For first quarter 2021, QBO is calculating 50% of wages for the employer retention credit instead of 70%.

Hello there, @kdavid671.

Let me share some information about how QuickBooks calculates your employees wages for the employer retention credit.

The refundable Employee Retention Tax Credit is a refundable tax credit for up to 50% of qualified wages up to $10,000 of wages from March 13, 2020 to December 31, 2020. However, for the first two quarters of 2021, employers who qualify in 2021 (including employers who received a PPP loan) can now claim a credit against 70% of qualified wages paid through December 31, 2021. You can read through this article for additional insights: What is the Employee Retention Credit?

Currently, there's now update on when the new credit rate will be available in the system. Rest assured, it will be applied directly to your account.

Also, I'd recommend contacting our Payroll Support team so you'd be assisted in reviewing your payroll setup. Here's how to contact us:

1. Go to Help.
2. Tap Contact Us.
3. Enter Unable to set up payroll in the What can we help you with? field.
4. Click Let's talk.
5. Select Get a callback, Chat, or Call us.

Also, I've added these links that have more detailed information about the new Response Act:

• How to calculate the Employee Retention Credit 
• Employee Retention Tax Credit 

Just tag my name in case you have other concerns. Thank you and stay safe!