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amyguras
Level 1

How do I edit for 941 in quickbooks online to add employee rentention on the worksheet for qualified payroll expenses?

 
1 Comment 1
Joesem M
Moderator

How do I edit for 941 in quickbooks online to add employee rentention on the worksheet for qualified payroll expenses?

Hello there, @amyguras.

 

We're unable to edit the 941 in QuickBooks as this will automatically populate the information. Just make sure you've set up your loan correctly. Once done, add the employee retention into the worksheet. Please follow the steps below:

 

  1. Go to the Gear ⚙ icon, and select Chart of Accounts.
  2. Click the New button.
  3. From the Account Type ▼ drop-down menu, select Long Term Liabilities.
  4. If you plan to pay off the loan by the end of the current fiscal year, select Other Current Liabilities instead.
  5. From the Detail Type ▼ drop-down list, select Notes Payable.
  6. Click the drop-down arrow in the When do you want to start tracking your finances from this account in QuickBooks box, then select Other.
  7. Enter the loan amount in the What was your account's balance box.
  8. Click Save and Close.

 

You can then follow Step 2 and 3 in this article on how to set up a loan in QuickBooks Online. This will track the money you've to spend and record the loan payment.

 

Once done, you can now set up and run payroll to track Employee retention in QuickBooks. 

 

  1. Select on Run Payroll from the Overview screen.
  2. Choose the schedule you are paying.
  3. Enter hours in the corresponding fields:
  • For regular hours in the Employee Retention Credit Regular.
  • For any overtime hours in the Employee Retention Credit Overtime.
  • If applicable, enter the Employer Health Insurance Premium.
  • If your employee is salaried, select the salary amount shown to reduce the hours by the number of hours you are paying your employee with the Employee Retention pay items.
  • If your employee is commission only, you will need to convert their pay to an hourly rate.

  4. Enter any other items you need to include.

  5. Select Preview Payroll.

  6. Review the paychecks, and then select Submit Payroll.

 

You can read through this article to learn more: How to set up and track the Employee Retention Credit under the CARES Act?.

 

I've also added this article that explains the corresponding information of each line in the report: How QuickBooks Populates The 941.

 

For other payroll-related concerns, you can click this link. It provides self-help articles that will guide you with your future task in QuickBooks.

 

Just leave a reply if you have other questions about QuickBooks Online. I'll be glad to help. Have a good one.

 

 

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