Form 8932 Credit for Employer Differential Wage Payments

4
TLS, have you
transmitted all R
text files for this
cycle update?

Date

I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 8932, PAGE 1 of 2
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES
PRINTS: HEAD to HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 407 mm (16") 3 279 mm (11"),
FOLD TO: 203 mm (8") 3 279 mm (11")
PERFORATE: ON FOLD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form

8932

Action
O.K. to print
Revised proofs
requested

Credit for Employer Differential Wage Payments

Department of the Treasury
Internal Revenue Service

Name(s) shown on return

f
o
s
a
8
t
0
f
0
a
2
r
/
D /08
0
1
©

Attach to your tax return

Attachment
Sequence No.

Eligible differential wage payments paid during the tax year (see instructions)
Multiply line 1 by 20% (.20) (see instructions for the adjustment you must make)

3

Credit for employer differential wage payments from partnerships, S corporations, cooperatives,
estates, and trusts
Add lines 2 and 3. Cooperatives, estates, and trusts, go to line 5; partnerships and S corporations,
report this amount on Schedule K; all others, report this amount on this amount on Form 3800,
line 1w
Amount allocated to patrons of the cooperative or beneficiaries of the estate or trust
(see instructions)
Cooperative, estates, and trusts. Subtract line 5 from line 4. Report this amount on Form 3800,
line 1w

6

General Instructions

Section references are to the Internal Revenue Code.

Purpose of Form

The credit for employer differential wage payments was
added as part of the general business credit. Use Form
8932 to claim the credit for payments you made to
qualified employees during the tax year. Only differential
wage payments made to qualified employees after
June 17, 2008, and before January 1, 2010, can be
used to figure the credit. The credit is available only to
eligible small business employers. The credit is 20% of
the first $20,000 of differential wage payments paid to
each qualified employee.
The credit for employer differential wage payments is
part of the general business credit reported on Form
3800, General Business Credit.
For details, see section 45P.

Definitions
Qualified Employee
A qualified employee is an employee of an eligible small
business employer (see below) for the 91-day period
immediately preceding the period for which any
differential wage payment (see below) is made.
Differential Wage Payment
To be considered a differential wage payment, the
payment must meet both of the following requirements.
● The payment is made by an eligible small business
employer to a qualified employee for any period during
which the employee is performing service in the
uniformed services of the United States while on active
duty for a period of more than 30 days.
● The payment represents all or a portion of the wages
the employee would have received from the employer
if the employee were performing services for the
employer.

161

Identifying number

1
2

5

Signature

OMB No. 1545-XXXX

(December 2008)

4

Date

1
2

3

4

5
6

Eligible Small Business Employer

An eligible small business employer means any
taxpayer that:
● Employed on average fewer than 50 employees on
business days during the tax year, and
● Under a written plan of the employer, provides
eligible differential wage payments to every qualified
employee of the employer.
Uniformed Services
Uniformed services means the Armed Forces, Army
National Guard, Air National Guard, the commissioned
corps of the Public Health Service, and any other
category of person designated by the President in time
of war or national emergency.

Members of a Controlled Group Treated as
a Single Employer
For figuring the credit, all persons treated as a single
employer under subsection (b), (c), (m), or (o) of section
414 are treated as a single employer.

Coordination With Other Credits
Any credit normally allowed for compensation paid to
any employee will be reduced by the credit
determined.

Disallowance for Failure to Comply With
Employment or Reemployment Rights of
Members of the Reserve Components of
the Armed Forces of the United States
No credit will be allowed to a taxpayer for:
● Any tax year beginning after June 17, 2008, in which
the taxpayer is under a final order, judgment, or other
process issued or required by a district court of the
United States under section 4323 of Title 38 of the
United States Code with respect to a violation of
chapter 43 of Title 38; and
● The two succeeding tax years.

For Paperwork Reduction Act Notice, see page 2.

Cat. No. 37747W

Form

8932

(12-2008)

4
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 8932, PAGE 2 of 2
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES
PRINTS: HEAD to HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 407 mm (16") 3 279 mm (11"),
FOLD TO: 203 mm (8") 3 279 mm (11")
PERFORATE: ON FOLD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8932 (12-2008)

Page

f
o
s
a
8
t
0
f
0
a
2
r
/
D /08
0
1

Carryback and Carryforward of Unused
Credit

If there is any unused credit due to the tax liability limit
on Form 3800, you cannot carryback any unused credit
to any tax year ending before June 18, 2008. You wil be
able to carry the credit forward 20 years.

Specific Instructions

Line 1
Generally, an eligible small business employer (defined
earlier) will be able to take a credit of 20% of the first
$20,000 in differential wage payments made to each
qualified employee during the tax year.
Line 2
Generally, you must reduce the deductions on your
return for salaries and wages by the credit on line 2,
even it you cannot take the full credit this year because
of the tax liability limit. If you capitalized any costs on
which you figured the credit, reduce the amount
capitalized by the credit attributable to these costs.

Line 5
Cooperative. A cooperative described in section
1381(a) must allocate to its patrons the credit in excess
of its tax liability limit. Therefore, to figure the unused
amount of the credit allocated to patrons, the
cooperative must first figure its tax liability. While any
excess is allocated to patrons, any credit recapture
applies as if the cooperative has claimed the entire
credit.

Estates and trusts. Allocate the credit for employer
differential wage payments on line 4 between the estate
or trust and the beneficiaries in the same proportion as
income allocated and enter the beneficiaries share on
line 5.

2

Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal
Revenue laws of the United States. You are required to
give us the information. We need it to ensure that you
are complying with these laws and to allow us to figure
and collect the right amount of tax.
You are not required to provide the information
requested on a form that is subject to the Paperwork
Reduction Act unless the form displays a valid OMB
control number. Books or records relating to a form or
its instructions must be retained as long as their
contents may become material in the administration of
any Internal Revenue law. Generally, tax returns and
return information are confidential, as required by
section 6103.
The time needed to complete and file this form will
vary depending on individual circumstances. The
estimated burden for individual taxpayers filing this
form is approved under OMB control number
1545-0074 and is included in the estimates shown in
the instructions for their individual income tax return.
The estimated burden for all other taxpayers who file
this form is shown below.
Recordkeeping
X hrs., XX
54 min.
1
Learning about the
law or the form
X hrs., 30
XX min.
Preparing and sending the form
to the IRS
X hrs., 33
XX min.
If you have comments concerning the accuracy of
these time estimates or suggestions for making this
form simpler, we would be happy to hear from you.
See the instructions for the tax return with which this
form is filed.

Printed on recycled paper