Question

Employee Retention Credit Worksheet 1

Forum|Forum|5 years ago
October 2, 2020
7 replies
0 views

When will this form become available as part of the 941, I have clients who can qualify for the credit but they did not take a Form 7200 advance of the credit. I need access to worksheet 1 to correctly account for this on their 941 for the 3rd quarter.

QuickBooks Desktop Payroll

john-pero

Newest payroll update for desktop payroll which includes accommodation for the optional employee ss deferral also includes an updated 941. Run payroll update and then check out the form

S

Stan99spAuthor

Thank you but I need it for the employee retention tax credit and not to defer the Social Security tax, they have a spot to enter the Form 7200 advances but the client did not take any. We are trying to take the credit on the 941 form which requires a worksheet 1.

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MirriamM

Hello again, @Stan99sp.

Form 941 Worksheet 1 is designed to accompany the newly revised Form 941 for the second quarter of 2020 and beyond. Thus, any employer who files the Quarterly Employment Tax Form to the IRS under CARES Act and Employees Retention Credit should use this Worksheet.

To make sure the Worksheet 1 will populate when opening Form 941, you should claim a credit under the Family First Coronavirus Response Act (FFCRA).

To learn more about the calculation of Employee Retention Credit. See this resource from the US Department of Treasury about the Employee Retention Credit:

Read through also the IRS topics about how Employee Retention Credit (ERC) works: COVID-19-Related Employee Retention Credits: How to Claim the Employee Retention Credit FAQs.

If you have further questions, let me know by commenting below. I'm always here for you. Have a great day.

Angelyn_T

Thank you for joining the thread, @RHBird.

I'm here to share some information about the Worksheet 1 and help ensure it'll populate when opening Form 941.

The Credit for Sick & Family Leave Wages and Employee Retention Credit (Worksheet1) will show up if you've claimed a credit under the Family First Coronavirus Response Act (FFCRA). Also, if these payroll items are set up correctly including their tax tracking type in QuickBooks Desktop. You can check out this article as your reference in verifying your payroll items: How to track paid leave and sick time for the coronavirus.

You may also reach out to our Customer Support Team so they can take a further look at your account with their tools.

Here's how:

Click on QuickBooks Desktop Help from the Help menu.
Tap Contact Us.
Type in your question and press Continue.
Scroll down and choose to Get a callback.

Please let me know in the comment section if you have any follow-up questions or concerns. I'm always right here to help get the form available. Keep safe!

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SHANNON R

We are having the same issue. We do not want to use the Family First benefits as that does not apply to our small business clients. We only want to manual adjust the Form 941 for retention credits. We have already prepared the payrolls. Is there a way to manually override the auto population of the Form 941? We only need to access the Worksheet 1 as we did in Q2/2020.

RenjolynC

I'll share some information about the form, SHANNON R.

If you're able to generate the 941 form, you can right-click on the number and select override. Before doing so, please consult with your accountant or payroll tax advisor. Once done, the Worksheet 1 will be generated at the end of your 941 form.

On the other hand, if the override option is grayed out and you're unable to get the worksheet, please reach out to our Customer Care Team for further assistance. Before doing so, please check out our support hours here.

In your QuickBooks Desktop program, go to Help > QuickBooks Desktop Help.
In the Have a Question window, click the Contact Us link at the bottom.
From the Contact Us page, select any topics.
Under Here's how to connect with a QuickBooks expert section, click the Start a Message or Get Phone Number button.

Feel free to leave a reply if you have other concerns regarding QuickBooks Desktop Payroll. I'm here to lend a hand. Thanks.

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IPM2511

Where can I find the worksheet 1 for the employee retention credit

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MirriamM

Thanks for joining the thread, @IPM2511.

To have the Worksheet 1 populate when opening Form 941, you should claim a credit under the Family First Coronavirus Response Act (FFCRA). Also, ensure if these payroll items are set up correctly, including their tax tracking type in the system.

To verify payroll items, check out this article: How to track paid leave and sick time for the coronavirus.

You may also see below links from the US Department of Treasury to know more about the Employee Retention Credit:

Let me know in the comment section if you have further questions. I'm always here for you. Have a nice day.

S

slowbooksprsucks

So all the BS from intuit is a waste of time. The easy solution I found was to set up the retention credit addition like they say. Then go to 1 single paycheck in the quarter you are working on and add it for $.01, reduce your wage/salary by $.01 so the net paycheck remains the same and all other payroll tracking (work comp. etc.) is unaffected. When you do the 941 the worksheet 1 pops up (with the $.01) and you override line 3a and the rest of the form populates. You'll need to figure out the correct wages to use and whether they qualify based on gross income reduction outside of slow books. One penny on one paycheck and it works just fine, how hard was that?

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odko95

Thanks for your 1-check work-around! We had to use a NEGATIVE amount of $(.01) in our Regular Pay in the top section of Paycheck Detail (Rate of $.01 with Hours of minus 1). Then we put a POSITIVE amount of $.01 in Other Additions and Deductions section (I think?) (Rate of $.01 with Quantity of 1) using the Payroll Item we had created of "CARES Retention CR -EE". Then in looking at a Payroll Summary report we could see that the Regular Pay was a penny down and the CARES Retention CR -EE was at a penny.

Then the Form 941 gave us a Worksheet 1 showing the penny which we were able to override to the correct amount of our Qualified Wages.

Unfortunately our Form 941 Schedule B was then negatively affected by the Employee Retention Tax Credit (ERTC), since that page is meant to show our Liability amounts throughout the quarter, not our payments. QuickBooks just deducted our Employer Social Security amount for the whole quarter from the first few of our 941 FICA liabilities' amounts. So we overrode all of the Schedule B amounts to accurately show the 941 FICA liabilities without the Employer Social Security portion.

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treenichols

There ABSOLUTELY needs to be an override feature for the ERTC lines. I have done everything I can and followed these instructions both from the QB and this forum but can't get any overrides or a worksheet to happen. How difficult can this be and why is it not offered? QB please do something about this as I'm super frustrated that being able to use your software is the hardest part of filing my tax returns.

V

Victoria19

THANK YOU for posting this work-around! It worked perfectly. Really appreciate it.

Victoria

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dso0216

I believe I know why the worksheet 1 of 941 won't populate. It is for the 4th quarter and all my clients but 1 have backdated credits which the IRS stated could be added to the 4th qtr 2020 since too late to file form 7200. However, since there is no override on QB 941 the previous quarter amounts can't be added. I guess the alternative is to paper file OR wait and file a 941x later. Was trying to avoid the 941 X as those can be a royal pain and I dislike to paper mail anything. Also, 941X adjustments take awhile to complete so the clients will need to wait much longer for the credit refund to be processed.

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reliablemichele

I've just spent 3 hours on the phone with Intuit with them trying to set up all sorts of stuff in my payroll but still can't get it to work to automatically calculate the ERTC. They can't even make it work properly. It would be SOOOOOOOO much easier if I could just override line 13d on page 2 of the 941. Even if they figure out how to get my payroll set up for ERTC calculations in the future how do I fix the paychecks already done in 2021? The absolute easiest way to handle this is a simple one line entry on the quarterly 941 - WHY CAN'T WE OVERRIDE THIS?

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Catherine_B

Let's ensure that you set up the items correctly, reliablemichele.

I'll show you how to review your payroll items:

Go to the Employees menu.
Choose Manage Payroll Items.
Double-click on the first retention credit payroll item.
Look into the tax tracking type.

Feel free to use this link that will further guide you in checking your payroll items and set them up correctly: How to set up and track the Employee Retention Credit under the CARES Act.

After you've checked the payroll items needed in tracking employee credits, you can edit or delete and recreate the existing paychecks so the updates will automatically flow to the payroll forms.

I'd still highly suggest reaching out to our Phone Support Team to help you with correcting created paychecks.

Keep me posted on how this works. Take care!

LarryHD2

I use QB Enhanced Payroll on Desktop

This is the method I used for revising my 941 for Q1 of 2021. Note that for Q's that have already had 941's submitted you will need to complete a 941x and submit by mail.

I had not done any payroll using the ERC payroll item because we didn't qualify due to having a PPP loan. Since the law has changed we are now eligible. When I went to file our 941 for Q1 of 2021 there is no way to edit any of the numbers and worksheet 1 is not even available.

After spending a LONG time on the phone with support, they were telling me there is no way to edit the paychecks because the direct deposits had already been completed, and there is no way to edit the 941 or worksheet 1 because no ERC items had been used.

So.... I created a single paycheck (for later deletion) for someone in Q1 with $1000 of ERC (using the setup QB has outlined). I did not submit or otherwise process this payroll. I made sure the paycheck was for a period in Q1 and dated within Q1. THEN when I run the 941 all of the items I need to revise became so I could override them, and worksheet 1 was available and I could edit the numbers I needed to. I can then just delete the paycheck after submitting the 941.

Be sure you run and print (do not submit) a 941 prior to creating the fake paycheck so you know what the numbers are.

I have gotten to the point where I can submit the 941 but I haven't done so as I'm awaiting final review from my CPA, but I'm assuming that this method will work.

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