What is Worksheet 1 in Form 941, and why is it used for?
2.4k views | Last modified 3/23/2021 2:39:18 AM EST | Added by ExpressEfile Team

Applicable To
Form 941 Form 1099 / W-2 Form 2290

Worksheet 1 is included in Form 941 to determine the COVID-19 tax credits announced by the government. It is being used from the second quarter of 2020 while filing Form 941. It is used to calculate the refundable and nonrefundable portions of qualified sick and family leave credit and employee retention credit.  

Worksheet 1 has three steps and employers have to complete the necessary steps based on how they paid their employees.

Step 1 - Determine the employer share of social security tax this quarter after it is reduced by any credit claimed on Form 8974 and any credit to be claimed on Form 5884-C/ Form 5884-D. 

Step 2 - Figure the sick and family leave credit.

Step 3 - Figure the employee retention credit.

After completing the worksheet, both refundable and nonrefundable credits can be calculated.

If you e-file Form 941 with ExpressEfile, Worksheet 1 values will be auto-populated. However, there are few changes made in Form 941 Worksheet 1 for Quarter 1 of 2021. Click here to know more about the changes. 


Watch the help video below on completing Worksheet 1 of Form 941 through ExpressEfile and complete your filing accurately and quickly:

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