FFCRA and CARES Acts including the PPP

Let me help you record the Employee Retention Credit (ERC) refund for 2022, AC0820.

The posting of the credit depends on how the transaction is added to QuickBooks Desktop. The accounts used while tracking the credit play a big factor in realizing the credit on your reports. It will show up on your Profit and Loss report if it adds up to your income. On the other hand, if the credit deducts your liabilities, then it'll post to your Balance Sheet report.

Just set up the ECR payroll items and expense account to be able to track the eligible wages for the tax credit. When they file their quarterly federal employment tax return (Form 941), they can request a refund of any credit not previously taken as an advance refund or by reducing tax deposits. If you received a refund check for the Employee Retention Credit (ERC), record it by creating a bank deposit in QuickBooks for 2022. I'll show you how.

1. On the Homepage, select Record Deposits / Make Deposits.
2. In the Deposit To dropdown, choose your bank account.
3. Ensure it has the correct date.
4. Under the From Account column, look for the COVID expenses you used when setting up the ERC.
5. Enter all of the required information, including the check amount.
6. Once done, hit Save & Close.

Here's an article you can refer to for more details about recording and making bank deposits in QuickBooks Desktop. To learn more about how the ERC is calculated, read the following articles:

• What is the Employee Retention Credit?
• How to calculate the Employee Retention Credit

When filing the quarterly federal employment tax return (Form 941), you can request a refund of any credit not previously taken as an advance refund or by reducing tax deposits. Just check line 11c or line 13d of the form: 

Furthermore, you can review this resource for more details when filing quarterly tax forms in QuickBooks Desktop: Pay and file payroll taxes and forms manually in QuickBooks Desktop Payroll.

If you have further questions about retention credit, please leave them in the comments section below. I'm always willing to assist. Have a great day ahead.