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Level 1

Employer Social Security Credit COVID-19

I have a client who uses an outside payroll service. Starting in April the outside payroll service deducted amounts on the employer side for this Social Security Credit. 


My question is what additional payroll expenses/liabilities do I need to set up in QB desktop for this credit.

I understand the credit is applied on the 941 quarterly return.

1 Comment
Joesem M
QuickBooks Team

Employer Social Security Credit COVID-19

Hello there, @thetaxlady.


You'll want to enter paychecks that you have issued the year before using the payroll service. The data you'll enter ensures correct year-to-date totals on your paychecks. If you are trying to enter year-to-date amounts for the current year, you can use the Payroll Setup window.


Here's how:


  1. Access the Payroll Setup Interview.
  2. Proceed to step 5: Year-to-Date Payrolls.
  3. Select Continue.
  4. Choose Yes if your company has issued paychecks this year. If there was no payroll click No and hit Continue.
  5. On the next screen, you have three choices: PaychecksTax Payments, and Non-Tax Payments. Hit Edit on Paychecks.
  6. In the Enter Paychecks by Employee window
  7. Click Finish Later to close the QuickBooks Payroll Setup window.


 For more information about entering historical payroll data, please click this article: Enter historical payroll data.


Also, if you need to enter payments that you've already made for taxes and other payroll liabilities from the beginning of the calendar year, you can refer to this article. Enter historical tax payments in QuickBooks Desktop Payroll.


If you have follow-up questions, don't hesitate to click the Reply button below. I'm always here ready to help. Take care always.


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