Go to the Payroll menu and then select Employee, For regular hours in the regular employee retention credit, For any overtime in the employee retention credit, Overtime. If applicable, enter the employer's health insurance premium. Wondering how to implement the employee retention credit in QuickBooks Online? As a subscriber to the QuickBooks Online (QBO) payroll community, our accounting services team prepared the following guide to help you implement the employer retention credit (ERC) in your payroll software. As you may have heard, the ERC is requested in federal payroll tax returns (Form 94), depending on the quarter in which the payroll costs were paid.
With this in mind, organizations that use third-party payroll providers, such as QBO, to prepare and file payroll statements should take steps to implement this credit once they determine their eligibility. This includes configuring your payroll to accept and track credit “in real time”. In this situation, you may consider deferring the implementation of the ERC in QBO until a plan is established to maximize funding for ERC and PPP loans and, instead, choose to file the amended returns at a later date. Another topic to consider is how the ERC will affect other aid programs, such as Check Protection Program (PPP) loans.
The process for applying for the ERC is more complex than requesting a PPP, since it requires detailed calculations to determine the credit, modify quarterly payroll tax returns and modify the company's tax returns once the refunds are received.