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debbuxton
Level 1

Employee Retention Credit and Salaried Employee

I am trying to create a paycheck for a salaried employee and it says I am supposed to reduce the hours of salary, but not sure how I am supposed to calculate hours when the employee is a monthly salaried employee. I simply get a box for the Retention Credit that wants me to fill in hours. 

 

Any guidance anyone as the person I spoke to at support basically just kept repeating what I had found in the online help documents. 

 

Thanks,

Deb

6 Comments 6
RCV
QuickBooks Team
QuickBooks Team

Employee Retention Credit and Salaried Employee

We are exploring all options to support our customers through this difficult time, debbuxton.

 

For salaried employees, we'll need to reduce the hours of salary. To do this, add the new pay item hours and select preview. After selecting Create Paychecks, edit the checks to reduce the salary hours. Here's how to run your payroll using the pay types:

  1. Tick the Payday tab.
  2. If you have multiple pay schedules, choose the schedule you are paying.
  3. Enter hours in the corresponding fields. Reduce the hours of salary by adding the new pay item hours and tap preview. Then, edit the checks to reduce the salary hours after selecting Create Paychecks.
  4. Enter any other items you need to include.
  5. Click Create Paychecks.
  6. Review the paychecks, and then press Approve Paychecks.

To learn more about this one, see the How to set up and track the Employee Retention Credit under the CARES Act article. If you need further assistance, our Payroll Support Team can help you with this one. You may send a message via chat, call us at a time convenient to you, or we’ll get in touch with you instead. To ensure we address your concern, our representatives are available from 6:00 AM to 6:00 PM on weekdays and 6:00 AM - 3:00 PM on Saturdays, PST. See our support hours and types for more details about this one. Here's how to reach them: 

  1. Go to the Help menu at the upper right.
  2. Select Contact Us.
  3. Enter your concern.
  4. Click Let’s talk.
  5. Choose Get a callback
  6. Type in your contact info.
  7. Select Confirm my call.

Feel free to visit our Process payroll page for more insights about running and managing payroll in QuickBooks.

 

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Please reply to this post and I'll get back to you. Take care always.

debbuxton
Level 1

Employee Retention Credit and Salaried Employee

As I said before I could glean this same answer from the help section. 

 

What I am wondering is do I just pick an arbitrary number of hours for the Retention Credit Pay to equal the amount of salary? Also will the payroll service know when the IRS limit on wages paid, so only give the refund credit for those eligible wages or do I have to make sure and not go over the IRS limit of $10,000 in wages?

Angelyn_T
QuickBooks Team

Employee Retention Credit and Salaried Employee

Thank you for getting back, @debbuxton.

 

I can help you with recording your transactions accordingly.

 

When setting up an hourly type of item as suggested by RCV above, you can select the number of hours and rates that when multiplied it gets the total of the employee's salary. (Example: Salary=$100, Rate would be $10 and Hours is 10)

 

Moreover, you can manually check the wages to review the eligible employees.

 

To know more about tracking employee retention credit, you can open these articles:

 

 

You can also check out the topics from our help articles for more tips and resources while working with QuickBooks or payroll in the future. Here's the link: Find QuickBooks help articles, Community discussions with other QuickBooks users, video tutorials an....

 

Please let me know else I can help you with tracking employee's retention credit in QuickBooks Payroll. I'm always here to help. Keep safe!

misscecilySF
Level 3

Employee Retention Credit and Salaried Employee

This does not help. If you have a Salaried employee and try to reduce the number of hours by entering hours in the Employee Retention Credit box, the hours become added on to the salary, instead of reducing the salary. The ERC box does not adjust the proportionate salary in the way the sick or vacation boxes do.

 

There is currently no way to pay a salaried employee in QB payroll using the employee retention credit options that are offered. You need to change the method of pay from salary to hourly, or this just will not work, period.

Plus, be aware that when you use the ERC hours to pay an employee,"Employee Retention Credit Regular Hours" will print out on their pay stub so they will be confused as to why they are being paid this weird line item.

Camarillo315
Level 1

Employee Retention Credit and Salaried Employee

I agree with this. Did they help you on how to do this please??

Radie
Level 1

Employee Retention Credit and Salaried Employee

What I did was contact customer service and they manually did it for me. I still don't know how they did it.

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