This is a huge problem. It is being corrected? I'm paying for a service to make filing returns easier. If I have to print my own forms and complete them outside of QuickBooks, your service isn't working.
Worksheet 1 has to be a fillable Form and if the numbers are pulled from payroll, there needs to be an override capability. That today is the filing deadline and this isn't corrected is unacceptable.
Hi - I am going to have the same problem with the 941 and didn't set up anything in QB desktop payroll to track the sick/family leave wages. I went to the IRS website to download worksheet 1 and wasn't able to find it. Can you please send the link to me?
Problem is their programmers may think the credit is a function of Payroll, but that is just the side-product in the calculation. Eligibility is based on other things like 50% drop in revenues. They could use a check the box approach that would open up line 11c and/or part3 , line 21, which then could make Worksheet 3 fillable. For now they just need to enable the overrides and make a worksheet 1 fillable. But no one seems to understand or even be listening!
How did you set up your payroll wage item?
I tracked my Qualified sick leave wages separately and now attempting to complete my 941 in Quickbooks. When I input the wages on the interview sheet They erroneously go to Part 3 line 19 and I am unable to override Part 3 line 13c. Is there a work around?
Thanks for joining us in this thread, Worksheet 1.
Did you manually put in the numbers in the Credit for Sick Leave and Family Leave Wages section of the Interview Sheet? Lines 13 c and d reports the amount entered in form Worksheet 1. More detail about this are discussed here: How QuickBooks Populates The 941.
You'll need to set up the payroll item correctly in QuickBooks. Then, enter a prior payroll adjustment to report the qualified sick leave wages in the correct lines of the form. Just make sure to use last year's date when making the prior payroll entry.
Let me share these articles with you that will serve as your guide:
Once done, go back to the Form 941 and check if the amounts are reported under the correct lines.
Let me know if you have follow-up questions. I'll jump right back to help you again.
Quickbooks should allow an override on these ERC numbers. I am not going to re-enter a whole quarter of payroll.
If I make an adjustment and add the qualified sick leave wages will it let me decrease the wages originally entered?
Hello there, @usarenee.
You're able to decrease the wages you originally entered in QuickBooks Desktop (QBDT) by making an adjustment and adding the qualified sick leave. However, you'll also need to do a wage base adjustment to your payroll taxes to complete the process and make sure your data is accurate.
After creating the necessary adjustments, pull up Form 941 to check that the amounts are reported correctly under the correct lines. To learn how QBDT populates the lines on the form, you can refer to this article: How QuickBooks populates the 941.
Also, I'd recommend pulling up the Payroll Summary report. This way, you're able to verify that the adjustment is applied accordingly. Just go to the Reports menu, and select the Employees & Payroll option.
Let me know in the comments below if you have other payroll concerns and managing wages in QuickBooks. I'm just around to help. Take care always.
Why don't you simply make Worksheet 1 available for override entry? Then you simply do the same with the applicable 941 lines?
But all I hear from you Qbooks experts is you telling us your way to do something instead of the simple practical way.
The programmers at ProSeries, your other major accounting/tax software provider are Way Smarter than you people!
At least you weren't hung up on. Twice I contacted them and twice I was cut off when they appeared to be stumped and needed to research further. We should be issued refunds for non-working software. Money talks.
I need Worksheet 1 so I may revise 941 for 1st and 2nd qt 2020 due to Employee Retention Credit now available. How do I access Worksheet 1, or is it not yet available.
The Credit for Sick & Family Leave Wages and Employee Retention Credit (Worksheet1) is designed to accompany the newly revised Form 941 for the second quarter of 2020 and beyond. Any employer who files the Quarterly Employment Tax Form to the IRS under CARES Act and Employees Retention Credit should use this Worksheet.
Worksheet1 show up when opening Form 941 once you've claimed a credit under the Family First Coronavirus Response Act (FFCRA). Any employer who files the Quarterly Employment Tax Form to the IRS under CARES Act and Employees Retention Credit should use this Worksheet.
On the other hand, you can manually adjust your Form 941 for retention credits by overriding the amount. Before doing so, I recommend consulting with your accountant or payroll tax advisor for additional guidance. Once done, Worksheet 1 will be generated at the end of your 941 forms.
You may also reach out to our Customer Support Team so they can take a further look at your account with their tools.
Lastly, I'm adding this link for more hints about preparing your payroll forms: Learn how to prepare and print Form 941, Schedule B, and Form 940.
If you have any other questions about Form 941 and Worksheet1, please let me know by adding a comment below. I'm more than happy to help. Have a good one!
Exactly how do you override the employee retention credit lines of the 941? All mine are greyed out. With the law change, I have clients that are now eligible for this credit but don't have the payroll item changes. During tax season and with all the tax law changes, I am not going back and reentering payrolls. This issue has been going on since last June. WHY has QB's not made the overrides available on the 941? I got the worksheet and fill it out manually but then also have to do a manual 941. QB's has always mentioned that they are here to make sure taxes and forms are filed correctly. At least that is what they always say when they increase prices.
Currently, we're unable to override it. We need to make sure to properly set up and track the Employee Retention Credit so it'll flow automatically on the employee retention credit lines on 941. If you need help on how to do it, please check this link: How to set up and track the Employee Retention Credit under the CARES Act.
Then, you'll need to correct the payroll entries. You can read through this article to learn more: How QuickBooks Populates The 941?
Get back to me anytime if you have any more questions I can help. Take care!
I'm also trying to go back and file 941X to amend last year's 2nd Qtr 2020 form 941 to claim the ERC, since there's now guidance saying you can do that in addition to having a PPP loan. (Not double counting the wages, of course.) I have spent SO MANY HOURS trying to figure out how to do this! From what I gather, I should completely bail out on trying to do this through QuickBooks and just do it manually. Is this what you did? If so, could you share what forms you filled out & how you went about it? Every IRS web page I go to has a banner saying "This Page is Not Current" and I have so many tabs open and pages printed now, it's a nightmare. I also can't seem to find Worksheet 1 from 2020 (with 50% credit) and the Worksheet 1 from 2021 has 70% credit so I don't want that one. I'm assuming I need to redo the entire 2nd Qtr 2020 form 941, with Worksheet 1 version 2020, and then do the 941X for that quarter. Any help or guidance would be greatly appreciated, thanks!!
I'm not going back and changing last year's payroll in QuickBooks. Last year is done. I already spent too many hours figuring out how to set up FFCRA wage types and taking a credit on 3rd Qtr 2020 for that last year.
Let me route you to the best support available to address this as soon as possible. We have our dedicated Paycheck Protection Program (PPP) support team who are specially trained in handling this kind of situation.
You can contact them by navigating the PPP Center inside your product and select Live Chat.
Here's also some articles to learn more about the PPP loan in QuickBooks, see below links:
Additionally, you can visit our Microsite for the latest news and information: https://quickbooks.intuit.com/small-business/coronavirus/paycheck-protection-program/.
If you have any other questions, feel free to reach back out. I'll be right here to assist you. Have a nice day!
Also the retroactive provisions of amendments to the Cares Act and ARPA of 2021 make changes that compel employers to reconsider their eligibility to the ERTC.
Come on QuickBooks! Give us a fillable Worksheet 1 to populate the applicable lines of the 2021 941.
Eagle River, Alaska
I had this issue and called support. The order in which the additions are listed matters. Delete all additions, list the sick pay first, then add back the additions. This will apply 401k to the sick pay.
i am a reporting agent using desktop - worksheet 1 is not populating step 1 - step 2 is not populating 2e using the figure from step 1 1n. i am also not able to override the field. Help!
Hi there, rdittman.
Welcome to the QuickBooks Community. I'll ensure to share details about 941 Worksheets and how it works in QuickBooks Desktop.
If you have the FFCRA items calculate on the paychecks and you are referring to sick and family wages, worksheet 1 or 2 will not generate in the system once this wasn't included in setting up your payroll. That said, I suggest checking the guidelines for ERC or check with IRS on who's eligible for ERC. This is because when setting up the Employee Retention Credit in your payroll, you need to make sure you qualify for the credit. The size of your workforce, the structure of your business, and the reason why your business may or may not be closed all effect whether you can take this credit.
Once you've concluded you are eligible to accept the credit, you'll have to first set up your payroll to accept and track the credit. That said, the Credit for Sick & Family Leave Wages and Employee Retention Credit will show up if you've claimed a credit under the Family First Coronavirus Response Act (FFCRA). Also, if these payroll items are set up correctly including their tax tracking type in QuickBooks Desktop. You can check out this article as your reference in verifying your payroll items: How to track paid leave and sick time for the coronavirus.
Since the Employee Retention Tax Credit covers regular time, overtime, and company contributions to health care, you’ll need to set each of these items in your payroll. You can click this article to see the additional details and how to perform the process. How to set up and track the Employee Retention Credit.
If everything is already set up and the issue persists, I suggest contacting our QuickBooks Support Team. They have the tools to pull your account and assist you in populating Worksheets for the Employee Retention Credit (ERC). Also, they can assist you in overriding all the amounts if necessary.
Please refer to this article to view various information on how QuickBooks populates each line and an equivalent report from your payroll software: How QuickBooks populates the 941.
Please know the Community has your back. If you have any clarifications or other concerns, click the Reply button and add a comment. I’ll jump right back in to assist further. Have a good one.
First let me mention that our accountant assures me that we qualify for the ERC for the 2nd quarter of 2021. I know what wages and employer paid health amounts I can use. BUT, we do not track them in Quickbooks because this pertains to something in the past, something we did not know we would be eligible to take before the end of the quarter. That said. How do I override the sections on the 941 or at least get a Worksheet 1 to come up so that it can populate the 941 form for me?
PLEASE HELP- The Quickbooks proposed solution to tracking the ERC DOES NOT differentiate regular wages from tipped wages. Tips do count as ERC wages per the IRS. If I include reported cash tips as a CARES addition to a paycheck using the QB tax mapping created for that payroll item, the tipped income is getting reported on the wrong line of form 941! If I report the tips as I normally do, they are being excluded from the ERC calculations.
Quickbooks needs to create a new payroll item that tracks this type of CARES earnings and maps it to the correct line on the 941 and includes in its worksheet calculations.
Alternatively, Quickbooks needs to let customers record wages as per usual and fill in their own worksheet for form the ERC credit calculations and then populate that information to the 941.
Additionally - I might point out that the QB ERC tracking solution as it stands now DOES NOT allocate wages to Workmans Comp codes.
Seriously QB. Who came up with your ERC tracking solution???
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