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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...?

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QuickBooks Team

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

Good day, @jacquithemaids.

 

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

 

If you have qualifying wages and didn’t include them on past paychecks, I'd suggest contacting our Payroll Support Team. They can check and help you changed the time off banks of your employees.

 

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. 

 

 

For more information about the employee pay types, you can refer to this helpful article: How to set up and track the Employee Retention Credit under the CARES Act

 

I've added these helpful articles. It provides an overview of how to change time off policy and FAQS about Employee Retention Credit:

 

If there's anything else I can help you with, please let me know in the comment section. I'll be always around ready to help.

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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. 

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QuickBooks Team

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

Good Morning, @jacquithemaids

 

To receive the best answer and explanation to your question, I recommend contacting our Customer Support Team. They'll be able to look further into your account to see why your employee's off time isn't accruing. Here's how to get in touch with them: 

 

  1. Go to the Help icon in the top right-hand corner. 
  2. Tap Contact Us
  3. Give a brief description of your issue and press Let's Talk
  4. Scroll down and choose to Get a Callback

 

It's that easy. If you have any other questions, please don't hesitate to ask. The Community is always here to have your back. Take care!

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