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Department of the Treasury
Internal Revenue Service
Instructions for Form 5884-A
(Rev. March 2021)
Employee Retention Credit for Employers Affected by Qualified Disasters
Section references are to the Internal Revenue Code principal place of employment with the employer
unless otherwise noted. immediately before the incident period of the qualified
disaster was in the 2018 through 2019 qualified disaster
Future Developments zone.
For the latest information about developments related to An employee isn’t an eligible employee for any
Form 5884-A and its instructions, such as legislation ! period during which the eligible employer is
enacted after they were published, go to IRS.gov/ CAUTION allowed a work opportunity credit for wages paid
Form5884A. to or incurred for the employee.
General Instructions Qualified wages. For this purpose, qualified wages are
wages you paid to or incurred for eligible employees at
Purpose of Form any time on or after the date your trade or business first
Use Form 5884-A to claim the employee retention credit became inoperable at the employee’s principal place of
for employers affected by qualified disasters. The current employment (determined immediately before the first day
year employee retention credit for employers affected by of the incident period of the qualified disaster) and before
qualified disasters may consist of the following two the earlier of:
credits. 1. The date your trade or business resumed significant
• 2018 through 2019 qualified disaster employee operations at that place, or
retention credit. 2. The date 150 days after the last day of the incident
• 2020 qualified disaster employee retention credit. period.
Partnerships, S corporations, cooperatives, estates, The amount of qualified wages that may be taken into
and trusts must file this form to claim the credit. All other account is limited to $6,000 per employee. This includes
taxpayers aren’t required to complete or file this form if wages paid or incurred whether the employee performs
their only source for this credit is a partnership, S no services, performs services at a place of employment
corporation, cooperative, estate, or trust. Instead, they other than the principal place of employment, or performs
can report this credit directly on Form 3800, General services at the principal place of employment before
Business Credit. significant operations have resumed.
Which Revision To Use Wages qualifying for the credit generally have the same
meaning as wages subject to the Federal Unemployment
Use the March 2021 revision of Form 5884-A for tax years
Tax Act (FUTA). Qualified wages also include amounts
beginning in 2018 or later, until a later revision is issued.
you paid or incurred for medical or hospitalization
Use prior revisions of the form for earlier tax years. All
expenses in connection with sickness or accident
revisions are available at IRS.gov/Form5884A.
disability. Qualified wages don’t include wages paid to or
2018 Through 2019 Qualified Disaster incurred for your dependent or wages paid to or incurred
for an employee related to you.
Employee Retention Credit (Form For agricultural employees, if the work performed by
5884-A, Line 1a) any employee during more than half of any pay period
An eligible employer who continued to pay or incur wages qualifies under FUTA as agricultural labor, the first $6,000
after the employer’s business became inoperable of that employee’s wages subject to social security and
because of damage from a 2018 through 2019 qualified Medicare taxes are qualified wages.
disaster may be able to claim a credit equal to 40% of up For purposes of this credit, qualified wages paid by a
to $6,000 of qualified wages paid to or incurred for each third-party payer (including an employee leasing
eligible employee. company, a professional employer organization, or a
Eligible employer. For this purpose, an eligible Certified Professional Employer Organization) to eligible
employer is an employer who conducted an active trade employees of an eligible employer are considered
or business in a 2018 through 2019 qualified disaster qualified wages incurred by the eligible employer. Only
zone at any time during the applicable incident period and the eligible employer, and not the third-party payer, can
whose trade or business was inoperable at any time on or take into account such qualified wages in claiming the
after the first day of the incident period and on or before credit.
December 20, 2019, because of damage sustained from More information. For more information about the 2018
the qualified disaster. through 2019 qualified disaster employee retention credit,
Eligible employee. For this purpose, an eligible see Public Law 116-94, Division Q, sections 201 and 203.
employee is an employee of an eligible employer whose
Mar 25, 2021 Cat. No. 71046G
