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”. The ERC provides eligible employers with per-employee credits based on qualified wages and health insurance benefits paid. Companies can record receivables for credits that they are eligible for but have not yet received, or debts for credits received before incurring related payroll costs. The ERC is a refundable payroll tax credit that offers financial aid to companies affected by the pandemic and encourages them to keep their employees on the payroll.
Congress approved programs to provide financial assistance to companies during the COVID-19 pandemic, including the employee retention credit (ERC). 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.