I have a client that opened a business in 2021 and qualifies for the refundable employee retention credit. How do I enter this credit on the Q4 Form 941 in QuickBooks Online?

Let me provide some insights about entering the refundable employee retention credit, Charles.

If you’re not a Recovery Startup Business, any credits you took on Federal tax payments for paychecks dated on or after October 1, must be paid to the IRS no later than the following dates.

• Semi-weekly depositors: January 5, 2022 
• Monthly depositors: January 15, 2022
• If your credit amount is $100,000 or more (with or without any additional taxes also due): January 3, 2022.

These are based on how often you’re required to pay your regular Federal taxes. If your payroll service is with Automate taxes and forms ON, we’ll pay this for you by the due dates above. 

If not, here's how to pay it.

1. Go to Taxes, then select Payroll Tax. 
2. Select Payments. 
3. Look for the ERC amount due. 
4. Once you have the amount due, sign in to EFTPS.gov to make your payment. 
5. Go to Taxes, then select Payroll Tax. 
6. Select Payments. 
7. From the ERC amount due, select Mark as paid. 
8. Select one of the following:
   • Yes, mark paid if you don’t want to record it in your QuickBooks ledger. 
   • No, record manually if you want to record it in your QuickBooks ledger.

If you’re considered a Recovery Startup Business, you don’t have to pay back any credits you took on Federal tax payments for paychecks dated on or after October 1.  Simply contact our Live Support Team for help with these credits.

I'm adding these links for additional information about the process: Understand the recent expiration of the Employee Retention Credit.

You can leave a comment below if you have follow-up questions about recording the refundable employee retention credit. It's my pleasure to help you always.