COVID-19 Employee Retention Credit

Clients that have 500 or fewer employees

Select
Setup
, then
Clients
.
Select the client that is claiming the credit.
Select the
COVID-19 Acts
tab.
Mark the checkboxes for the quarters in which the client is claiming the credit and then save the client record.
note
When you process payroll for the client,
Accounting CS
makes the liability adjustments automatically
Run the Employee Retention Credit Summary report (available from the Accounting CS Library) to verify the amounts.

To determine the appropriate credit amount, run the
Employee Retention Credit Summary
report, available from the Accounting CS Library.
Select
Actions
, then
Manage Payroll Liabilities
.
Select
Add Liability
.
Select
941/943 - Internal Revenue Service
in the
Vendor
field.
Select
FIT Employee Retention Tax Adj
in the
Item
field.
Make
Notes
if needed.
Enter the transaction date.
note
This should match the payroll check date in which the employee wages were included.
Enter negative Amount to match the wages eligible for the credit.
Select
OK
.

Clients with 501 or more employees

Determine the appropriate credit amount.
note
This will vary by client, but if you created a new pay item to use for employees not performing services you might run a report such as the Wage Register report, filtered down to the appropriate employees or pay items.
Select
Actions
, then
Manage Payroll Liabilities
.
Select
Add Liability
.
Select
941/943 - Internal Revenue Service
as the
Vendor
.
Select
FIT Employee Retention Tax Adj
for the
Item
field.
Enter notes in the
Notes
field (optional).
Enter the transaction date. This should match the payroll check date in which the employee wages were included.
Enter a negative
Amount
that matches the wage amount paid for the hours the employees weren't working.
Select
OK
.

Deleting an Employee Retention Credit liability adjustment

Select
Actions
, then
Manage Payroll Liabilities
.
Select
+
in the row of liabilities you want to show.
Either mark the
941/943 - Internal Revenue Service vendor
checkbox to select all unpaid liabilities for that vendor or mark the checkboxes next to the specific liabilities for that vendor.
When you have selected the liabilities you want to delete, select
Delete Selected
.

Examples: Employee Retention Credit calculation