Employee Retention Credit

I have a few pointers on how you can apply for employee retention credit, Bahar93.

You'll have to make sure you qualify for the credit before you can set up the Employee Retention Credit. The size of your workforce, the structure of your business, and the reason why your business may or may not be closed effect whether or not you can take this credit.

Once determined you are eligible to accept the credit, you need to first set up your payroll to accept and track the credit. Since the CARES Act's 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, and then run payroll. For more information and detailed steps, please read these articles: 

• How to set up and track the Employee Retention Credit under the CARES Act

• What is the Employee Retention Credit?

You'll want to browse these helpful articles in case you have any questions about Intuit Online Payroll.

Reach out to us if you need anything else about employee retention credit. We're always here to further assist you.

The payroll admin never took advantage of this and we definitely qualified. How can I report my credits now? I was told I could still submit. Thanks....PS: 941X is so confusing

I've got the steps you need on how to report your credits, Fancift.

You'll have to set up your employees with the pay types. Let me show you how:

1. Navigate the Payroll menu and select Employees.
2. Select the employee you’d like to add paid leave to.
3. In the How much do I pay an employee section, select the edit icon to add more payment types.
4. Under the CARES Act section, select the pay types that apply to you: CARES Act Regular and CARES Act Overtime.
5. If applicable, select and enter any Employer Paid Health Insurance Premium amount to be tracked on each check.
6. Select Done.

Once done, run your payroll using the pay types. Here are the steps:

1. Select Run Payroll from the Overview screen.
2. If you have multiple pay schedules select the schedule you are paying.
3. Enter hours in the corresponding fields:

• For regular hours in the Employee Retention Credit Regular.
• For any overtime hours in the Employee Retention Credit Overtime.
• If applicable, enter the Employer Health Insurance Premium.
• If your employee is salaried, select the salary amount shown to reduce the hours by the number of hours you are paying your employee with the Employee Retention pay items.
• If your employee is commission only, you will need to convert their pay to an hourly rate.

     4. Enter any other items you need to include.

     5. Select Preview Payroll.

     6. Review the paychecks, and then select Submit Payroll.

Regarding 941X, I recommend contacting our Payroll Support so they can provide you with more details about it.

Moreover, I'm sharing these articles to learn more about the Employee Retention Credit and how to calculate it:

• What is Employee Retention Credit?
• How to calculate the Employee Retention Credit.

Let us know if there's anything else we can do to help you. The Community is always ready to help.

This applies to ONLY sick pay that I paid my employees correct?

Hi there, Fancift.

Thanks for getting back to us. Allow me to chime in and share some information on how Employee Retention Credit (ERC) in QuickBooks.

Yes, ERC will apply to a sick employee based on the setup and calculation. You can check this article for more details: What is the Employee Retention Credit?

Need to make sure your employees have the correct liabilities within a certain period? Our payroll articles can help you see the data. If you need help running one, you can check this article: Run payroll reports.

You're more than welcome to post here again if you need help with your payroll taxes or your employees. If you have concerns about QuickBooks Online, I'll hear them out.