How do we file for the Employee Retention Credit?

Welcome aboard in the Community space, @gale8.

I’ll share some information and guidelines on how you can file for the Employee retention Credit in QuickBooks Online (QBO).

There are some things you must complete before you can claim an employee retention credit. Here is what to do.

1. Make sure you qualify for the credit.
2. Set up your payroll to accept and track the credit
3. Employees who fall into one of the following categories won't make enough money to qualify for the maximum retention credit:

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

    4.   Select your payroll to get started:

Step 1: Set up your employees with the pay types

1. Go to the Payroll menu, then select Employee.
2. Select the employee you’d like to add paid leave too.
3. In the How much do I pay an employee section, select the edit icon to add more payment 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.

Also, since you are a full service payroll, I recommend you contact our Payroll Support Team. That way, they can further assist you with filing 94X forms in QuickBooks Online.

Please refer to this article on how you can get in touch with them along with their support hours: Contact Payroll Support

Feel free to return to our Community site if you have any more queries. Stay safe!

Thank you. We qualify for the credit. The question is that QB Staff do our entire payroll filing. How do I get the 941X to be filed?

I pay a ton to QB online and the best QB payroll service I can get. I own a restaurant and used a company to file amended 941s and I received refunds for three quarters in 2021 under the new business start up provisions. It was great. Refunds plus  interest. Not so great. They put the total of the checks as "other income" on my P&L.

I am a Certified Financial Planner and an income tax accountant for 52 years. Yes, I'm old. But why does not Intuit owned Lacerte and Pro Series folks who have lots of income tax knowledge share with the bookkeeping "teams" what is and is not income to a business. They say they don't know income taxes.

But P&L components of income should be the study of these folks. I'm not the only one who is griping I'm sure. Why do I have to upload a bunch of stuff to defend the tax law and teach these "young" people why the ERC is not other income but the interest is? I'm looking for another company that can do my books, make payroll and not argue with me about what constitutes other income on the P&L for my partnership.

I spend several hours the first year explaining to a newbie what cost of goods sold components were in a restaurant. She said she was not trained on that yet. Why put her as a bookkeeper for a restaurant than? Yuk!

2 1/2 years in and 5 bookkeepers later............ Attached is the Q&A from IRS directing the taxpayer to amend the tax returns for the years refunds were received. Credits and refunds are not income!