Drake Accounting®: How are the Qualified Sick and Family Leave Wages and the Employee Retention Credits calculated?
Both the Sick and Family Leave Credit and the Employee Retention Credit have a nonrefundable and refundable portion. To figure the nonrefundable portion, complete the applicable worksheets. These credits, along with other items on Form 941, serve to reduce the employer's liability on Form 941, Part 1. See the Form 941 Instructions and the About Form 941 page for further information.
Beginning with the second quarter 2020 Form 941, the form has been updated to include Worksheet 1 (on page 5) that is used to calculate the credits. A second version of the worksheet in DAS 2020 was released to calculate the credit for Quarters 3 and 4. In DAS 2021, a different version of the worksheet is specific to Quarter 2021. For Quarter 2 of 2021 onwards, there are a total of 5 worksheet pages. Worksheet 1 (different from Worksheet 1 for Quarter 1 2021), 2, 3, and 5 are used for Quarter 2. Worksheet 1 (different from Worksheet 1 for Quarter 1 2021), 3, 4, and 5 are used for Quarters 3-4 2021.