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How to File Your Form 8974: ADP Run

How to File Your Form 8974 with ADP Run

Summary:

  • The IRS requires that you file Form 8974 the quarter after you file your income tax return with Form 6765 attached.
  • If you miss the filing deadline, you will need to amend that quarter’s payroll tax return.
  • ADP requires you to submit a completed Form 8974 to ADP.JobCredit.Request@adp.com.
  • If you’re filing to claim the R&D payroll tax credit for the previous tax year, the earliest you can process your credit is one quarter after you file your federal income tax return and Form 6765. The deadline to file for any given quarter is 30 days after the end of the quarter. For example, if you’re filing to claim the payroll tax credit for 2021, and you intend on filing your Federal Tax Return in Q1 2022, then the earliest you can process your credit is Q2 2022. To do so, you must file your Form 8974 and Form 941 by 30 days after the end of Q2 2022.
  • Some of the information here is sourced from ADP and may not reflect ADP Run’s latest changes.

How to complete Form 8974:

In the quarter following the filing of your income tax return and Form 6765, you will need to send ADP Run a completed Form 8974 to ADP.JobCredit.Request@adp.com. This should be done at least 2 weeks before the quarter closes. Neo.Tax will help you to create the Header and Part 1 of Form 8974. You will need to complete Part 2 of Form 8974 using Form 941 provided by ADP Run.

Steps:

  • Use Neo.Tax to complete Part 1 of Form 8974.
  • After filing your income tax return with Form 6765 attached, locate the Form 8974 generated by Neo.Tax, and complete Part 1 columns C and E using information provided in Form 6765.
  • Line 7: Enter the amount from Part 1, line 6, column (g).
  • Line 8: Enter the amount from Form 941, line 5a, column 2.
  • Line 9: Enter the amount from Form 941, line 5b, column 2.
  • Line 10: Add lines 8 and 9. Enter the result on line 10.
  • Line 11: Multiply line 10 by 50% (0.50).
  • Line 12: Enter the smaller of line 7 or line 11. Make sure to enter this amount on Form 941, line 11. If line 12 is less than line 7, the remaining amount can be used on a Form 8974 for the next quarter.
  • You’re done! Send your completed Form 8974 to ADP.JobCredit.Request@adp.com for filing. Be sure to get confirmation from ADP that this form has been filed.