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Paul R
March 30, 2021
Question

advanced earned income credit

  • March 30, 2021
  • 1 reply
  • 0 views

How do I properly apply the advanced earned income credit option using QuickBooks enterprise?

 

The company I process payroll for has several employees who have consistently received large refunds due to having children and getting large amounts refunded due to the EITC credit. I would like to offer them the option to have this money bi-weekly with their paychecks to pay for groceries and other bills as appose to wait for it once a year. 

 

Few concerns so far, Quickbooks does not seem to auto-calculate this and roll it up to the pay stub. 2nd, I can't tell how it would offset the federal tax deposits I would be making with these pay periods as well as the 941 quarterly filling. I want to make sure I understand the flow of the information before offering this to the maybe dozen employees who could utilize it.

 

thanks!

1 reply

Rose-A
Rose-A
March 30, 2021

Hey there, Paul R. Allow me to help and get you pointed in the right direction who can help you with applying the advanced earned income credit option in QuickBooks Desktop.

 

To help you apply for the advanced EITC, you might want to check with your state so they can provide you the requirements and guide you in setting this up in QuickBooks. Also, they'll be able to answer all income credit concerns as well as how to report this in the 941 forms.

 

You can go through the following article for your reference: Learn about Earned Income Tax Credit reporting requirements. On the same link, you'll find resources from the IRS. If your state is not on the list, I'd suggest getting in touch with their agency.

 

For your payroll reference, check out this article: Payroll 101. It contains more information about the different types of compensation as well as on what are the types of federal forms you need to file. Also, this will provide you a sample breakdown of a paycheck.

 

I'm just a few clicks away if there's anything else you need or if you have any other QuickBooks concerns. I need to make sure I've got you covered. Have a good one.

Rose-A
Rose-A
March 31, 2021

Hi, Paul R.

 

Hope you're doing great. I wanted to see how everything is going about the advanced earned income credit option you had yesterday. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I'd be happy to help you at anytime.

 

Looking forward to your reply. Have a pleasant day ahead!

J
jj41662
March 30, 2022

That would be a very helpful answer if those links were still viable.  Especially since it seems you are the ONLY person who knows how the advanced EIC credit is handled in QB.  Same for the Child Care credit, which is not even a payroll item.  Could you point me somewhere to find the answers to my queries because no matter how I word the search query, the only article is yours.

 

Thank you for your help,

JJ

[email address removed]

@Rose-A wrote:

Hi, Paul R.

 

Hope you're doing great. I wanted to see how everything is going about the advanced earned income credit option you had yesterday. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I'd be happy to help you at anytime.

 

Looking forward to your reply. Have a pleasant day ahead!

 

 

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