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”. We have experience in requesting these reimbursements for customers from many industries and employee bases of various sizes. When done correctly, this will effectively introduce an employee's “negative payroll information”, so that the ERC tax refund you receive can be related to a specific employee.
Even if you have already filed your returns and have “finalized” that information in QuickBooks, you can modify your return and file it with the ERC. The Employer Withholding Tax Credit (ERTC) is a single refundable tax credit from the Federal Government. 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. There is a provision of federal law that allows employers to file an amended return up to three years after a tax period.