Line 6: Total taxes before adjustments
The value entered in this line should be a sum of lines 3, 5e, and 5f.
Line 7: Current quarter’s adjustment for fractions of cents
Enter the adjustment for a fraction of cents.
Fractions-of-cents: While running payroll, social security and Medicare taxes are calculated. If the calculated tax values are in fractions-of-cents, the amount will be rounded to the nearest cent. If you notice a small difference between your total taxes after adjustments and credits and total deposits, you have to report in this line.
Line 8: Current quarter’s adjustment
for sick pay
Enter the adjustment for sick pay.
If your third-party payer of sick pay transfers the liability for the employer share of Social Security and Medicare taxes to you, enter a negative adjustment on line 8 for the amount the third-party payer withheld and deposited.
Line 9: Current quarter’s adjustments for tips and group-term life insurance
Enter the adjustments for tips and group-terms life insurance.
Enter a negative adjustment for any uncollected employee share of social security and Medicare taxes on tips, and the uncollected employee share of social security and Medicare taxes on group-term life insurance premiums paid for former employees.
Line 10: Total taxes after adjustments
Enter the total tax after the adjustments. Add the values from lines 6, 7, 8, and 9.
Line 11a: Qualified small business payroll tax credit for increasing
Enter the amount calculated in Form 8974.
Form 8874 - This form is used to calculate the amount of credit that can be claimed for the increasing research activities.
Line 11b: Nonrefundable portion of credit for qualified sick and family leave wages from Worksheet 1 (Not part of the original form. Included due to
Use Worksheet 1 to calculate the amount of the combined credit for qualified sick leave wages and qualified family leave wages for which it is eligible with respect to the quarter.
Line 11c: Nonrefundable portion of employee retention credit from
Worksheet 1 (Not part of the original form. Included due to COVID-19 changes)
Use Worksheet 1 to calculate the amount of the employee retention credit for which it is eligible with respect to the quarter.