How do i enter employee retention credit in quickbooks?

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, 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”. Because the employee retention tax credit covers overtime, regular time, and company contributions to health care, you'll need to include each of these items in your payroll and then run QuickBooks Payroll. Before you set up the employee retention credit in QuickBooks, you must ensure that you qualify for the credit. The ERC or Employee Retention Credit is a refundable tax credit under the CARES Act for eligible employers who have experienced a significant decrease in gross income or certain closures to COVID-19.The ERC is a refundable payroll tax credit that offers financial aid to companies affected by the pandemic, encouraging them to keep their employees on the payroll.