Claim the ERC in the 941 at the processing payroll

I'm here to help you through in adding Employee Retention Credit to QuickBooks Online, @kinardrm.

You can set up your employees with the program's pay types in order to track the Employee Retention Credit for 2021. Here's how you can do it:

1. Open the Payroll menu.
2. Go to the Employee tab, and pick the employee you want to add paid leave to.
3. Navigate to the How much do I pay an employee section, and click the edit icon to enter more pay types.
4. In the CARES Act section, choose the pay types that apply to you: CARES Act Regular and CARES Act Overtime.
5. If needed, choose and type in any Employer Paid Health Insurance Premium amount to be tracked on each check.
6. Click on Done.

After that, I suggest running payroll using the pay types:

1. Go to the Overview menu and click on Run Payroll.
2. If you have multiple pay schedules choose the schedule you are paying.
3. Fill in hours in the corresponding fields:
   • For regular hours in the Employee Retention Credit Regular.
   • For any overtime hours in the Employee Retention Credit Overtime.
   • If needed, type in the Employer Health Insurance Premium.
   • If your employee is salaried, choose the salary amount shown to reduce the hours by the number of hours you are paying your employee with the Employee Retention pay items.
   • If your employee is commission only, you'll need to convert their pay to an hourly rate.
4. Type in any other items you need to enter.
5. Click on Preview Payroll.
6. Review the paychecks, and then click on Submit Payroll.

Check out this module to get some tips about handling payroll taxes: Pay and file payroll taxes and forms in Online Payroll.

Fill me in if you have other payroll concerns. We're also available to answer queries about QuickBooks in general. Keep safe!