Page 251 - BusinessStructures & Forms

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Fileid: … tions/i943/2022/a/xml/cycle07/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
You must include the full amount (both the or employees on the basis of employment tenure when
TIP nonrefundable and refundable portions) of the making qualified sick and/or family leave available to
credit for qualified sick and family leave wages in employees. See Highly compensated employee, later, for
your gross income for the tax year that includes the last the definition.
day of any calendar quarter in which a credit is allowed. For leave taken after March 31, 2021, and before
Line 12d. Nonrefundable Portion of October 1, 2021, the credit for qualified sick and family
leave wages is reduced by the amount of the credit
Credit for Qualified Sick and Family allowed under section 41 (for the credit for increasing
Leave Wages for Leave Taken After research activities) with respect to wages taken into
account for determining the credit for qualified sick and
March 31, 2021, and Before October family leave wages; and any wages taken into account in
1, 2021 determining the credit for qualified sick and family leave
wages can't be taken into account as wages for purposes
Complete line 12d only if qualified sick leave of the credits under sections 45A, 45P, 45S, and 51. For
! wages and/or qualified family leave wages were leave taken after March 31, 2021, and before October 1,
2021, qualified wages also don't include wages that were
CAUTION paid in 2022 for leave taken after March 31, 2021, used as payroll costs in connection with a Shuttered
and before October 1, 2021. Venue Operator Grant under section 324 of the Economic
Employers with fewer than 500 employees and certain Aid to Hard-Hit Small Businesses, Nonprofits, and Venues
governmental employers without regard to number of Act; or a restaurant revitalization grant under section 5003
employees (except for the federal government and its of the ARP. Employers can receive both a Small Business
agencies and instrumentalities unless described in Interruption Loan under the Paycheck Protection Program
section 501(c)(1)) are entitled to a credit if they provide and the credit for qualified sick and family leave wages;
paid sick leave to employees that otherwise meets the however, employers can't receive both loan forgiveness
requirements of the EPSLA, as amended for purposes of and a credit for the same wages. The same wages can't
the ARP, and/or provide paid family leave to employees be treated as both qualified sick leave wages and
that otherwise meets the requirements under the qualified family leave wages.
Expanded FMLA, as amended for purposes of the ARP, Any credit in excess of the remaining amount of the
for qualified sick and family leave wages for leave taken
after March 31, 2021, and before October 1, 2021. For employer share of Medicare tax is refundable and
reported on Form 943, line 14f. For more information on
purposes of this credit, qualified sick leave wages and the credit for qualified sick and family leave wages, go to
qualified family leave wages are wages for social security IRS.gov/PLC.
and Medicare tax purposes, determined without regard to
the exclusions from the definition of employment under Qualified health plan expenses allocable to qualified
sections 3121(b)(1)–(22), that an employer pays that sick leave and family leave wages. The credit for
otherwise meet the requirements of the EPSLA or qualified sick leave wages and qualified family leave
Expanded FMLA, as enacted under the FFCRA and wages is increased to cover the qualified health plan
amended for purposes of the ARP. Enter the expenses that are properly allocable to the qualified leave
nonrefundable portion of the credit for qualified sick and wages for which the credit is allowed. These qualified
family leave wages from Worksheet 2, Step 2, line 2p. health plan expenses are amounts paid or incurred by the
employer to provide and maintain a group health plan but
The credit for qualified sick and family leave wages only to the extent such amounts are excluded from the
consists of the: employees' income as coverage under an accident or
• Qualified sick leave wages and/or qualified family leave health plan. The amount of qualified health plan expenses
wages; generally includes both the portion of the cost paid by the
• Qualified health plan expenses allocable to qualified employer and the portion of the cost paid by the employee
sick leave and family leave wages; with pre-tax salary reduction contributions. However,
• Collectively bargained defined benefit pension plan qualified health plan expenses don't include amounts that
contributions, subject to the qualified leave wage the employee paid for with after-tax contributions. For
limitations, allocable to the qualified sick and family leave more information, go to IRS.gov/PLC.
wages;
• Collectively bargained apprenticeship program Collectively bargained defined benefit pension plan
contributions, subject to the qualified leave wage contributions. For purposes of qualified sick and family
limitations, allocable to the qualified sick and family leave leave wages, collectively bargained defined benefit
wages; and pension plan contributions are contributions for a calendar
• Employer share of social security and Medicare tax quarter that are:
allocable to the qualified sick and family leave wages. • Paid or incurred by an employer on behalf of its
employees to a defined benefit plan, as defined in section
The nonrefundable portion of the credit is limited to the 414(j), which meets the requirements of section 401(a);
employer share of Medicare tax reported on Form 943, • Made based on a pension contribution rate; and
line 5. You can't claim the credit for leave taken after • Required to be made under the terms of a collective
March 31, 2021, and before October 1, 2021, if you bargaining agreement in effect during the quarter.
provided the leave in a manner that discriminates in favor Pension contribution rate. The pension contribution
of highly compensated employees, full-time employees, rate is the contribution rate that the employer is obligated

-14- Instructions for Form 943 (2022)