Changes to definition of differential wage payments

 

Differential wage payments do not include:

  • Wage payments made after December 31, 2020, and before July 1, 2021, if you use the same wage payments to claim the employee retention credit on an employment tax return such as Form 941, Employer's QUARTERLY Federal Tax Return;
  • Wage payments made after March 31, 2021, and before October 1, 2021, if you use the same wage payments to claim the credit for qualified sick and family leave wages on an employment tax return such as Form 941; and
  • Wage payments made generally after December 27, 2019, and before April 17, 2021, if you use the same wage payments to claim the 2020 qualified disaster employee retention credit on Form 5884-A, Employee Retention Credit for Employers Affected by Qualified Disasters.

The next revision of Form 8932 will include these instructional changes.