How do you apply the Employee Retention Credit for a salaried employee?

Greetings, @jacobi-schall.

I can guide you how to apply the Employee Retention Credit to your employees. Before we start though, can you share with me the instructions you’ve read? Additional details are appreciated.

Nonetheless, to apply the credit for your salaried employee, you’ll need to set them with the pay types so you can apply it to them. Here’s how:

1. Go to Workers or Payroll menu and select Employee.
2. Select the employee you’d like to add paid leave to.
3. In the How much do I pay an employee section, click the Edit (pencil) icon to add more pay types.
4. Under the CARES Act section, select the pay types that apply to you: CARES Act Regular and CARES Act Overtime.
5. Select and enter any Employer Paid Health Insurance Premium amount to be tracked on each check.
6. Simply click Done.

Then run payroll using the pay types:

1. Click Run Payroll from the Overview screen.
2. Select the schedule you’re paying.
3. Enter hours in the corresponding fields (For regular hours in the Employee Retention Credit Regular).
4. Add or enter any items you need to include.
5. Select Preview Payroll.
6. Review the paycheck and click Submit Payroll when ready.

You can also check this link to learn more about how to track the Employee Retention Credit in your QuickBooks Online (QBO) account.

I want to make sure you’re in compliance with the federal tax regulations. I got you this article for reference: Internal Revenue Service Payroll Tax Compliance.

Let me know if there’s anything else you need help with by leaving a reply. I’m only a few clicks away from you. 

How do I enter data for a salaried employee?

I'd be glad to walk you through the process of entering your salaried employee's data in QuickBooks Online, bw.

You can use the Enter prior pay details to record the previous payroll data for your salaried employee.

However, please be reminded that this option only available for the current calendar year and there are no paychecks created for the employee yet.

Here's how:

1. Click Workers or Payroll in the left panel and choose Employees.
2. Select the employee's name to open the information, then Enter prior pay details. 
3. To help you set up your payroll account, there are a few questions you need to answer:

   

   1.  Have you paid W-2 employees in the current year?

      (See Have you paid W-2 employees in the current year for more details.)

      • Yes, I've paid employees in 2018: Select this option if you want to record the payrolls you have so far in the current calendar year.
      • No, have not paid employees in 2018: Select this option if you are a new employer who doesn't have any payrolls to record yet.
   2. When will you first run payroll with QuickBooks Online Payroll?
      • Choose a date. Dates given vary on the signup date. In the example image, the sign-up date is within quarter 3.
   3. How did you pay your employees?
      • Paychecks (direct deposit or check, with taxes taken out): In entering prior payroll, you'd need to enter each total amount per tax item.
      • Lump sum payments (cash or check, with no taxes taken out): If you don't have the breakdown of each tax per employee, and only have the gross amount in the record, select this option.

For the complete details about this process, you can go through this article: Set up a prior payroll.

On the other hand, if you already have paychecks created, I highly suggest contacting our Payroll Support team. They have the tools that can help you enter the data.

Please be reminded that our Support Team is available from 6:00 AM until 6:00 PM from Mondays to Fridays. Here's how to contact us:

1. Click the Help (?) icon.

2. Choose Contact Us.

3. Enter a  brief description of your situation in the What can we help you with? area, then click Let's talk.

4. You'll be presented with a few options for connecting with Intuit. Select Get a call.

Additionally, for your payroll reference: Payroll 101. It contains more information about the different types of compensation as well as on what are the types of federal forms you need to file. Also, this will provide you a sample breakdown of a paycheck.

Please know that you're always welcome to post if you have any other questions about entering other data or any QuickBooks related concerns. Wishing you and your business continued success.