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Page 2 of 4 Fileid: … ns/i8844/202112/a/xml/cycle05/source 10:47 - 8-Dec-2021
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
• Desert Communities, CA (part of Riverside County) individual who owns, directly or indirectly, more than 50
• Southwest Georgia United, GA (part of Crisp County percent in value of the outstanding stock of the
and all of Dooly County) corporation, or, if the taxpayer is an entity other than a
• Southernmost Illinois Delta, IL (parts of Alexander and corporation, to any individual who owns, directly or
Johnson Counties and all of Pulaski County) indirectly, more than 50 percent of the capital and profits
• Kentucky Highlands, KY (part of Wayne County and all interests in the entity (determined with the application of
of Clinton and Jackson Counties) section 267(c))
• Aroostook County, ME (part of Aroostook County) • If the taxpayer is an estate or trust, is a grantor,
• Mid-Delta, MS (parts of Bolivar, Holmes, Humphreys, beneficiary, or fiduciary of the estate or trust, or is an
Leflore, Sunflower, and Washington Counties) individual who bears any of the relationships described in
• Griggs-Steele, ND (part of Griggs County and all of subparagraphs (A) through (G) of section 152(d)(2) to a
Steele County) grantor, beneficiary, or fiduciary of the estate or trust or
• Oglala Sioux Tribe, SD (parts of Jackson and Bennett • Is a dependent (described in section 152(d)(2)(H)) of
Counties and all of Shannon County) the taxpayer, or, if the taxpayer is a corporation, of an
• Middle Rio Grande FUTURO Communities, TX (parts of individual described in subparagraph (A), or, if the
Dimmit, Maverick, Uvalde, and Zavala Counties) taxpayer is an estate or trust, of a grantor, beneficiary, or
• Rio Grande Valley, TX (parts of Cameron, Hidalgo, fiduciary of the estate or trust.
Starr, and Willacy Counties)
Early termination of employee. Generally, an individual
Qualified zone employee. A qualified zone employee is is not a qualified zone employee unless employed for at
any employee (full-time or part-time) of the employer who: least 90 days. The 90-day requirement does not apply in
• Performs substantially all of the services for that the following situations.
employer within an empowerment zone in the employer’s • The employee is terminated because of misconduct as
trade or business, and determined under the applicable state unemployment
• Has his or her principal residence within that compensation law.
empowerment zone while performing those services. • The employee becomes disabled before the 90th day.
See Qualified Zone Employees below for a list of However, if the disability ends before the 90th day, the
persons who are not qualified employees. employer must offer to reemploy the former employee.
An employee is not treated as terminated if the
Qualified Zone Employees corporate employer is acquired by another corporation
Any person may be a qualified employee except the under section 381(a) and the employee continues to be
following. employed by the acquiring corporation. Nor is a mere
• A 5 percent owner: If the employer is a corporation, any change in the form of conducting the trade or business
person who owns (or is considered to own under section treated as a termination if the employee continues to be
318) more than 5% of the outstanding or voting stock of employed in such trade or business and the taxpayer
the employer or, if not a corporate employer, more than retains a substantial interest therein.
5% of the capital or profits interest in the employer. See
section 416(i)(1)(B) for details. Wages
• Any individual employed by the employer for less than Wages are defined in section 51(c) and are generally
90 days. For exceptions, see Early termination of wages (excluding tips) subject to the Federal
employee, later. Unemployment Tax Act (FUTA), without regard to the
• Any individual employed by the employer at any private FUTA dollar limitation. The following are also treated as
or commercial golf course, country club, massage parlor, wages.
hot tub facility, suntan facility, racetrack or other facility • Amounts paid or incurred by the employer as
used for gambling, or any store the principal business of educational assistance payments excludable from the
which is the sale of alcoholic beverages for consumption employee’s gross income under section 127. However,
off premises. this does not apply if the employee has a relationship to
• Any individual employed by the employer in a trade or the employer described in section 267(b) or 707(b)(1)
business of which the principal activity is farming (see (substituting “10%” for “50%” in those sections) or the
Note below), but only if at the close of the tax year the employer and employee are engaged in trades or
sum of the following amounts exceeds $500,000. businesses under common control (within the meaning of
1. The larger of the unadjusted bases or fair market sections 52(a) and (b)).
value of the farm assets owned by the employer. • Amounts paid or incurred by the employer on behalf of
an employee under age 19 for a youth training program
2. The value of the farm assets leased by the
operated by that employer in conjunction with local
employer.
education officials.
Note. Certain farming activities are described in section Qualified empowerment zone wages do not include:
2032A(e)(5)(A) or (B). • Wages paid after June 30, 2021, and before January 1,
No wages shall be taken into account with respect to 2022, and used to figure the credit for employer
an individual who differential wage payments can't also be used to figure a
• Bears any of the relationships described in coronavirus-related employee retention credit.
subparagraphs (A) through (G) of section 152(d)(2) to the • Wages paid to or incurred for any employee after
taxpayer, or, if the taxpayer is a corporation, to an December 31, 2020, and before July 1, 2021, if you use
-2- Instructions for Form 8844 ( December 2021)
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