Claiming Employee Retention Credit on 941 in QuickBooks

Are you 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 has prepared a guide to help you implement the employer retention credit (ERC) in your payroll software. The ERC is requested in federal payroll tax returns (Form 94), depending on the quarter in which the payroll costs were paid. 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”.Normally, if you have sick leave or an FMLA credit to declare on your 941, worksheet 1 (the fifth page) is automatically generated where you can enter your ERTC, and then those credits are automatically filled in on Form 941. 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. The amount that will be credited or reimbursed to you must be presented as a negative number in column 4.A positive balance in column 4 represents an amount you owe. By following these steps, you can easily claim the employee retention credit on 941 in QuickBooks.