Hi there, @dancer51. You can create a deposit to record your ERC Credit. First off, we'll have to create a new account to hold and house this credit. I'll show you how. Go to Accounting. Select Chart of Accounts. Click New. Under Account Type, select Other Income Account. On the Detail Type menu, select the account type accordingly. Enter the name of your new bank account. Say Employee Retention Tax Credit. Click Save and Close. From here, you can go ahead and create a new deposit transaction using the account created above. Kindly read and use this article to learn more: Record and make bank deposits in QuickBooks Online. I've got you covered if you have any other questions, please let me know by leaving them in the comments below. Take care!

Solved

HOw do I record an ERC credit?

Forum|Forum|3 years ago
December 28, 2022
3 replies
61 views

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QuickBooks Online

Best answer by JonpriL

Hi there, @dancer51.

You can create a deposit to record your ERC Credit. First off, we'll have to create a new account to hold and house this credit. I'll show you how.

Go to Accounting.
Select Chart of Accounts.
Click New.
Under Account Type, select Other Income Account.
On the Detail Type menu, select the account type accordingly.
Enter the name of your new bank account. Say Employee Retention Tax Credit.
Click Save and Close.

From here, you can go ahead and create a new deposit transaction using the account created above. Kindly read and use this article to learn more: Record and make bank deposits in QuickBooks Online.

I've got you covered if you have any other questions, please let me know by leaving them in the comments below. Take care!

J

JonpriLAnswer

Level 9

Hi there, @dancer51.

You can create a deposit to record your ERC Credit. First off, we'll have to create a new account to hold and house this credit. I'll show you how.

Go to Accounting.
Select Chart of Accounts.
Click New.
Under Account Type, select Other Income Account.
On the Detail Type menu, select the account type accordingly.
Enter the name of your new bank account. Say Employee Retention Tax Credit.
Click Save and Close.

From here, you can go ahead and create a new deposit transaction using the account created above. Kindly read and use this article to learn more: Record and make bank deposits in QuickBooks Online.

I've got you covered if you have any other questions, please let me know by leaving them in the comments below. Take care!

D

dancer51Author

Thanks! Worked like a charm!

K

Kurt_M

QuickBooks Team

Thanks for getting back here in the thread, @dancer51.

I'm glad that the recommendation provided by my colleague was able to help you with the situation you're facing. It's great to see satisfied customers that were able to resolve their issue in a short period of time.

In case you have any additional QuickBooks-related concerns or need help performing specific tasks in QuickBooks. Feel free to post here again. I'll be here, ready to help you.

J

john675645

To record an ERC credit in QuickBooks, treat it as a reduction of payroll expenses, not income. Create an “ERC Receivable” account, debit it for the credit amount, and credit your payroll expense for the same period. When the refund arrives, debit your bank account and credit the ERC Receivable. Any interest received should go under Interest Income.

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