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jacquithemaids
Level 1

Is it possible to have employees' time off automatically accrue when paying them via the Employee Retention Tax Credit hours?

We have been paying employees via the Employee Retention Tax Credit Regular Hours/Overtime Hours so that the hours are properly tracked for the tax credit. Some employees have brought to my attention that their time off banks have not changed in several pay periods - since we started using that form of payment for them. Is it possible to make it so that their time off will automatically accrue (like when paid with regular hours)? Or will I need to manually calculate how much time off each employee has earned and manually adjust their time off banks every pay period...?
5 Comments 5
Pabz_L
QuickBooks Team

Is it possible to have employees' time off automatically accrue when paying them via the Employee Retention Tax Credit hours?

Thank you for posting here in the Community, @jacquithemaids.

 

Let me share some information about setting up Employee Retention Credit under the CARES Act.

 

With QuickBooks and Intuit Online Payroll, you can ensure your employees get paid if you are eligible for the provisions found under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. 

 

However, Employee Retention Credit can only apply to wages through hourly or overtime hours. Any additional wages earned wouldn't apply toward the credit. 

 

To make sure that this has been set up correctly, I recommend contacting our Payroll Support Team. They can check to help you with this concern.

 

Here’s how. 

 

  1. Click Help on the top menu.
  2. Tick Contact Us.
  3. Enter your payroll concern in the What can we help you with? field.
  4. Tap Let's talk.
  5. Select Start a chatGet a callback, or Get the number to connect with us. 

 

I'd like to link you to your similar post where my colleague answered and gave further information. Please check this link for your reference. Employee Retention Credit.

 

You can also use this article for more information about setting up and tracking Employee Retention Credit. How to set up and track the Employee Retention Credit under the Cares Act.

 

Please feel free to fill me in if you need further assistance. I am always here to help. Keep safe.

jacquithemaids
Level 1

Is it possible to have employees' time off automatically accrue when paying them via the Employee Retention Tax Credit hours?

Actually, the IRS website says if you have under 100 employees, ALL wages including pre-existing time off policy wages paid are eligible wages (https://www.irs.gov/newsroom/covid-19-related-employee-retention-credits-determining-qualified-wages... section 56). However, I was not referring to paying the wages under the ERTC -- I was referring to the accrual of time off, not use of it. My employees' time off is not accruing in their time off banks as they get paid now that I am using the ERTC hours format for paying them -- their time off bank on their paystubs have not changed for several weeks. 

Charies_M
Moderator

Is it possible to have employees' time off automatically accrue when paying them via the Employee Retention Tax Credit hours?

Hello there, jacquithemaids.

 

Thanks for adding clarifications to your concern. The system has detected a duplicate post similar to your issue about your employees' time off not accruing.

 

I'd like to inform you that one of my colleagues already responded to that. Let me route you to the said post by clicking this link

 

Keep me posted for additional questions or other concerns. I'd be more than happy to help. Wishing you the best of luck.

karl831
Level 1

Is it possible to have employees' time off automatically accrue when paying them via the Employee Retention Tax Credit hours?

the state of maine has enacted a new law starting 1/1/21.  employers now have to pay (paid time off) to employees at a rate of 1 hour for every 40 hours worked.  how do i do this in quickbooks so it calculates the time automaticly

 

 

Tori B
QuickBooks Team

Is it possible to have employees' time off automatically accrue when paying them via the Employee Retention Tax Credit hours?

Good morning, @karl831.

 

Thanks for following the thread. I'm happy to provide some insight into adding the new PTO rate in QuickBooks. 

 

When receiving new laws that affect the flow of your business, it can be a little frustrating adjusting to the change. But don't sweat. You can make this change in just a few simple clicks. To add the new PTO rate, you'd need to enter the PTO manually. When adding the PTO manually the first time, it will automatically set up for future pay. I've included the steps below to do this. 

 

  1. Go to the Gear Icon and choose Payroll Settings
  2. Click on Time off Policies.
  3. Hit Create under the Time off Policies section.
  4. Adjust Accrual Frequency, Hours earned per year and Maximum available hours.
  5. Tap on OK to save.

That's all there is to it! Check out Set up and track time off in payroll for more details about manually adding the PTO. 

 

Please let me know if you have any questions about this process. I want to ensure you receive the help you need every step of the way. As always, you can reach out to the Community at any time. Take care! 

 

 

 

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