In preparing to do our quarterly 941 I noticed Quickbooks Desktop doesn't allow me to edit lines 11c or 21. Reading the posts in this discussion group, I found I was supposed to set up these items in my payroll items and use them each time I created checks in the quarter. I didn't do this but I still want to used the credit(s) from the last two quarters. I have downloaded the Worksheet 1 from the IRS website so I know the amount of my credit outside of the Quickbooks system and I could just file the 941 manually, however, I know this will mess up my next quarter when I do have the credit posting on the checks I process through QB. Any advice on how to handle this?
Depending on your payroll service you could, if able, edit each and every issued paycheck to reflect the credit payroll items or instead perform payroll liability adjustments changing regular pay for credit pay. Possibly journal entries might do the same.
If you received (and used) a PPP loan you are prohibited from receiving retention credits.
Thanks for your reply. No we did not qualify for the PPP loans so we are able to use the retention credits instead. I attempted to do as you suggested and edit the checks that were previously issued. QB desktop enhance payroll (which is what we use) won't let me do this. It tells me I can't do this here and I need to go to the employee tab to set it up, which I do but it doesn't show up for previously issued checks, only current & future checks. I will try the liability account adjustment or a journal entry.