How do I claim the employee retention credit on wages already paid?

Glad to see you in the Community, loriwhite201.

I'd love to share ideas about retention credit.

Before you can take an employee retention credit, you need to do a few things. Here's what to do.

1. Make sure you qualify for the credit.
2. Set up your payroll to accept and track the credit

Qualifying wages that weren't included on past paychecks should be reported to us before July 1st, 2020.

Employees who fall into one of the categories below will not earn enough to get the maximum allowable retention credit:

• Full-time employees who make less than $10/hour
• Part-time employees

      3.Select your payroll to get started:

Step 1: Set up your employees with the pay types

1. Go to Payroll menu, then select Employee.
2. Select the employee you’d like to add paid leave to.
3. In the How much do I pay an employee section, select the edit icon to add more pay types.
4. Under the CARES Act section, select the pay types that apply to you: CARES Act Regular and CARES Act Overtime.
5. If applicable, select and enter any Employer Paid Health Insurance Premium amount to be tracked on each check.
6. Select Done.

Step 2: Run your payroll using the pay types

1. Select Run Payroll from the Overview screen.
2. If you have multiple pay schedules select the schedule you are paying.
3. Enter 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 applicable, enter in the Employer Health Insurance Premium.
   • If your employee is salaried, select 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 will need to convert their pay to an hourly rate.
4. Enter any other items you need to include.
5. Select Preview Payroll.
6. Review the paychecks, and then select Submit Payroll.

You can read through this article about the  Coronavirus Aid, Relief, and Economic Security (CARES) Act: How the Coronavirus Aid, Relief, and Economic Security (CARES) Act affects your payroll

If you have further questions or concerns, feel free to reach back to our Community site. Stay safe.

Hey there, @loriwhite201.

I want to share some clarifications and get you pointed in the right direction so you can claim the employee retention credit that was paid.

The Employee Retention Credit is a fully refundable tax credit for employers equal to 50 percent of qualified wages (including allowable qualified health plan expenses) that Eligible Employers pay their employees. This applies to qualified wages paid after March 12, 2020, and before January 1, 2021.

Therefore, an Eligible Employer may be able to claim the credit for qualified wages paid as early as March 13, 2020.

To help you in claiming the credit that was paid, I suggest contacting our Customer Care Team. This way, you'll be guided in correcting your 2020 paychecks and help you claim the employee retention credit. Thus, you will no longer delete paychecks that have been processed.

To reach them:

1. Click on Help at the top menu bar.
2. Hit on the Contact Us button.
3. Enter a brief description of the issue in the What can we help you with? box.
4. Press on Let's talk.
5. Select on Get a callback.
6. Key in your contact details, then tap on Confirm my call.

For more information on how the Coronavirus Aid, Relief, and Economic Security (CARES) Act affects your payroll, I'll add these articles your reference:

• What you need to know about the Families First Coronavirus Response Act.
• FAQs: Employee Retention Credit under the CARES Act.

Please let me know how it goes or if you have any other questions or concerns. I want to make sure everything is taken care of for you. Have a good one!