Are you a QuickBooks Online (QBO) payroll subscriber and wondering how to implement the employee retention credit (ERC) in your payroll software? Our accounting services team has prepared this guide to help you get started. The ERC is a refundable payroll tax credit that provides financial aid to businesses affected by the pandemic and encourages them to keep their employees on the payroll. To be eligible for the credit, organizations must pay their payroll costs during a specific quarter. If you determine that your business is eligible for the ERC, you'll need to configure your payroll to accept and track the credit “in real time”.
To do this, go to the Payroll menu and select Employee. For regular hours, enter the regular employee retention credit. If applicable, enter any overtime in the employee retention credit field. Additionally, enter the employer's health insurance premium.By following these steps, you can easily implement the ERC in QuickBooks Online and take advantage of this valuable tax credit.
If you have any questions or need assistance with setting up your payroll, our accounting services team is here to help.