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Level 1

Employee Retention Credit - W-2s are not correct

Wages paid under the CARES Act Employee Retention Credit provisions were correctly recorded as such in QuickBooks.   W-2s are not correct.


The Retention Credit amounts paid to employees are correctly being included in the W-2 totals shown in Box 3 (Social Security Wages), but are not being included in Box 1 (Wages/tips/other compensation).


Will Intuit be issuing a fix for this? or will we need to manually prepare W-2s?  What about other year-end reporting -- 940 does not appear to be correct, either.


5 Comments 5

Employee Retention Credit - W-2s are not correct

Thanks for taking the time to post your issue here, LoisBaker. I'm here to help you redirect to the right support available in taking care of this type of situation.


I would recommend reaching out to our Payroll Support Team. They have the tools to verify your account in a private setting to do a screen-sharing session, to check how you've created and used the payroll items.


Here's how to contact them:


  1. Go to the Help menu once you open QuickBooks.
  2. Click QuickBooks Desktop Help or press F1 on your keyboard.
  3. Select Contact us button. 
  4. Enter "W-2s are incorrect" in the Tell us more about your question box. 
  5. Hit Search. Select Start a message.

For additional reference about Employee Retention Credit, please read these following resources:


You can tag me in a comment if you have any additional details on this issue. I'll be sure to help you out.

Level 1

Employee Retention Credit - W-2s are not correct

4 Weeks later and the FORM 940 is STILL NOT CORRECT.


I tried calling payroll support.  They gave me a work around (override numbers) but the issue is with the set up of the payroll item"CARES Retention emp" . Support also said I was the first person to tell them there is an issue


I can't believe I was the first.  I don't believe Quickbooks is sending out incorrect 940's on QB Payroll Online.  WHEN ARE YOU GOING TO FIX THIS?  Bad Form Intuit. Horrible customer service

Level 2

Employee Retention Credit - W-2s are not correct



Can you explain with a little more detail what is incorrect?  I want to check my W2's and sure they are not incorrect.



Level 1

Employee Retention Credit - W-2s are not correct

Did you get a response from Quickbooks about how to correct the W-2's?   I raised this as an issue back in April when we setup the CARES Employee Retention payroll item.  They didn't do anything about it.  I called several times and no one could tell me if the W-2 would be fixed for these wages to be in Box 1.  I have a difficult time getting someone to speak with from the Payroll Support team.  Please let me know if you are aware of how to fix this.



Level 1

Employee Retention Credit - W-2s are not correct

I just checked the W-2's again and I see it is fixed.  thank you.

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