All wages paid under employee retention credit setup are not accruing sick time. How can I correct this

Hello, @ljl01830. 

The sick time won’t accrue if you won’t add the payroll item under Other Payroll Items. You must clear the Earnings item and then add the payroll item under Other Payroll Items when you run a regular payroll.

Here’s how:

1. Go to the Employees menu and choose Pay Employees and choose the appropriate schedule in the Create Paychecks section, and select Start schedule Payroll.
2. Set all the information needed and put a check mark next to the employee and select Open Paycheck Detail.
3. Under Earnings remove the amount listed under Rate. Under Other Payroll Items, in the Item Name drop-down select CARES Retention Credit - Emp. or the name used during setup. Enter the employee’s hourly rate and quantity of hours.
4. Check: In the Employee Summary you should see “Regular” wages (salary or hourly) set to 0, with wages listed under the name entered for the credit during setup.
5. Select Save Next to go to the next employee, or select Save Close to go back to the Enter Payroll Information window.
6. Click on Continue.
7. Check the amounts for each employee, and select Create Paychecks.

Check this article for more information: How to set up and track the Employee Retention Credit under the CARES Act.

Let me know if there's anything that you need. I'm always here to help. Have a wonderful day!