schedule. There

are two deposit schedules—monthly or semiweekly—for

determining when you must deposit. Before the beginning

of each calendar year, you must determine which of the

two deposit schedules you must use. See section 7 of

Pub. 51 for information and rules concerning federal tax

deposits and to determine your status as a monthly or

semiweekly schedule depositor.

Note. If you're a monthly schedule depositor and

accumulate a $100,000 tax liability on any day during the

deposit period, you become a semiweekly schedule

depositor on the next day and remain so for at least the

rest of the calendar year and for the following calendar

year. If you become a semiweekly schedule depositor

under this rule solely as a result of the relief provided in

Notice 2021-65 regarding the early termination of the

employee retention credit for the fourth quarter of 2021,

you may be converted back to a monthly schedule

depositor by contacting the IRS. You may continue to

deposit in accordance with your status as a monthly

schedule depositor, but you may receive a

system-generated failure-to-deposit (FTD) penalty notice

after you file your Form 943 for 2022. Contact the IRS at

the toll-free number on your FTD penalty notice to request

abatement of the FTD penalty and to be converted back to

a monthly schedule depositor. Aside from this exception,

ordinary rules for determining deposit frequency will

continue to apply. The $100,000 tax liability threshold

requiring a next-day deposit is determined before you

consider any reduction of your liability for nonrefundable

Reducing your deposits for COVID-19 credits.

Employers eligible to claim the credit for qualified sick and

family leave wages, the employee retention credit, and/or

the COBRA premium assistance credit can reduce their

deposits by the amount of their anticipated credits. You

may reduce your deposits of federal employment taxes in

anticipation of the COBRA premium assistance credit with

regard to a period of coverage as of the date you are

entitled to the credit. Employers won’t be subject to an

FTD penalty for reducing their deposits if certain

conditions are met. See the instructions for line 12b,

line 12c, line 12d, and line 12e, later, for more information

on these credits. For more information on reducing

deposits, see Notice 2020-22, 2020-17 I.R.B. 664,

available at IRS.gov/irb/2020-17_IRB#NOT-2020-22; and

Notice 2021-24, 2021-18 I.R.B. 1122, available at

IRS.gov/irb/2021-18_IRB#NOT-2021-24. See the

instructions for line 17, later, for information on adjusting

tax liabilities reported on line 17 or Form 943-A for

nonrefundable credits.

Due to the termination of the employee retention credit

for the fourth quarter of 2021 for employers that aren't

recovery startup businesses, the IRS will no longer waive

FTD penalties for employers that reduce deposits in

anticipation of the employee retention credit after

December 20, 2021, unless the employer is a recovery

startup business. Some employers that are no longer

eligible to claim the employee retention credit for the

fourth quarter of 2021 may have already reduced their

employment tax deposits in anticipation of claiming the

employee retention credit for the fourth quarter of 2021.

For deposits due on or before December 20, 2021, with

respect to wages paid on or after October 1, 2021, an

employer that isn't a recovery startup business won't be

subject to an FTD penalty for the fourth quarter of 2021 if

the employer:

• Reduced its deposits in anticipation of the employee

retention credit, consistent with the rules provided by

section 3.b. of Notice 2021-24;

• Deposits the amounts initially retained in anticipation of

the employee retention credit on or before the due date of

the deposit for wages paid on December 31, 2021

(regardless of whether wages are actually paid on that

date); and

• Reports the tax liability associated with the termination

of the employer's employee retention credit on their 2021

Form 943, line 17, or, if a semiweekly schedule depositor,

on Form 943-A for the applicable day or days in

December.

Example. Reducing deposits for COBRA premium

assistance. Maple Co. has a semimonthly payroll period.

Sophie Rose elected COBRA premium assistance on

May 17, 2021. Maple Co. became entitled to a COBRA

premium assistance credit as of May 17, 2021, for the

premiums not paid by Sophie (an assistance eligible

individual) for the periods of coverage of April 1, 2021,

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Instructions for Form 943 (2021)

through April 30, 2021, and May 1, 2021, through May 31,

2021. Maple Co. could reduce its federal employment tax

deposits as of May 17, 2021, in anticipation of the credit to

which Maple Co. has become entitled.

What About Penalties and Interest?

Avoiding Penalties and Interest

You can avoid paying penalties and interest if you do all of

the following.

• Deposit or pay your taxes when they are due, unless

you meet the requirements discussed in Notice 2020-22

and Notice 2021-24. See Notice 2021-65 for modifications

to Notice 2021-24 under the Infrastructure Act.

• File your fully completed Form 943 on time.

• Report your tax liability accurately.

• Submit valid checks for tax payments.

• Furnish accurate Forms W-2 to employees.

• File Form W-3 and Copy A of Forms W-2 with the SSA

on time and accurately. Go to SSA.gov/employer for

information on how to file Forms W-2 electronically.

Penalties and interest are charged on taxes paid late

and returns filed late at a rate set by law. See sections 7

and 8 of Pub. 51 for details.

Use Form 843 to request abatement of assessed

penalties or interest. Don't request abatement of

assessed penalties or interest on Form 943 or Form

943-X.

If you receive a notice about a penalty after you file

your return, reply to the notice with an explanation and we

will determine if you meet reasonable-cause criteria. Don't

attach an explanation when you file your return.

If federal income, social security, and Medicare

taxes that must be withheld (that is, trust fund

CAUTION taxes) aren't withheld or aren't deposited or paid

to the United States Treasury, the trust fund recovery

penalty may apply. The penalty is 100% of the unpaid

trust fund tax. If these unpaid taxes can't be immediately

collected from the employer or business, the trust fund

recovery penalty may be imposed on all persons who are

determined by the IRS to be responsible for collecting,

accounting for, or paying over these taxes, and who acted

willfully in not doing so. For more information, see section

7 of Pub. 51. The trust fund recovery penalty won't apply

to any amount of trust fund taxes an employer holds back

in anticipation of any credits they are entitled to. It also

won't apply to applicable taxes deferred under section

2302 of the CARES Act or applicable taxes deferred

under Notice 2020-65 and Notice 2021-11 if paid by the

due date.

!

Specific Instructions

Line 1. Number of Agricultural

Employees

Enter the number of agricultural employees on your

payroll during the pay period that included March 12,

2021. Don't include household employees, persons who

received no pay during the pay period, pensioners, or

members of the Armed Forces.

Instructions for Form 943 (2021)

For purposes of these instructions, all references

TIP to “sick pay” mean ordinary sick pay, not “qualified

sick leave wages” that are reported on line 2a for

leave taken before April 1, 2021, or reported on line 2 for

leave taken after March 31, 2021, and before October 1,

2021.

Line 2. Wages Subject to Social

Security Tax

Enter the total cash wages, including qualified sick leave

wages and qualified family leave wages for leave taken

after March 31, 2021, and before October 1, 2021;

qualified wages (other than qualified health plan

expenses) for the employee retention credit; sick pay; and

taxable fringe benefits subject to social security tax that

you paid to your employees for farmwork during the

calendar year. Don’t include the qualified sick leave

wages reported on line 2a or the qualified family leave

wages reported on line 2b for leave taken before April 1,

2021. For this purpose, sick pay includes payments made

by an insurance company to your employees for which

you received timely notice from the insurance company.

Enter the amount before payroll deductions. Cash

wages include checks, money orders, etc. Don't include

the value of noncash items, such as food or lodging, or

pay for services other than farmwork. See section 3 of

Pub. 51 for information on cash and noncash wages. See

Purpose of Form 943, earlier, for household employee

information.

For 2021, the rate of social security tax on taxable

wages, except for qualified sick leave wages and qualified

family leave wages for leave taken before April 1, 2021, is

6.2% (0.062) each for the employer and employee or

12.4% (0.124) for both. Stop paying social security tax on

and entering an employee's wages on line 2 when the

employee's taxable wages, including qualified sick leave

wages reported on line 2a and qualified family leave

wages reported on line 2b, reach $142,800 for the year.

However, continue to withhold income and Medicare

taxes for the whole year on all wages, including qualified

sick leave wages and qualified family leave wages, even

when the social security wage base of $142,800 has been

reached. If you, as a qualifying employer, receive an

approved Form 4029, Application for Exemption From

Social Security and Medicare Taxes and Waiver of

Benefits, from one or more of your employees, enter

“Form 4029” on the dotted line next to the entry space.

For purposes of the credit for qualified sick and family

leave wages, qualified sick leave and family leave wages

are wages for social security and Medicare tax purposes,

determined without regard to the exclusions from the

definition of employment under sections 3121(b)(1)–(22),

that an employer pays that otherwise meet the

requirements of the EPSLA or the Expanded FMLA, as

enacted under the FFCRA and amended for purposes of

the ARP. However, don't include any wages otherwise

excluded under section 3121(b) when reporting qualified

sick and family leave wages on lines 2, 2a, 2b, 4, and, if

applicable, 6. See the instructions for line 12d for

information about the credit for qualified sick and family

leave wages for leave taken after March 31, 2021, and

before October 1, 2021.

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EPSLA. Employers with fewer than 500 employees and,

for leave taken after March 31, 2021, and before October

1, 2021, certain governmental employers without regard

to number of employees (except for the federal

government and its agencies and instrumentalities unless

described in section 501(c)(1)) are entitled to a credit if

they provide paid sick leave to employees that otherwise

meets the requirements of the EPSLA. Under the EPSLA,

as amended for purposes of the ARP, wages are qualified

sick leave wages if paid to employees that are unable to

work before October 1, 2021, because the employee:

1. Is subject to a federal, state, or local quarantine or

isolation order related to COVID-19;

2. Has been advised by a health care provider to

self-quarantine due to concerns related to COVID-19;

3. Is experiencing symptoms of COVID-19 and

seeking a medical diagnosis; or, for leave taken after

March 31, 2021, and before October 1, 2021, is seeking

or awaiting the results of a diagnostic test for, or a medical

diagnosis of, COVID-19 (and the employee has been

exposed to COVID-19 or the employee's employer has

requested such test or diagnosis), or the employee is

obtaining immunizations related to COVID-19 or

recovering from an injury, disability, illness, or condition

related to such immunization;

4. Is caring for an individual subject to an order

described in (1) or who has been advised as described in

(2);

5. Is caring for a son or daughter because the school

or place of care for that child has been closed, or the

childcare provider for that child is unavailable, due to

COVID-19 precautions; or

6. Is experiencing any other substantially similar

condition specified by the U.S. Department of Health and

Human Services, which for leave taken after March 31,

2021, and before October 1, 2021, includes to

accompany an individual to obtain immunization related to

COVID-19, or to care for an individual who is recovering

from any injury, disability, illness, or condition related to

the immunization.

Son or daughter. A son or daughter must generally

have been under 18 years of age or incapable of self-care

because of a mental or physical disability. A son or

daughter includes a biological child, adopted child,

stepchild, foster child, legal ward, or child for whom the

employee assumes parental status and carries out the

obligations of a parent.

Limits on qualified sick leave wages. The EPSLA,

as amended for purposes of the ARP, provides different

limitations for different circumstances under which

qualified sick leave wages are paid. For paid sick leave

qualifying under (1), (2), or (3) earlier, the amount of

qualified sick leave wages is determined at the

employee's regular rate of pay, but the wages may not

exceed $511 for any day (or portion of a day) for which the

individual is paid sick leave. For paid sick leave qualifying

under (4), (5), or (6) earlier, the amount of qualified sick

leave wages is determined at two-thirds the employee's

regular rate of pay, but the wages may not exceed $200

for any day (or portion of a day) for which the individual is

paid sick leave. The EPSLA also limits each individual to a

maximum of up to 80 hours of paid sick leave in total for

leave taken after March 31, 2020, and before April 1,

2021. The ARP resets this limit at 80 hours of paid sick

leave for leave taken after March 31, 2021, and before

October 1, 2021. Therefore, for leave taken after March

31, 2020, and before April 1, 2021, the maximum amount

of paid sick leave wages can’t exceed $5,110 for an

employee for leave under (1), (2), or (3), and it can’t

exceed $2,000 for an employee for leave under (4), (5), or

(6). These maximum amounts also reset and apply to

leave taken after March 31, 2021, and before October 1,

2021.

For more information about qualified sick and family

leave wages, go to IRS.gov/PLC.

Expanded FMLA. Employers with fewer than 500

employees and, for leave taken after March 31, 2021, and

before October 1, 2021, certain governmental employers

without regard to number of employees (except for the

federal government and its agencies and instrumentalities

unless described in section 501(c)(1)) are entitled to a

credit under the FFCRA, as amended for purposes of the

ARP, if they provide paid family leave to employees that

otherwise meets the requirements of the Expanded

FMLA. For leave taken before April 1, 2021, wages are

qualified family leave wages if paid to an employee who

has been employed for at least 30 calendar days when an

employee is unable to work due to the need to care for a

son or daughter under 18 years of age or incapable of

self-care because of a mental or physical disability

because the school or place of care for that child has

been closed, or the childcare provider for that child is

unavailable, due to a public health emergency. See Son

or daughter, earlier, for more information. For leave taken

after March 31, 2021, and before October 1, 2021, the

leave can be granted for any other reason provided by the

EPSLA, as amended for purposes of the ARP.

For leave taken before April 1, 2021, the first 10 days

for which an employee takes leave may be unpaid. During

this period, employees may use other forms of paid leave,

such as qualified sick leave, accrued sick leave, annual

leave, or other paid time off. After an employee takes

leave for 10 days, the employer must provide the

employee paid leave (that is, qualified family leave wages)

for up to 10 weeks. For leave taken after March 31, 2021,

and before October 1, 2021, the 10-day rule discussed

above doesn't apply and the paid leave can be provided

for up to 12 weeks.

Rate of pay and limit on wages. The rate of pay must

be at least two-thirds of the employee's regular rate of pay

(as determined under the Fair Labor Standards Act of

1938), multiplied by the number of hours the employee

would have otherwise been scheduled to work. For leave

taken after March 31, 2020, and before April 1, 2021, the

qualified family leave wages can't exceed $200 per day or

$10,000 in the aggregate per employee. For leave taken

after March 31, 2021, and before October 1, 2021, the

limit resets and the total qualified leave wages can't

exceed $200 per day or $12,000 in the aggregate per

employee.

For more information about qualified sick and family

leave wages, go to IRS.gov/PLC.

-12-

Instructions for Form 943 (2021)

Line 2a. Qualified Sick Leave Wages

Line 3. Social Security Tax

Enter the qualified taxable (subject to social security tax)

sick leave wages you paid to your employees during the

year for leave taken before April 1, 2021. Qualified sick

leave wages for leave taken before April 1, 2021, aren't

subject to the employer share of social security tax;

therefore, the tax rate on these wages is 6.2% (0.062).

Stop paying social security tax on and entering an

employee's wages on line 2a when the employee's

taxable wages, including wages reported on line 2,

qualified sick leave wages reported on line 2a, and

qualified family leave wages reported on line 2b, reach

$142,800 for the year. See the instructions for line 4 and

line 5 for reporting Medicare tax on qualified sick leave

wages, including the portion above the social security

wage base.

Multiply line 2 by 12.4% (0.124) and enter the result on

line 3.

Line 3a. Social Security Tax on

Qualified Sick Leave Wages

Multiply line 2a by 6.2% (0.062) and enter the result on

line 3a.

Line 3b. Social Security Tax on

Qualified Family Leave Wages

Multiply line 2b by 6.2% (0.062) and enter the result on

line 3b.

For purposes of the credit for qualified sick and family

leave wages, qualified sick leave wages are wages for

social security and Medicare tax purposes, determined

without regard to the exclusions from the definition of

employment under sections 3121(b)(1)–(22), that an

employer pays that otherwise meet the requirements of

the EPSLA, as enacted under the FFCRA and amended

by the COVID-related Tax Relief Act of 2020. However,

don't include any wages otherwise excluded under

section 3121(b) when reporting qualified sick leave wages

on lines 2a, 4, and, if applicable, 6. See the instructions for

line 12b for information about the credit for qualified sick

and family leave wages for leave taken before April 1,

2021.

Line 2b. Qualified Family Leave

Wages

Enter the qualified taxable (subject to social security tax)

family leave wages you paid to your employees during the

year for leave taken before April 1, 2021. Qualified family

leave wages for leave taken before April 1, 2021, aren't

subject to the employer share of social security tax;

therefore, the tax rate on these wages is 6.2% (0.062).

Stop paying social security tax on and entering an

employee's wages on line 2b when the employee's

taxable wages, including wages reported on line 2,

qualified sick leave wages reported on line 2a, and

qualified family leave wages reported on line 2b, reach

$142,800 for the year. See the instructions for line 4 and

line 5 for reporting Medicare tax on qualified family leave

wages, including the portion above the social security

wage base.

For purposes of the credit for qualified sick and family

leave wages, qualified family leave wages are wages for

social security and Medicare tax purposes, determined

without regard to the exclusions from the definition of

employment under sections 3121(b)(1)–(22), that an

employer pays that otherwise meet the requirements of

the Expanded FMLA, as enacted under the FFCRA and

amended by the COVID-related Tax Relief Act of 2020.

However, don't include any wages otherwise excluded

under section 3121(b) when reporting qualified family

leave wages on lines 2b, 4, and, if applicable, 6. See the

instructions for line 12b for information about the credit for

qualified sick and family leave wages for leave taken

before April 1, 2021.

Instructions for Form 943 (2021)

Line 4. Wages Subject to Medicare

Tax

Enter the total cash wages, including qualified sick leave

wages, qualified family leave wages, and qualified wages

(excluding qualified health plan expenses) for the

employee retention credit; sick pay; and taxable fringe

benefits that are subject to Medicare tax that you paid to

your employees for farmwork during the calendar year.

Enter the amount before deductions. Don't include the

value of noncash items, such as food or lodging, or pay

for services other than farmwork. Unlike social security

wages, there is no limit on the amount of wages subject to

Medicare tax. If you, as a qualifying employer, receive an

approved Form 4029 from one or more of your

employees, enter “Form 4029” on the dotted line next to

the entry space.

Line 5. Medicare Tax

Multiply line 4 by 2.9% (0.029) and enter the result on

line 5.

Line 6. Wages Subject to Additional

Medicare Tax Withholding

Enter all wages, including qualified sick leave wages,

qualified family leave wages, and qualified wages

(excluding qualified health plan expenses) for the

employee retention credit; sick pay; and taxable fringe

benefits that are subject to Additional Medicare Tax

withholding. You're required to begin withholding

Additional Medicare Tax in the pay period in which you

pay wages in excess of $200,000 to an employee and

continue to withhold it each pay period until the end of the

calendar year. Additional Medicare Tax is only imposed

on the employee. There is no employer share of

Additional Medicare Tax. All wages that are subject to

Medicare tax are subject to Additional Medicare Tax

withholding if paid in excess of the $200,000 withholding

threshold.

For more information on what wages are subject to

Medicare tax, see the chart, Special Rules for Various

Types of Services and Payments, in section 15 of Pub. 15.

For more information on Additional Medicare Tax, go to

IRS.gov/ADMT.

-13-

Line 7. Additional Medicare Tax

Withholding

Multiply line 6 by 0.9% (0.009) and enter the result on

line 7.

Line 8. Federal Income Tax Withheld

Enter the federal income tax that you withheld from your

employees on this year's wages, including qualified sick

leave wages, qualified family leave wages, and qualified

wages (excluding qualified health plan expenses) for the

employee retention credit. Generally, you must withhold

federal income tax from employees from whom you

withhold social security and Medicare taxes. See section

5 of Pub. 51 for more information on withholding rules.

Line 9. Total Taxes Before

Adjustments

Add the total social security tax (lines 3, 3a, and 3b),

Medicare tax (line 5), Additional Medicare Tax withholding

(line 7), and federal income tax withheld (line 8). Enter the

result on line 9.

Line 10. Current Year's Adjustments

Use line 10 to:

• Adjust for rounding of fractions of cents, or

• Adjust for the uncollected employee share of social

security and Medicare taxes on third-party sick pay or

group-term life insurance premiums paid for former

employees. See section 9 of Pub. 51.

Use a minus sign (if possible) to show an adjustment

that decreases the total taxes shown on line 9. Otherwise,

use parentheses.

Adjustment for fractions of cents. If there is a small

difference between total taxes after adjustments and

nonrefundable credits (line 13) and total deposits

(line 14a), it may be caused by rounding to the nearest

cent each time you figured payroll. This rounding occurs

when you figure the amount of social security and

Medicare taxes to be withheld from each employee's

wages. If the fractions of cents adjustment is the only

entry on line 10, enter “Fractions Only” on the dotted line

to the left of the entry space for line 10. This adjustment

may be a positive or a negative adjustment.

Adjustment for sick pay. If your third-party payer of sick

pay that isn't your agent (for example, an insurance

company) transfers the liability for the employer share of

the social security and Medicare taxes to you, enter a

negative adjustment on line 10 for the employee share of

social security and Medicare taxes that were withheld and

deposited by your third-party sick pay payer on the sick

pay. If you’re the third-party sick pay payer and you

transferred the liability for the employer share of the social

security and Medicare taxes to the employer, enter a

negative adjustment on line 10 for any employer share of

these taxes required to be paid by the employer. The sick

pay should be included on line 2, line 4, and, if the

withholding threshold is met, line 6.

No adjustment is reported on line 10 for sick pay that is

paid through a third party as an employer’s agent. An

employer’s agent bears no insurance risk and is

reimbursed on a cost-plus-fee basis for payment of sick

pay and similar amounts. If an employer uses an agent to

pay sick pay, the employer reports the wages on line 2,

line 4, and, if the withholding threshold is met, line 6,

unless the employer has an agency agreement with the

third-party payer that requires the third-party payer to do

the collecting, reporting, and/or paying or depositing

employment taxes on the sick pay. See section 6 of Pub.

15-A for more information about sick pay reporting.

Line 11. Total Taxes After

Adjustments

Combine lines 9 and 10; enter the result on line 11.

Line 12a. Qualified Small Business

Payroll Tax Credit for Increasing

Research Activities

Enter the amount of the credit from Form 8974, line 12.

If you enter an amount on line 12a, you must

attach Form 8974. The December 2017 revision

CAUTION of Form 8974 instructs you to enter the amount

from Form 8974, line 12, on Form 943, line 12. For 2021,

the amount from Form 8974, line 12, should be entered on

Form 943, line 12a.

!

Form 943 and these instructions use the terms

TIP “nonrefundable” and “refundable” when

discussing credits. The term “nonrefundable”

means the portion of the credit which is limited by law to

the amount of certain taxes. The term “refundable” means

the portion of the credit which is in excess of those taxes.

Line 12b. Nonrefundable Portion of

Credit for Qualified Sick and Family

Leave Wages for Leave Taken Before

April 1, 2021

Certain private employers with fewer than 500 employees

that provide paid sick leave under the EPSLA and/or

provide paid family leave under the Expanded FMLA are

eligible to claim the credit for qualified sick and family

leave wages for leave taken before April 1, 2021. For

purposes of this credit, qualified sick leave wages and

qualified family leave wages are wages for social security

and Medicare tax purposes, determined without regard to

the exclusions from the definition of employment under

section 3121(b)(1)–(22), that an employer pays that

otherwise meet the requirements of the EPSLA or

Expanded FMLA. Enter the nonrefundable portion of the

credit for qualified sick and family leave wages from

Worksheet 1, Step 2, line 2j. The credit for qualified sick

and family leave wages consists of the qualified sick leave

wages, the qualified family leave wages, the qualified

health plan expenses allocable to those wages, and the

employer share of Medicare tax allocable to those wages.

The nonrefundable portion of the credit is limited to the

employer share of social security tax reported on Form

943, line 3, after that share is first reduced by any credit

claimed on Form 8974 for the qualified small business

payroll tax credit for increasing research activities, any

credit to be claimed on Form 5884-C for the work

-14-

Instructions for Form 943 (2021)

opportunity credit for qualified tax-exempt organizations

hiring qualified veterans, and/or any credit to be claimed

on Form 5884-D for the disaster credit for qualified

tax-exempt organizations.

5884-D for the disaster credit for qualified tax-exempt

organizations, and/or any credit claimed for the

nonrefundable portion of the credit for qualified sick and

family leave wages for leave taken before April 1, 2021.

Any credit in excess of the remaining amount of the

employer share of social security tax is refundable and

reported on Form 943, line 14d. For more information on

the credit for qualified sick and family leave wages, go to

IRS.gov/PLC.

Any credit in excess of the remaining amount of the

employer share of social security tax is refundable and

reported on Form 943, line 14e. For more information on

the employee retention credit for qualified wages paid

after December 31, 2020, and before July 1, 2021, see

Notice 2021-23.

Qualified health plan expenses allocable to qualified

sick and family leave wages. The credit for qualified

sick leave wages and qualified family leave wages is

increased to cover the qualified health plan expenses that

are properly allocable to the qualified leave wages for

which the credit is allowed. These qualified health plan

expenses are amounts paid or incurred by the employer

to provide and maintain a group health plan but only to the

extent such amounts are excluded from the employees’

income as coverage under an accident or health plan. The

amount of qualified health plan expenses generally

includes both the portion of the cost paid by the employer

and the portion of the cost paid by the employee with

pre-tax salary reduction contributions. However, qualified

health plan expenses don’t include amounts that the

employee paid for with after-tax contributions. For more

information, go to IRS.gov/PLC.

You must include the full amount (both the

TIP nonrefundable and refundable portions) of the

credit for qualified sick and family leave wages in

your gross income for the tax year that includes the last

day of any calendar quarter in which a credit is allowed.

You can't use the same wages for the employee retention

credit and the credits for paid sick and family leave.

Line 12c. Nonrefundable Portion of

Employee Retention Credit

Certain government entities are entitled to the

TIP credit for 2021, including (1) federal

instrumentalities described in section 501(c)(1)

and exempt from tax under section 501(a); and (2) any

government, agency, or instrumentality that is a college or

university or the principal purpose or function of the entity

is providing medical or hospital care.

Instructions for Qualified Wages Paid After

December 31, 2020, and Before July 1, 2021

Enter the nonrefundable portion of the employee retention

credit from Worksheet 2, Step 2, line 2h. The employee

retention credit is 70% of the qualified wages you paid to

your employees after December 31, 2020, and before July

1, 2021. Qualified wages include qualified health plan

expenses for the employee retention credit. The

nonrefundable portion of the credit is limited to the

employer share of social security tax reported on Form

943, line 3, after that share is first reduced by any credit

claimed on Form 8974 for the qualified small business

payroll tax credit for increasing research activities, any

credit to be claimed on Form 5884-C for the work

opportunity credit for qualified tax-exempt organizations

hiring qualified veterans, any credit to be claimed on Form

Instructions for Form 943 (2021)

Qualified wages for the employee retention credit

paid after December 31, 2020, and before July 1,

2021. The tax credit is equal to 70% of qualified wages

paid to employees after December 31, 2020, and before

July 1, 2021. Qualified wages, including qualified health

plan expenses, are limited to a maximum of $10,000 for

each employee in each of the first quarter and the second

quarter of 2021 ($20,000 in total). Qualified wages are

wages for social security and Medicare tax purposes (for

government entities, determined without regard to section

3121(b)(5), (6), (7), (10), or (13), except for services

performed by an inmate at a penal institution) paid to

certain employees during any period in a quarter in which

your operations are fully or partially suspended due to a

governmental order or during a quarter in which your

gross receipts (within the meaning of section 448(c) or, if

you're a tax-exempt organization, section 6033) are less

than 80% of the gross receipts for the same calendar

quarter in calendar year 2019.

The wages and qualified health plan expenses

considered in calculating your credit depend on the size of

your workforce. Eligible employers that had an average

number of 500 or fewer full-time employees during 2019

count wages paid to all their employees and the qualified

health plan expenses paid or incurred for all employees

during any period in the first and second quarters of 2021,

in which business operations are fully or partially

suspended due to a governmental order or during a

quarter in which gross receipts are less than 80% of the

gross receipts for the same calendar quarter in calendar

year 2019. Eligible employers that had an average

number of more than 500 full-time employees in 2019 may

count only wages paid to employees for time that the

employees weren't providing services, and qualified

health plan expenses paid or incurred by the employer

allocable to the time those employees weren't providing

services, due to the suspension or decline in gross

receipts.

Qualified wages don't include wages for which the

employer receives a credit for qualified sick and family

leave wages and any wages taken into account in

determining the employee retention credit can't be taken

into account as wages for purposes of the credits under

sections 41, 45A, 45P, 45S, 51, and 1396. Employers can

receive both a Small Business Interruption Loan under the

PPP and the employee retention credit; however,

employers can't receive both loan forgiveness and a credit

for the same wages.

Qualified health plan expenses for the employee

retention credit. Qualified wages for the employee

retention credit include qualified health plan expenses.

Qualified health plan expenses are amounts paid or

-15-

incurred by the employer to provide and maintain a group

health plan but only to the extent such amounts are

excluded from the employees' income as coverage under

an accident or health plan. The amount of qualified health

plan expenses taken into account in determining the

amount of qualified wages generally includes both the

portion of the cost paid by the employer and the portion of

the cost paid by the employee with pre-tax salary

reduction contributions. However, the qualified health plan

expenses shouldn't include amounts that the employee

paid for with after-tax contributions. Generally, qualified

health plan expenses are those which are allocable to an

employee (and to a period) in which your business

operations are fully or partially suspended due to a

governmental order or experience a decline in gross

receipts. The allocation will be treated as proper if made

on the basis of being pro rata among periods of coverage.

If you complete Worksheet 2 because you paid

TIP qualified wages for the employee retention credit

after December 31, 2020, and before July 1,

2021, and you also complete Worksheet 4 because you

paid qualified wages for the employee retention credit

after June 30, 2021, and before January 1, 2022, you

must add the amounts from Worksheet 2, Step 2, line 2h,

and Worksheet 4, Step 2, line 2h, together and report the

total on Form 943, line 12c.

Instructions for Qualified Wages Paid After June

30, 2021, and Before January 1, 2022

The Infrastructure Act amends section 3134 of the

Internal Revenue Code, as enacted under the

CAUTION ARP, to limit the availability of the employee

retention credit in the fourth quarter of 2021 to employers

that are recovery startup businesses, as defined in section

3134(c)(5). Thus, for wages paid after September 30,

2021, and before January 1, 2022, only the wages paid by

recovery startup businesses can be qualified wages as

described in these instructions. See Recovery startup

business, later, for more information about a recovery

startup business.

!

Enter the nonrefundable portion of the employee retention

credit from Worksheet 4, Step 2, line 2h. The employee

retention credit is 70% of the qualified wages you paid to

your employees after June 30, 2021, and before January

1, 2022. Qualified wages include qualified health plan

expenses for the employee retention credit. The

nonrefundable portion of the credit is limited to the

employer share of Medicare tax reported on Form 943,

line 5, after that share is first reduced by any credit

claimed for the nonrefundable portion of the credit for

qualified sick and family leave wages for leave taken after

March 31, 2021. Any credit in excess of the remaining

amount of the employer share of Medicare tax is

refundable and reported on Form 943, line 14f. For more

information about the employee retention credit for

qualified wages paid after June 30, 2021, and before

January 1, 2022, see Notice 2021-49.

Qualified wages for the employee retention credit

paid after June 30, 2021, and before January 1, 2022.

The tax credit is equal to 70% of qualified wages paid to

employees after June 30, 2021, and before January 1,

2022. Qualified wages, including qualified health plan

expenses, are limited to a maximum of $10,000 for each

employee in each of the third quarter and the fourth

quarter of 2021 ($20,000 in total). Qualified wages are

wages for social security and Medicare tax purposes (for

government entities, determined without regard to section

3121(b)(5), (6), (7), (10), or (13), except for services

performed by an inmate at a penal institution) paid to

certain employees during any period in the third and fourth

quarters of 2021 in which your business operations are

fully or partially suspended due to a governmental order or

during a quarter in which your gross receipts (within the

meaning of section 448(c) or, if you're a tax-exempt

organization, section 6033) are less than 80% of the gross

receipts for the same calendar quarter in calendar year

2019; or wages paid by a recovery startup business. See

Recovery startup business, later, for more information

about a recovery startup business. A recovery startup

business must enter the total of any amounts included in

lines 12c and 14e on lines 28 and 29, as applicable, for

wages paid after June 30, 2021, and before January 1,

2022. The recovery startup business is limited to a

$50,000 employee retention credit in each of the third

quarter and the fourth quarter of 2021 ($100,000 in total

for the year). For more information, see the instructions for

line 28 and line 29, later.

Unless you're a severely financially distressed

employer, the wages and qualified health plan expenses

considered in calculating your credit depend on the size of

your workforce. Eligible employers that had an average

number of 500 or fewer full-time employees during 2019

count wages paid to all their employees and the qualified

health plan expenses paid or incurred for all employees

during any period in the third and fourth quarters of 2021

in which business operations are fully or partially

suspended due to a governmental order or during a

quarter in which gross receipts are less than 80% of the

gross receipts for the same calendar quarter in calendar

year 2019. Eligible employers that had an average

number of more than 500 full-time employees in 2019 may

count only wages paid to employees for time that the

employees weren't providing services, and qualified

health plan expenses paid or incurred by the employer

allocable to the time those employees weren't providing

services, due to the suspension or decline in gross

receipts.

Qualified wages under section 3134 for the employee

retention credit don't include wages taken into account for

credits under sections 41, 45A, 45P, 45S, 51, 1396, 3131

(qualified sick leave wages for leave taken after March 31,

2021, and before October 1, 2021), and 3132 (qualified

family leave wages for leave taken after March 31, 2021,

and before October 1, 2021). Qualified wages also don't

include wages that were used as payroll costs in

connection with a Shuttered Venue Operator Grant under

section 324 of the Economic Aid to Hard-Hit Small

Businesses, Nonprofits, and Venues Act; or a restaurant

revitalization grant under section 5003 of the ARP.

Employers can receive both a Small Business Interruption

Loan under the PPP and the employee retention credit;

however, employers can't receive both loan forgiveness

and a credit for the same wages.

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Instructions for Form 943 (2021)

Severely financially distressed employer. Severely

financially distressed employers are eligible employers

during the third quarter of 2021 whose gross receipts are

less than 10% of the gross receipts for the same calendar

quarter in calendar year 2019.

Recovery startup business. A recovery startup

business is an employer that:

• Began carrying on a trade or business after February

15, 2020;

• Had average annual gross receipts of $1 million or less

for the 3 tax years ending with the tax year before the

calendar quarter in which the employee retention credit is

claimed; and

• Only for credit claimed in the third quarter of 2021, isn't

otherwise eligible for the employee retention credit

because business operations weren’t fully or partially

suspended due to a governmental order or because gross

receipts (within the meaning of section 448(c) or, if you're

a tax-exempt organization, section 6033) weren’t less

than 80% of the gross receipts for the same calendar

quarter in calendar year 2019.

Line 12d. Nonrefundable Portion of

Credit for Qualified Sick and Family

Leave Wages for Leave Taken After

March 31, 2021, and Before October

1, 2021

Employers with fewer than 500 employees and certain

governmental employers without regard to number of

employees (except for the federal government and its

agencies and instrumentalities unless described in

section 501(c)(1)) are entitled to a credit if they provide

paid sick leave to employees that otherwise meets the

requirements of the EPSLA, as amended for purposes of

the ARP, and/or provide paid family leave to employees

that otherwise meets the requirements under the

Expanded FMLA, as amended for purposes of the ARP,

for qualified sick and family leave wages for leave taken

after March 31, 2021, and before October 1, 2021. For

purposes of this credit, qualified sick leave wages and

qualified family leave wages are wages for social security

and Medicare tax purposes, determined without regard to

the exclusions from the definition of employment under

sections 3121(b)(1)–(22), that an employer pays that

otherwise meet the requirements of the EPSLA or

Expanded FMLA, as enacted under the FFCRA and

amended for purposes of the ARP. Enter the

nonrefundable portion of the credit for qualified sick and

family leave wages from Worksheet 3, Step 2, line 2r.

The credit for qualified sick and family leave wages

consists of the:

• Qualified sick leave wages and/or qualified family leave

wages;

• Qualified health plan expenses allocable to qualified

sick leave and family leave wages;

• Collectively bargained defined benefit pension plan

contributions, subject to the qualified leave wage

limitations, allocable to the qualified sick and family leave

wages;

• Collectively bargained apprenticeship program

contributions, subject to the qualified leave wage

Instructions for Form 943 (2021)

limitations, allocable to the qualified sick and family leave

wages; and

• Employer share of social security and Medicare tax

allocable to the qualified sick and family leave wages.

The nonrefundable portion of the credit is limited to the

employer share of Medicare tax reported on Form 943,

line 5. You can't claim the credit if you provide the leave in

a manner that discriminates in favor of highly

compensated employees, full-time employees, or

employees on the basis of employment tenure when

making qualified sick and/or family leave available to

employees. See Highly compensated employee, later, for

the definition.

For qualified sick and family leave wages paid before

July 1, 2021, for leave taken after March 31, 2021, and

before July 1, 2021, the credit for qualified sick and family

leave wages is reduced by the amount of the credit

allowed under section 2301 of the CARES Act (for the

employee retention credit) or under section 41 (for the

credit for increasing research activities) with respect to

wages taken into account for determining both the credit

under section 2301 of the CARES Act or section 41 and

the credit for qualified sick and family leave wages; and

any wages taken into account in determining the credit for

qualified sick and family leave wages can't be taken into

account as wages for purposes of the credits under

sections 45A, 45P, 45S, and 51. For leave taken after

June 30, 2021, the credit for qualified sick and family

leave wages is reduced by the amount of the credit

allowed under section 41 (for the credit for increasing

research activities) with respect to wages taken into

account for determining the credit for qualified sick and

family leave wages; and any wages taken into account in

determining the credit for qualified sick and family leave

wages can't be taken into account as wages for purposes

of the credits under sections 45A, 45P, 45S, 51, and

3134. For leave taken after March 31, 2021, and before

October 1, 2021, qualified wages also don't include

wages that were used as payroll costs in connection with

a Shuttered Venue Operator Grant under section 324 of

the Economic Aid to Hard-Hit Small Businesses,

Nonprofits, and Venues Act; or a restaurant revitalization

grant under section 5003 of the ARP. Employers can

receive both a Small Business Interruption Loan under the

PPP and the credit for qualified sick and family leave

wages; however, employers can't receive both loan

forgiveness and a credit for the same wages. The same

wages can't be treated as both qualified sick leave wages

and qualified family leave wages.

Any credit in excess of the remaining amount of the

employer share of Medicare tax is refundable and

reported on Form 943, line 14f. For more information on

the credit for qualified sick and family leave wages, go to

IRS.gov/PLC.

Qualified health plan expenses allocable to qualified

sick leave and family leave wages. The credit for

qualified sick leave wages and qualified family leave

wages is increased to cover the qualified health plan

expenses that are properly allocable to the qualified leave

wages for which the credit is allowed. These qualified

health plan expenses are amounts paid or incurred by the

employer to provide and maintain a group health plan but

-17-

only to the extent such amounts are excluded from the

employees' income as coverage under an accident or

health plan. The amount of qualified health plan expenses

generally includes both the portion of the cost paid by the

employer and the portion of the cost paid by the employee

with pre-tax salary reduction contributions. However,

qualified health plan expenses don't include amounts that

the employee paid for with after-tax contributions. For

more information, go to IRS.gov/PLC.

Collectively bargained defined benefit pension plan

contributions. For purposes of qualified sick and family

leave wages, collectively bargained defined benefit

pension plan contributions are contributions during the

quarter for which you're claiming the credit that are:

• Paid or incurred by an employer on behalf of its

employees to a defined benefit plan, as defined in section

414(j), which meets the requirements of section 401(a);

• Made based on a pension contribution rate; and

• Required to be made under the terms of a collective

bargaining agreement in effect during the period for which

you're claiming the credit.

Pension contribution rate. The pension contribution

rate is the contribution rate that the employer is obligated

to pay under the terms of a collective bargaining

agreement to a defined benefit plan, as the rate is applied

to contribution base units, as defined by section 4001(a)

(11) of the Employee Retirement Income Security Act of

1974 (ERISA).

Allocation rules. The amount of collectively bargained

defined benefit pension plan contributions allocated to

qualified sick leave wages and/or qualified family leave

wages during the quarter for which you're claiming the

credit is the pension contribution rate (expressed as an

hourly rate) multiplied by the number of hours qualified

sick leave wages and/or qualified family leave wages

were provided to employees covered under the collective

bargaining agreement during the quarter for which you're

claiming the credit.

Collectively bargained apprenticeship program contributions. For purposes of qualified sick and family

leave wages, collectively bargained apprenticeship

program contributions are contributions during the quarter

for which you're claiming the credit that are:

• Paid or incurred by an employer on behalf of its

employees to a registered apprenticeship program, which

is an apprenticeship registered under the National

Apprenticeship Act of August 16, 1937, and meets the

standards of Federal Regulations under subpart A of Part

29 and Part 30 of title 29;

• Made based on an apprenticeship program contribution

rate; and

• Required to be made under the terms of a collective

bargaining agreement in effect during the quarter for

which you're claiming the credit.

Apprenticeship program contribution rate. The

apprenticeship program contribution rate is the

contribution rate that the employer is obligated to pay

under the terms of a collective bargaining agreement for

benefits under a registered apprenticeship program, as

the rate is applied to contribution base units, as defined by

section 4001(a)(11) of ERISA.

Allocation rules. The amount of collectively bargained

apprenticeship program contributions allocated to

qualified sick leave wages and/or qualified family leave

wages during the quarter for which you're claiming the

credit is the apprenticeship program contribution rate

(expressed as an hourly rate) multiplied by the number of

hours qualified sick leave wages and/or qualified family

leave wages were provided to employees covered under

the collective bargaining agreement during the quarter for

which you're claiming the credit.

Highly compensated employee. A highly compensated

employee is an employee who meets either of the

following tests.

1. The employee was a 5% owner at any time during

the year or the preceding year.

2. The employee received more than $130,000 in pay

for the preceding year.

You can choose to ignore test (2) if the employee

wasn't also in the top 20% of employees when ranked by

pay for the preceding year.

Line 12e. Nonrefundable Portion of

COBRA Premium Assistance Credit

Enter the COBRA premium assistance that you provided

for periods of coverage beginning on or after April 1, 2021,

through periods of coverage beginning on or before

September 30, 2021. You can claim the credit for a period

of coverage once the individual elects COBRA

continuation coverage, and for any period of coverage

beginning after the election, as of the beginning of such

period of coverage for which the individual doesn't pay the

premiums for the coverage. Don't include any amount that

was included as qualified wages for the employee

retention credit or included as qualified health plan

expenses allocable to qualified sick leave and family leave

wages. Enter the nonrefundable portion of the COBRA

premium assistance credit from Worksheet 5, Step 2,

line 2g. See COBRA background next for more

information about COBRA.

COBRA background. The Consolidated Omnibus

Budget Reconciliation Act of 1985 (COBRA) provides

certain former employees, retirees, spouses, former

spouses, and dependent children the right to temporary

continuation of health coverage at group rates. COBRA

generally covers multiemployer health plans and health

plans maintained by private-sector employers (other than

churches) with 20 or more full- and part-time employees.

Parallel requirements apply to these plans under ERISA.

Under the Public Health Service Act, COBRA

requirements also apply to health plans covering state or

local government employees. Similar requirements apply

under some state laws.

Line 12f. Number of Individuals

Provided COBRA Premium

Assistance

Enter the number of individuals provided COBRA

premium assistance for periods of coverage beginning on

or after April 1, 2021, through periods of coverage

beginning on or before September 30, 2021. Count each

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Instructions for Form 943 (2021)

after June 30, 2021, and before January 1, 2022, you

must add the amounts from Worksheet 2, Step 2, line 2i,

and Worksheet 4, Step 2, line 2i, together and report the

total on Form 943, line 14e.

assistance eligible individual that received assistance as

one individual, whether or not the COBRA coverage was

for insurance that covered more than one assistance

eligible individual. For example, if the coverage was for a

former employee, spouse, and two children, you would

include one individual on line 12f. Further, each individual

is reported only once per year. For example, an

assistance eligible individual that received assistance

monthly is only reported as one individual.

Line 12g. Total Nonrefundable Credits

Add lines 12a, 12b, 12c, 12d, and 12e. Enter the total on

line 12g.

Line 13. Total Taxes After

Adjustments and Nonrefundable

Credits

Subtract line 12g from line 11 and enter the result on

line 13. The amount entered on line 13 can't be less than

zero.

Line 14a. Total Deposits

Enter your deposits for this year, including any

overpayment that you applied from filing Form 943-X, in

the current year. Also include in the amount shown any

overpayment from a previous period that you applied to

this return. Don’t include any amount you didn’t deposit

because you reduced your deposits in anticipation of the

credit for qualified sick and family leave wages, the

employee retention credit, and/or the COBRA premium

assistance credit, as discussed in Notice 2020-22 and

Notice 2021-24.

Line 14d. Refundable Portion of

Credit for Qualified Sick and Family

Leave Wages for Leave Taken Before

April 1, 2021

Certain private employers with fewer than 500 employees

that provide paid sick leave under the EPSLA and/or

provide paid family leave under the Expanded FMLA are

eligible to claim the credit for qualified sick and family

leave wages. Enter the refundable portion of the credit for

qualified sick and family leave wages from Worksheet 1,

Step 2, line 2k. The credit for qualified sick and family

leave wages consists of the qualified sick leave wages,

the qualified family leave wages, the qualified health plan

expenses allocable to those wages, and the employer

share of Medicare tax allocable to those wages. The

refundable portion of the credit is allowed after the

employer share of social security tax is reduced to zero by

nonrefundable credits that are applied against the

employer share of social security tax.

Line 14e. Refundable Portion of

Employee Retention Credit

If you complete Worksheet 2 because you paid

TIP qualified wages for the employee retention credit

after December 31, 2020, and before July 1,

2021, and you also complete Worksheet 4 because you

paid qualified wages for the employee retention credit

Instructions for Form 943 (2021)

Credit for qualified wages paid after December 31,

2020, and before July 1, 2021. Enter the refundable

portion of the employee retention credit from Worksheet 2,

Step 2, line 2i. The employee retention credit is 70% of the

Qualified wages for the employee retention credit paid

after December 31, 2020, and before July 1, 2021. The

refundable portion of the credit is allowed after the

employer share of social security tax is reduced to zero by

nonrefundable credits that are applied against the

employer share of social security tax.

The Infrastructure Act amends section 3134 of the

Internal Revenue Code, as enacted under the

CAUTION ARP, to limit the availability of the employee

retention credit in the fourth quarter of 2021 to employers

that are recovery startup businesses, as defined in section

3134(c)(5). Thus, for wages paid after September 30,

2021, and before January 1, 2022, only the wages paid by

recovery startup businesses can be qualified wages as

described in these instructions. See Recovery startup

business, earlier, for more information about a recovery

startup business.

!

Credit for qualified wages paid after June 30, 2021,

and before January 1, 2022. Enter the refundable

portion of the employee retention credit from Worksheet 4,

Step 2, line 2i. The employee retention credit is 70% of the

qualified wages for the employee retention credit paid

after June 30, 2021, and before January 1, 2022. The

refundable portion of the credit is allowed after the

employer share of Medicare tax is reduced to zero by

nonrefundable credits that are applied against the

employer share of Medicare tax.

Line 14f. Refundable Portion of Credit

for Qualified Sick and Family Leave

Wages for Leave Taken After March

31, 2021, and Before October 1, 2021

Employers with fewer than 500 employees and certain

governmental employers without regard to number of

employees (except for the federal government and its

agencies and instrumentalities unless described in

section 501(c)(1)) are entitled to a credit if they provide

paid sick leave to employees that otherwise meets the

requirements of the EPSLA, as amended for purposes of

the ARP, and/or provide paid family leave to employees

that otherwise meets the requirements under the

Expanded FMLA, as amended for purposes of the ARP,

for leave taken after March 31, 2021, and before October

1, 2021. Enter the refundable portion of the credit for

qualified sick and family leave wages from Worksheet 3,

Step 2, line 2s. The refundable portion of the credit is

allowed after the employer share of Medicare tax is

reduced to zero by nonrefundable credits that are applied

against the employer share of Medicare tax.

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Line 14g. Refundable Portion of

COBRA Premium Assistance Credit

Enter the refundable portion of the COBRA premium

assistance credit from Worksheet 5, Step 2, line 2h. The

refundable portion of the credit is allowed after the

employer share of Medicare tax is reduced to zero by

nonrefundable credits that are applied against the

employer share of Medicare tax.

Line 14h. Total Deposits and

Refundable Credits

Add lines 14a, 14d, 14e, 14f, and 14g. Enter the total on

line 14h.

Line 14i. Total Advances Received

From Filing Form(s) 7200 for the Year

Enter the total advances received from filing Form(s) 7200

for the year. If you filed a Form 7200 but you haven’t

received the advance before filing Form 943, don’t include

that amount. Employers were eligible to file Form 7200 if

they paid qualified sick leave wages, qualified family leave

wages, or qualified wages for the employee retention

credit, and/or provided COBRA premium assistance and

the amount of employment tax deposits they retained

wasn’t sufficient to cover their anticipated credits. Include

on line 14i any advance payment of the employee

retention credit that you received for the fourth quarter of

2021 even if you're no longer eligible for the employee

retention credit because you're not a recovery startup

business. See Advance payment of COVID-19 credits

extended, earlier, for more information.

Form 7200 may be filed up to the earlier of

TIP January 31, 2022, or the filing of Form 943 for the

year. However, if you file Form 7200 after the end

of the year, it's possible that it may not be processed prior

to the processing of the filed Form 943. Advance payment

requests on Form 7200 won't be paid after your Form 943

is processed. When the IRS processes Form 943, we will

correct the amount reported on line 14i to match the

amount of advance payments issued or contact you to

reconcile the difference before we finish processing Form

943.

Line 14j. Total Deposits and

Refundable Credits Less Advances

Subtract line 14i from line 14h. Enter the result on line 14j.

Line 15. Balance Due

If line 13 is more than line 14j, enter the difference on

line 15. Otherwise, see Line 16. Overpayment, later.

Never make an entry on both lines 15 and 16.

You don't have to pay if line 15 is under $1. Generally,

you should have a balance due only if your total taxes

after adjustments and nonrefundable credits (line 13) are

less than $2,500. However, see section 7 of Pub. 51

regarding payments made under the accuracy of deposits

rule.

If you were required to make federal tax deposits, pay

the amount shown on line 15 by EFT. If you weren't

required to make federal tax deposits or you're a monthly

schedule depositor making a payment under the accuracy

of deposits rule (see section 7 of Pub. 51), you may pay

the amount shown on line 15 by EFT, credit card, debit

card, check, money order, or EFW. For more information

on electronic payment options, go to IRS.gov/Payments.

If you pay by EFT, credit card, or debit card, file your

return using the Without a payment address under Where

Should You File, earlier. Don't file Form 943-V, Payment

Voucher.

If you pay by check or money order, make it payable to

“United States Treasury.” Enter your EIN, “Form 943,” and

the tax period on your check or money order. Complete

Form 943-V and enclose it with Form 943.

If you're required to make deposits and instead

pay the taxes with Form 943, you may be subject

CAUTION to a penalty.

!

What if you can't pay in full? If you can't pay the full

amount of tax you owe, you can apply for an installment

agreement online. You can apply for an installment

agreement online if:

• You can't pay the full amount shown on line 15,

• The total amount you owe is $25,000 or less, and

• You can pay the liability in full in 24 months.

To apply using the Online Payment Agreement

Application, go to IRS.gov/OPA.

Under an installment agreement, you can pay what you

owe in monthly installments. There are certain conditions

you must meet to enter into and maintain an installment

agreement, such as paying the liability within 24 months,

and making all required deposits and timely filing tax

returns during the length of the agreement.

If your installment agreement is accepted, you will be

charged a fee and you will be subject to penalties and

interest on the amount of tax not paid by the due date of

the return.

Line 16. Overpayment

If line 14j is more than line 13, enter the difference on

line 16. Never make an entry on both lines 15 and 16.

If you deposited more than the correct amount for the

year, you can choose to have the IRS either refund the

overpayment or apply it to your next return. Check only

one box on line 16. If you don't check either box or if you

check both boxes, we will generally apply the

overpayment to your next return. Regardless of any box

you check or don't check on line 16, we may apply your

overpayment to any past due tax account that is shown in

our records under your EIN.

If line 16 is less than $1, we will send you a refund or

apply it to your next return only if you ask us in writing to

do so.

Line 17. Monthly Summary of Federal

Tax Liability

This is a summary of your monthly tax liability, not a

summary of deposits made. If line 13 is less than $2,500,

don't complete line 17 or Form 943-A.

-20-

Instructions for Form 943 (2021)

Complete line 17 only if you were a monthly schedule

depositor for the entire year and line 13 is $2,500 or

more. The amount entered on line 17M must equal the

amount reported on line 13. If it doesn't, your tax deposits

and payments may not be counted as timely. Don't reduce

your total liability reported on line 17 by the refundable

portion of the credit for qualified sick and family leave

wages, the refundable portion of the employee retention

credit, or the refundable portion of the COBRA premium

assistance credit. Don't change your current year tax

liability reported on line 13 by adjustments reported on

any Forms 943-X. See section 7 of Pub. 51 for details on

the deposit rules. You're a monthly schedule depositor for

the calendar year if the amount of your “Total taxes after

adjustments and credits” reported for the lookback period

isn't more than $50,000. The lookback period is the

second calendar year preceding the current calendar

year. For example, the lookback period for 2022 is 2020.

If you were a semiweekly schedule depositor

during any part of the year, don't complete line 17.

CAUTION Instead, complete Form 943-A.

!

Reporting adjustments from line 10 on line 17. If your

net adjustment during a month is negative and it exceeds

your total liability for the month, don't enter a negative

amount for the month. Instead, enter “-0-” for the month

and carry over the unused portion of the adjustment to the

next month.

Adjusting tax liability for nonrefundable credits

claimed on lines 12a, 12b, 12c, 12d, and 12e. Monthly

schedule depositors and semiweekly schedule depositors

must account for nonrefundable credits claimed on lines

12a, 12b, 12c, 12d, and 12e when reporting their tax

liabilities on line 17 or Form 943-A. The total tax liability for

the year must equal the amount reported on line 13.

Failure to account for nonrefundable credits on line 17 or

Form 943-A may cause line 17 or Form 943-A to report

more than the total tax liability reported on line 13. Don't

reduce your monthly tax liability reported on lines 17a

through 17l or your daily tax liability reported on Form

943-A below zero.

Qualified small business payroll tax credit for

increasing research activities (line 12a). The qualified

small business payroll tax credit for increasing research

activities is limited to the employer share of social security

tax on wages paid during the quarter that begins after the

income tax return electing the credit has been filed. In

completing line 17 or Form 943-A, you take into account

the payroll tax credit against your liability for the employer

share of social security tax starting with the first payroll

payment of the quarter that includes payments of wages

to your employees subject to social security tax. The

credit may be taken to the extent of the employer share of

social security tax on wages associated with the first

payroll payment, and then to the extent of the employer

share of social security tax associated with succeeding

payroll payments in the quarter until the credit is used.

Consistent with the entries on line 17 or Form 943-A, the

payroll tax credit should be taken into account in making

deposits of employment tax. If any payroll tax credit is

remaining at the end of the quarter that hasn’t been used

completely because it exceeds the employer share of

Instructions for Form 943 (2021)

social security tax for the quarter, the excess credit may

be carried forward to the succeeding quarter and allowed

as a payroll tax credit for the succeeding quarter. The

payroll tax credit may not be taken as a credit against

income tax withholding, Medicare tax, or the employee

share of social security tax.

Also, the remaining payroll tax credit may not be

carried back and taken as a credit against wages paid

from preceding quarters that are reported on the same

Form 943 or on Forms 943 for preceding years. If an

amount of payroll tax credit is unused at the end of the

calendar year because it is in excess of the employer

share of social security tax on wages paid during the

applicable quarters in the calendar year, the remaining

payroll tax credit may be carried forward to the first

quarter of the succeeding calendar year as a payroll tax

credit against the employer share of social security tax on

wages paid in that quarter.

Example. Rose Co. is an employer with a calendar tax

year that filed its timely income tax return on April 15,

2021. Rose Co. elected to take the qualified small

business payroll tax credit for increasing research

activities on Form 6765. The third quarter of 2021 is the

first quarter that begins after Rose Co. filed the income tax

return making the payroll tax credit election. Therefore,

the payroll tax credit applies against Rose Co.’s share of

social security tax on wages paid to employees in the third

quarter of 2021. Rose Co. is a semiweekly schedule

depositor. Rose Co. completes Form 943-A by reducing

the amount of liability entered for the first payroll payment

in the third quarter of 2021 that includes wages subject to

social security tax by the lesser of (1) its share of social

security tax on the wages, or (2) the available payroll tax

credit. If the payroll tax credit elected is more than Rose

Co.’s share of social security tax on the first payroll

payment of the quarter, the excess payroll tax credit

would be carried forward to succeeding payroll payments

in the third quarter until it is used. If the amount of the

payroll tax credit exceeds Rose Co.’s share of social

security tax on wages paid to its employees in the third

quarter, the excess credit would be treated as a payroll

tax credit against its share of social security tax on wages

paid in the fourth quarter. If the amount of the payroll tax

credit remaining exceeded Rose Co.’s share of social

security tax on wages paid in the fourth quarter, it could be

carried forward and treated as a payroll tax credit for the

first quarter of 2022.

Nonrefundable portion of credit for qualified sick

and family leave wages for leave taken before April

1, 2021 (line 12b). The nonrefundable portion of the

credit for qualified sick and family leave wages for leave

taken before April 1, 2021, is limited to the employer share

of social security tax on wages paid during the year that is

remaining after that share is first reduced by any credit

claimed on Form 943, line 12a, for the qualified small

business payroll tax credit for increasing research

activities; any credit to be claimed on Form 5884-C,

line 11, for the work opportunity credit for qualified

tax-exempt organizations hiring qualified veterans; and/or

any credit to be claimed on Form 5884-D for the disaster

credit for qualified tax-exempt organizations. In

completing line 17 or Form 943-A, you take into account

the nonrefundable portion of the credit for qualified sick

-21-

and family leave wages against the liability for the first

payroll payment of the year, but not below zero. Then

reduce the liability for each successive payroll payment of

the year until the nonrefundable portion of the credit is

used. Any credit for qualified sick and family leave wages

for leave taken before April 1, 2021, that is remaining at

the end of the year because it exceeds the employer

share of social security tax is claimed on line 14d as a

refundable credit. The refundable portion of the credit

doesn’t reduce the liability reported on line 17 or Form

943-A.

Example. Maple Co. is a monthly schedule depositor

that pays employees every Friday. In 2021, Maple Co.

had pay dates every Friday of 2021 starting January 1,

2021. Maple Co. paid qualified sick and family leave

wages on March 12 and March 19. The nonrefundable

portion of the credit for qualified sick and family leave

wages for the year is $1,000. On line 17, Maple Co. will

use the $1,000 to reduce the liability for the January 1 pay

date, but not below zero. If any nonrefundable portion of

the credit remains, Maple Co. applies it to the liability for

the January 8 pay date, then the January 15 pay date, and

so forth until the entire $1,000 is used.

Nonrefundable portion of employee retention

credit for wages paid after December 31, 2020, and

before July 1, 2021 (line 12c). The nonrefundable

portion of the employee retention credit is limited to the

employer share of social security tax on wages paid

during the year that is remaining after that share is first

reduced by any credit claimed on Form 943, line 12a, for

the qualified small business payroll tax credit for

increasing research activities; any credit to be claimed on

Form 5884-C, line 11, for the work opportunity credit for

qualified tax-exempt organizations hiring qualified

veterans; any credit to be claimed on Form 5884-D for the

disaster credit for qualified tax-exempt organizations;

and/or any credit claimed on Form 943, line 12b, for the

nonrefundable portion of the credit for qualified sick and

family leave wages for leave taken before April 1, 2021. In

completing line 17 or Form 943-A, you take into account

the nonrefundable portion of the employee retention credit

against the liability for the first payroll payment of the year,

but not below zero. Then reduce the liability for each

successive payroll payment in the year until the

nonrefundable portion of the credit is used. Any employee

retention credit that is remaining at the end of the year

because it exceeds the employer share of social security

tax is claimed on Form 943, line 14e, as a refundable

credit. The refundable portion of the credit doesn’t reduce

the liability reported on line 17 or Form 943-A.

Example. Maple Co. is a monthly schedule depositor

that pays employees every Friday. In 2021, Maple Co.

had pay dates every Friday of 2021 starting January 1,

2021. Maple Co. paid qualified wages for the employee

retention credit on May 7 and May 14. The nonrefundable

portion of the employee retention credit for the year is

$1,000. On line 17, Maple Co. will use the $1,000 to

reduce the liability for the January 1 pay date, but not

below zero. If any nonrefundable portion of the credit

remains, Maple Co. applies it to the liability for the

January 8 pay date, then the January 15 pay date, and so

forth until the entire $1,000 is used.

The Infrastructure Act amends section 3134 of the

Internal Revenue Code, as enacted under the

CAUTION ARP, to limit the availability of the employee

retention credit in the fourth quarter of 2021 to employers

that are recovery startup businesses, as defined in section

3134(c)(5). Thus, for wages paid after September 30,

2021, and before January 1, 2022, only the wages paid by

recovery startup businesses can be qualified wages as

described in these instructions. See Recovery startup

business, earlier, for more information about a recovery

startup business.

!

If you're no longer eligible to claim the employee retention

credit for the fourth quarter of 2021, but you already

reduced your employment tax deposits in anticipation of

claiming the employee retention credit for the fourth

quarter of 2021, you must deposit the amounts initially

retained in anticipation of the employee retention credit on

or before the due date of the deposit for wages paid on

December 31, 2021 (regardless of whether wages are

actually paid on that date), based on how you choose to

report the tax liability resulting from the termination of the

employee retention credit on Form 943-A or, if a monthly

depositor, of Form 943, line 17. In order to obtain the relief

under Notice 2021-65 and avoid an FTD penalty,

employers must deposit the amounts in accordance with

the due date or dates of the applicable day or days the tax

liabilities resulting from the termination of the employee

retention credit are reported on Form 943-A or Form 943,

line 17, as applicable. However, this relief doesn't apply to

deposit payments that were untimely due to any

circumstance other than the change in eligibility for the

employee retention credit or to employers who reduced

deposits after December 20, 2021. See Notice 2021-65

for more information.

Nonrefundable portion of employee retention

credit for wages paid after June 30, 2021, and before

January 1, 2022 (line 12c). The nonrefundable portion

of the employee retention credit is limited to the employer

share of Medicare tax on wages paid during the year that

is remaining after that share is first reduced by any credit

claimed on Form 943, line 12d, for the nonrefundable

portion of the credit for qualified sick and family leave

wages for leave taken after March 31, 2021. In completing

line 17 or Form 943-A, you take into account the

nonrefundable portion of the employee retention credit

against the liability for the first payroll payment of the year,

but not below zero. Then reduce the liability for each

successive payroll payment of the year until the

nonrefundable portion of the credit is used. Any employee

retention credit that is remaining at the end of the year

because it exceeds the employer share of Medicare tax is

claimed on line 14e as a refundable credit. The refundable

portion of the credit doesn't reduce the liability reported on

line 17 or Form 943-A.

Nonrefundable portion of credit for qualified sick

and family leave wages for leave taken after March

31, 2021, and before October 1, 2021 (line 12d). The

nonrefundable portion of the credit for qualified sick and

family leave wages for leave taken after March 31, 2021,

and before October 1, 2021, is limited to the employer

share of Medicare tax on wages paid during the year. In

completing line 17 or Form 943-A, you take into account

-22-

Instructions for Form 943 (2021)

the nonrefundable portion of the credit for qualified sick

and family leave wages against the liability for the first

payroll payment of the year, but not below zero. Then

reduce the liability for each successive payroll payment of

the year until the nonrefundable portion of the credit is

used. Any credit for qualified sick and family leave wages

for leave taken after March 31, 2021, and before October

1, 2021, that is remaining at the end of the year because it

exceeds the employer share of Medicare tax is claimed on

line 14f as a refundable credit. The refundable portion of

the credit doesn't reduce the liability reported on line 17 or

Form 943-A.

Nonrefundable portion of COBRA premium

assistance credit (line 12e). The nonrefundable portion

of the COBRA premium assistance credit is limited to the

employer share of Medicare tax on wages paid during the

year that is remaining after that share is first reduced by

any credit claimed on Form 943, line 12d, for the

nonrefundable portion of the credit for qualified sick and

family leave wages for leave taken after March 31, 2021;

and/or any credit claimed on Form 943, line 12c, for the

nonrefundable portion of the employee retention credit for

wages paid after June 30, 2021, and before January 1,

2022. In completing line 17 or Form 943-A, you take into

account the nonrefundable portion of the COBRA

premium assistance credit against the liability for the first

payroll payment but not below zero. Then reduce the

liability for each successive payroll payment of the year

until the nonrefundable portion of the credit is used. Any

COBRA premium assistance credit that is remaining at the

end of the year because it exceeds the employer share of

Medicare tax is claimed on line 14g as a refundable credit.

The refundable portion of the credit doesn't reduce the

liability reported on line 17 or Form 943-A.

You may reduce your deposits by the amount of

TIP the nonrefundable and refundable portions of the

credit for qualified sick and family leave wages,

the nonrefundable and refundable portions of the

employee retention credit, and the nonrefundable and

refundable portions of the COBRA premium assistance

credit, as discussed earlier under Reducing your deposit

for COVID-19 credits.

Lines 18 Through 29

The amounts entered on lines 18 through 27 are

TIP amounts that you use on the worksheets at the

end of these instructions to figure certain credits.

If you're claiming these credits, you must enter the

applicable amounts. Lines 28 and 29 apply only if you're

eligible for the employee retention credit in the third or

fourth quarter of 2021 solely because your business is a

recovery startup business.

Line 18. Qualified Health Plan Expenses

Allocable to Qualified Sick Leave Wages for

Leave Taken Before April 1, 2021

Enter the qualified health plan expenses allocable to

qualified sick leave wages for leave taken before April 1,

2021. This amount is also entered on Worksheet 1, Step

2, line 2b.

Instructions for Form 943 (2021)

Line 19. Qualified Health Plan Expenses

Allocable to Qualified Family Leave Wages for

Leave Taken Before April 1, 2021

Enter the qualified health plan expenses allocable to

qualified family leave wages for leave taken before April 1,

2021. This amount is also entered on Worksheet 1, Step

2, line 2f.

The total amount reported on lines 20 and 21,

discussed next, can't exceed $10,000 per

CAUTION employee, each quarter.

!

Line 20. Qualified Wages for the Employee

Retention Credit

Enter the qualified wages for the employee retention

credit (excluding the amount of any qualified health plan

expenses). For qualified wages paid after December 31,

2020, and before July 1, 2021, the applicable qualified

wages from the total entered on line 20 are entered on

Worksheet 2, Step 2, line 2a. For qualified wages paid

after June 30, 2021, and before January 1, 2022, the

applicable qualified wages from the total on line 20 are

entered on Worksheet 4, Step 2, line 2a.

Line 21. Qualified Health Plan Expenses for the

Employee Retention Credit

Enter the qualified health plan expenses for the employee

retention credit. These expenses are generally those

which are allocable to an employee (and to a period) in

which your business operations are fully or partially

suspended due to a governmental order or experience a

decline in gross receipts. The allocation will be treated as

proper if made on the basis of being pro rata among

periods of coverage. For more information, go to IRS.gov/

ERC. For qualified health plan expenses allocable to

qualified wages paid after December 31, 2020, and before

July 1, 2021, the applicable qualified expenses from the

total entered on line 21 are entered on Worksheet 2, Step

2, line 2b. For qualified health plan expenses allocable to

qualified wages paid after June 30, 2021, and before

January 1, 2022, the applicable qualified expenses from

the total entered on line 21 are entered on Worksheet 4,

Step 2, line 2b.

Line 22. Qualified Sick Leave Wages for Leave

Taken After March 31, 2021, and Before October

1, 2021

Enter the qualified sick leave wages you paid to your

employees for leave taken after March 31, 2021, and

before October 1, 2021, including any qualified sick leave

wages that were above the social security wage base and

any qualified sick leave wages excluded from the

definition of employment under sections 3121(b)(1)–(22).

See the instructions for line 12d, earlier, for more

information about qualified sick leave wages for leave

taken after March 31, 2021, and before October 1, 2021.

This amount is also entered on Worksheet 3, Step 2,

line 2a.

-23-

Line 23. Qualified Health Plan Expenses

Allocable to Qualified Sick Leave Wages

Reported on Line 22

Enter the qualified health plan expenses allocable to

qualified sick leave wages for leave taken after March 31,

2021, and before October 1, 2021. This amount is also

entered on Worksheet 3, Step 2, line 2b.

Line 24. Amounts Under Certain Collectively

Bargained Agreements Allocable to Qualified

Sick Leave Wages Reported on Line 22

Enter the collectively bargained defined benefit pension

plan contributions and collectively bargained

apprenticeship program contributions allocable to

qualified sick leave wages for leave taken after March 31,

2021, and before October 1, 2021. This amount is also

entered on Worksheet 3, Step 2, line 2c.

Line 25. Qualified Family Leave Wages for

Leave Taken After March 31, 2021, and Before

October 1, 2021

Enter the qualified family leave wages you paid to your

employees for leave taken after March 31, 2021, and

before October 1, 2021, including any qualified family

leave wages that were above the social security wage

base and any qualified family leave wages excluded from

the definition of employment under sections 3121(b)(1)–

(22). See the instructions for line 12d, earlier, for more

information about qualified family leave wages for leave

taken after March 31, 2021, and before October 1, 2021.

This amount is also entered on Worksheet 3, Step 2,

line 2g.

Line 26. Qualified Health Plan Expenses

Allocable to Qualified Family Leave Wages

Reported on Line 25

Enter the qualified health plan expenses allocable to

qualified family leave wages for leave taken after March

31, 2021, and before October 1, 2021. This amount is also

entered on Worksheet 3, Step 2, line 2h.

Line 27. Amounts Under Certain Collectively

Bargained Agreements Allocable to Qualified

Family Leave Wages Reported on Line 25

Enter the collectively bargained defined benefit pension

plan contributions and collectively bargained

apprenticeship program contributions allocable to

qualified family leave wages for leave taken after March

31, 2021, and before October 1, 2021. This amount is also

entered on Worksheet 3, Step 2, line 2i.

Line 28. If You're Eligible for the Employee

Retention Credit in the Third Quarter Solely

Because Your Business Is a Recovery Startup

Business . . .

If you're eligible for the employee retention credit in the

third quarter of 2021 solely because your business is a

recovery startup business, enter the total of any amounts

included on lines 12c and 14e that are attributable to

qualified wages paid after June 30, 2021, and before

October 1, 2021. Leave line 28 blank if you're a third-party

payer filing an aggregate Form 943 with an attached

Schedule R (Form 943).

Line 29. If You're Eligible for the Employee

Retention Credit in the Fourth Quarter Solely

Because Your Business Is a Recovery Startup

Business . . .

Under the Infrastructure Act, you must be a recovery

startup business to claim the employee retention credit for

qualified wages paid after September 30, 2021, and

before January 1, 2022 (fourth quarter 2021). If you're

eligible for the employee retention credit in the fourth

quarter of 2021 solely because your business is a

recovery startup business, enter the total of any amounts

included on lines 12c and 14e that are attributable to

qualified wages paid after September 30, 2021, and

before January 1, 2022. Leave line 29 blank if you're a

third-party payer filing an aggregate Form 943 with an

attached Schedule R (Form 943).

Third-Party Designee

If you want to allow an employee, a paid tax preparer, or

another person to discuss your Form 943 with the IRS,

check the “Yes” box in the Third-Party Designee section.

Enter the name, phone number, and five-digit personal

identification number (PIN) of the specific person to speak

with—not the name of the firm who prepared your tax

return. The designee may choose any five numbers as his

or her PIN.

By checking “Yes,” you authorize the IRS to talk to the

person you named (your designee) about any questions

we may have while we process your return. You also

authorize your designee to do all of the following.

• Give us any information that is missing from your return.

• Call us for information about processing your return.

• Respond to certain IRS notices that you have shared

with your designee about math errors and return

preparation. The IRS won't send notices to your designee.

You’re not authorizing your designee to bind you to

anything (including additional tax liability) or to otherwise

represent you before the IRS. If you want to expand your

designee’s authorization, see Pub. 947.

The authorization will automatically expire 1 year from

the due date (without regard to extensions) for filing your

Form 943. If you or your designee wants to terminate the

authorization, write to the IRS office for your location using

the Without a payment address under Where Should You

File, earlier.

Who Must Sign (Approved Roles)

The following persons are authorized to sign the return for

each type of business entity.

• Sole proprietorship—The individual who owns the

business.

• Corporation (including a limited liability company

(LLC) treated as a corporation)—The president, vice

president, or other principal officer duly authorized to sign.

• Partnership (including an LLC treated as a

partnership) or unincorporated organization—A

responsible and duly authorized partner, member, or

officer having knowledge of its affairs.

-24-

Instructions for Form 943 (2021)

• Single-member LLC treated as a disregarded entity

for federal income tax purposes—The owner of the

LLC or a principal officer duly authorized to sign.

• Trust or estate—The fiduciary.

Form 943 may also be signed by a duly authorized

agent of the taxpayer if a valid power of attorney has been

filed.

Alternative signature method. Corporate officers or

duly authorized agents may sign Form 943 by rubber

stamp, mechanical device, or computer software

program. For details and required documentation, see

Rev. Proc. 2005-39, 2005-28 I.R.B. 82, available at

IRS.gov/irb/2005-28_IRB#RP-2005-39.

Paid Preparer Use Only

A paid preparer must sign Form 943 and provide the

information in the Paid Preparer Use Only section if the

preparer was paid to prepare Form 943 and isn't an

employee of the filing entity. Paid preparers must sign

paper returns with a manual signature. The preparer must

give you a copy of the return in addition to the copy to be

filed with the IRS.

If you're a paid preparer, enter your Preparer Tax

Identification Number (PTIN) in the space provided.

Include your complete address. If you work for a firm,

enter the firm's name and the EIN of the firm. You can

apply for a PTIN online or by filing Form W-12. For more

information about applying for a PTIN online, go to

IRS.gov/PTIN. You can't use your PTIN in place of the EIN

of the tax preparation firm.

Generally, don't complete this section if you're filing the

return as a reporting agent and have a valid Form 8655 on

file with the IRS. However, a reporting agent must

complete this section if the reporting agent offered legal

advice, for example, advising the client on determining

whether its workers are employees or independent

contractors for federal tax purposes.

How To Get Forms, Instructions, and

Publications

You can view, download, or print most of the

forms, instructions, and publications you may

need at IRS.gov/Forms. Otherwise, you can go to

IRS.gov/OrderForms to place an order and have forms

mailed to you.

Instructions for Form 943 (2021)

Privacy Act and Paperwork Reduction Act Notice.

We ask for the information on Forms 943, 943-A, and

943-V to carry out the Internal Revenue laws of the United

States. We need it to figure and collect the right amount of

tax. Subtitle C, Employment Taxes, of the Internal

Revenue Code imposes employment taxes on wages and

provides for income tax withholding. These forms are

used to report the amount of taxes that you owe. Section

6011 requires you to provide the requested information if

the tax applies to you. Section 6109 requires you to

provide your identification number. If you fail to provide

this information in a timely manner, or provide false or

fraudulent information, you may be subject to penalties.

You’re not required to provide the information

requested on a form that is subject to the Paperwork

Reduction Act unless the form displays a valid OMB

control number. Books or records relating to a form or its

instructions must be retained as long as their contents

may become material in the administration of any Internal

Revenue law.

Generally, tax returns and return information are

confidential, as required by section 6103. However,

section 6103 allows or requires us to disclose this

information to others as described in the Code. We may

disclose your tax information to the Department of Justice

for civil and criminal litigation, and to cities, states, the

District of Columbia, and U.S. commonwealths and

possessions to administer their tax laws. We may also

disclose this information to other countries under a tax

treaty, to federal and state agencies to enforce federal

nontax criminal laws, or to federal law enforcement and

intelligence agencies to combat terrorism.

The time needed to complete and file these forms will

vary depending on individual circumstances. The

estimated average time for Form 943 is: Recordkeeping,

14 hr., 49 min.; Learning about the law or the form, 40

min.; Preparing and sending the form to the IRS, 2 hr., 7

min. The estimated average time for Form 943-V is 14

min. If you have comments concerning the accuracy of

these time estimates or suggestions for making this form

simpler, we would be happy to hear from you. You can

send us comments from IRS.gov/FormComments. Or you

can write to the Internal Revenue Service, Tax Forms and

Publications Division, 1111 Constitution Ave. NW,

IR-6526, Washington, DC 20224. Don't send Form 943 to

this address. Instead, see Where Should You File, earlier.

-25-

Worksheet 1. Credit for Qualified Sick and Family Leave Wages for

Leave Taken Before April 1, 2021

Keep for Your Records

Determine how you will complete this worksheet. (If you’re a third-party payer, you must complete this worksheet for each client for

which it is applicable, on a client-by-client basis.)

If you paid qualified sick leave wages and/or qualified family leave wages for leave taken before April 1, 2021, complete Step 1 and Step 2. Caution:

Use Worksheet 3 to figure the credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021.

Step 1.

1a

1b

1c

1d

1e

1f

1g

Step 2.

2a

2a(i)

2a(ii)

2a(iii)

2b

2c

2d

2e

2e(i)

2e(ii)

2e(iii)

2f

2g

2h

2i

2j

2k

Determine the employer share of social security tax after it is reduced by any credit claimed on Form 8974 and any credit

to be claimed on Form 5884-C and/or Form 5884-D

Enter the amount of social security tax from Form 943, line 3 . . . . . . . . . . . . . . . . . . . . 1a

Employer share of social security tax. Mulitply line 1a by 50% (0.50) . . . . . . . . . . .

1b

Enter the amount from Form 943, line 12a (credit from Form 8974) . . . . . . . . . . . . . . . 1c

Enter the amount to be claimed on Form 5884-C, line 11, for this year . . . . . . . . . . . . . 1d

Enter the amount to be claimed on Form 5884-D, line 12, for this year . . . . . . . . . . . . . 1e

Total nonrefundable credits already used against the employer share of social

security tax. Add lines 1c, 1d, and 1e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1f

Employer share of social security tax remaining. Subtract line 1f

from line 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1g

Figure the sick and family leave credit

Qualified sick leave wages reported on Form 943, line 2a . . . . . . . . . . . . . . . . . . . . . .

Qualified sick leave wages included on Form 943, line 4, but not included on Form 943,

line 2a, because the wages reported on that line were limited by the social security wage

base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total qualified sick leave wages. Add lines 2a and 2a(i) . . . . . . . . . . . . . . . . . . . . . . .

Qualified sick leave wages excluded from the definition of employment under sections

3121(b)(1)–(22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualified health plan expenses allocable to qualified sick leave wages (Form 943,

line 18) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Employer share of Medicare tax on qualified sick leave wages. Multiply line 2a(ii) by

1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Credit for qualified sick leave wages. Add lines 2a(ii), 2a(iii), 2b, and 2c . . . . . . . . .

Qualified family leave wages reported on Form 943, line 2b . . . . . . . . . . . . . . . . . . . .

Qualified family leave wages included on Form 943, line 4, but not included on Form 943,

line 2b, because the wages reported on that line were limited by the social security wage

base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total qualified family leave wages. Add lines 2e and 2e(i) . . . . . . . . . . . . . . . . . . . . . .

Qualified family leave wages excluded from the definition of employment under sections

3121(b)(1)–(22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualified health plan expenses allocable to qualified family leave wages (Form 943,

line 19) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Employer share of Medicare tax on qualified family leave wages. Multiply line 2e(ii) by

1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Credit for qualified family leave wages. Add lines 2e(ii), 2e(iii), 2f, and 2g . . . . . . . .

Credit for qualified sick and family leave wages. Add lines 2d and 2h . . . . . . . . . .

Nonrefundable portion of credit for qualified sick and family leave wages for

leave taken before April 1, 2021. Enter the smaller of line 1g or line 2i. Enter this

amount on Form 943, line 12b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Refundable portion of credit for qualified sick and family leave wages for leave

taken before April 1, 2021. Subtract line 2j from line 2i and enter this amount on Form

943, line 14d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

-26-

2a

2a(i)

2a(ii)

2a(iii)

2b

2c

2d

2e

2e(i)

2e(ii)

2e(iii)

2f

2g

2h

2i

2j

2k

Instructions for Form 943 (2021)

Worksheet 2. Employee Retention Credit for Qualified Wages Paid

After December 31, 2020, and Before July 1, 2021

Keep for Your Records

Determine how you will complete this worksheet. (If you’re a third-party payer, you must complete this worksheet for each client for which

it is applicable, on a client-by-client basis.)

If you paid qualified wages after December 31, 2020, and before July 1, 2021, for purposes of the employee retention credit, complete Step 1 and Step

2. If you’re claiming a credit for qualified sick and family leave wages for leave taken before April 1, 2021, complete Worksheet 1 before starting this

worksheet. Caution: Use Worksheet 4 to figure the employee retention credit for qualified wages paid after June 30, 2021, and before January 1, 2022.

Step 1.

1a

1b

1c

1d

1e

1f

1g

1h

Step 2.

2a

2b

2c

2d

2e

2f

2g

2h

2i

Determine the employer share of social security tax after it is reduced by any credit claimed on Form 8974 and any credit

to be claimed on Form 5884-C and/or Form 5884-D

If you completed Worksheet 1 to claim a credit for qualified sick and family leave wages for

leave taken before April 1, 2021, enter the amount from Worksheet 1, Step 1, line 1g, and

go to Step 2. If you’re not claiming a credit for qualified sick and family leave wages for

leave taken before April 1, 2021, continue by completing lines 1b–1h below and then go to

Step 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1a

Enter the amount of social security tax from Form 943, line 3 . . . . . . . . . . . . . . . . . . . . . 1b

Employer share of social security tax. Multiply line 1b by 50% (0.50) . . . . . . . . . . . . .

1c

Enter the amount from Form 943, line 12a (credit from Form 8974) . . . . . . . . . . . . . . . . . 1d

Enter the amount to be claimed on Form 5884-C, line 11, for this year . . . . . . . . . . . . . . . 1e

Enter the amount to be claimed on Form 5884-D, line 12, for this year . . . . . . . . . . . . . . . 1f

Total nonrefundable credits already used against the employer share of social

security tax. Add lines 1d, 1e, and 1f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1g

Employer share of social security tax remaining. Subtract line 1g from line 1c . . . . . .

1h

Figure the employee retention credit for qualified wages paid after December 31, 2020, and before July 1, 2021

Caution: The total amount included on lines 2a and 2b is limited to a maximum of $10,000 per employee in each of the first quarter

and the second quarter of 2021 ($20,000 in total for purposes of this worksheet).

Qualified wages (excluding qualified health plan expenses) for the employee retention

credit for qualified wages paid after December 31, 2020, and before July 1, 2021 (these

qualified wages are included in the total reported on Form 943, line 20) . . . . . . . . . . . . . 2a

Qualified health plan expenses allocable to qualified wages for the employee retention

credit for qualified wages paid after December 31, 2020, and before July 1, 2021 (these

qualified wages are included in the total reported on Form 943, line 21) . . . . . . . . . . . . . 2b

Add lines 2a and 2b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2c

Retention credit. Multiply line 2c by 70% (0.70) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2d

Enter the amount of the employer share of social security tax from Step 1, line 1a, or, if

applicable, Step 1, line 1h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e

Enter the nonrefundable portion of the credit for qualified sick and family leave wages for

leave taken before April 1, 2021, from Worksheet 1, Step 2, line 2j . . . . . . . . . . . . . . . . . 2f

Subtract line 2f from line 2e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2g

Nonrefundable portion of employee retention credit. Enter the smaller of line 2d or

line 2g. Enter this amount on Form 943, line 12c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2h

Refundable portion of employee retention credit. Subtract line 2h from line 2d and

enter this amount on Form 943, line 14e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2i

Instructions for Form 943 (2021)

-27-

Worksheet 3. Credit for Qualified Sick and Family Leave Wages for

Leave Taken After March 31, 2021, and Before October 1, 2021

Keep for Your Records

Determine how you will complete this worksheet. (If you’re a third-party payer, you must complete this worksheet for each client for which

it is applicable, on a client-by-client basis.)

If you paid qualified sick leave wages and/or qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021, complete

Step 1 and Step 2. Caution: Use Worksheet 1 to figure the credit for qualified sick and family leave wages for leave taken before April 1, 2021.

Step 1.

Step 2.

1a

1b

2a

2a(i)

2a(ii)

2a(iii)

2a(iv)

2b

2c

2d

2e

2f

2g

2g(i)

2g(ii)

2g(iii)

2g(iv)

2h

2i

2j

2k

2l

2m

2n

2o

2p

2q

2r

2s

Determine the employer share of Medicare tax

Enter the amount of Medicare tax from Form 943, line 5 . . . . . . . . . . . . . . . . . . . . . . . . .

Employer share of Medicare tax. Multiply line 1a by 50% (0.50) . . . . . . . . . . . . . . . . .

Figure the sick and family leave credit

Qualified sick leave wages for leave taken after March 31, 2021, and before October 1,

2021 (Form 943, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualified sick leave wages included on Form 943, line 22, that were not included as wages

reported on Form 943, lines 2 and 4, because the qualified sick leave wages were

excluded from the definition of employment under sections 3121(b)(1)–(22) . . . . . . . . . .

Subtract line 2a(i) from line 2a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualified

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