Changes to definition of qualified wages

 

Qualified wages do not include:

  • Wages paid to or incurred for any employee after December 31, 2020, and before July 1, 2021, if you use the same wages to claim the employee retention credit on an employment tax return such as Form 941, Employer's QUARTERLY Federal Tax Return;
     
  • Wages paid to or incurred for any employee after March 31, 2021, and before October 1, 2021, if you use the same wages to claim the credit for qualified sick and family leave wages on an employment tax return such as Form 941; and
     
  • Wages paid to or incurred for any employee generally after December 27, 2019, and before April 17, 2021, if you use the same wages 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 the Instructions for Form 8845 will include these changes.