How Do I take the Employee Retention Tax Credit as a Patriot Customer?
The CARES Act allows for employers to take an Employee Retention Tax Credit, which is 50% of up to $10,000 in wages per employee, for businesses affected by COVID-19.
To see if your business qualifies for this tax credit, see the IRS page FAQs: Employee Retention Credit under the CARES Act
How to Request Employee Retention Credit in Patriot
If you are a Full Service Payroll customer, you can request the Employee Retention Credit inside your payroll account. Once you have requested the credit, any payrolls you run within the credit timeframe will automatically calculate and the credit will be applied to your next quarterly federal tax return. If you qualify for this tax credit, including March, the credit will be applied to your 2nd Quarter federal tax return.
Go to Reports > Payroll Tax Reports > Social Security Deferrals & Employee Retention Credits.
This page is used for both Social Security Payment Deferrals and Employee Retention Credits. You may complete one or both of the sections as your business qualifies.
You will need to answer all of the questions about your business to determine whether you qualify for the Employee Retention Tax Credit.
- If you have not and do not expect to receive a PPP loan, check the boxes.
- If your business is not a state or local government agency, check the box.
- Indicate whether your business has over or under 100 employees. Note if your business has over 100 employees, Patriot cannot calculate the Employee Retention Tax Credit for you. However you can calculate the credit yourself and email the dollar amount to email@example.com. We will update the credit amount so that it appears on your quarterly federal tax return (Form 941). For guidance on calculating the credit yourself, see the IRS page Employee Retention Credit.
- Note that if you have health insurance costs you want to include, email firstname.lastname@example.org the dollar amount of health insurance costs and we will update your account so that it appears on your Form 941. See this IRS page for guidance.
- If your business has been affected by COVID-19 as defined on the form, check the box.
- Enter the Start Date your business was affected.
- Enter the End Date your business resumed operations. You can leave this blank and enter this date later, if needed.
- Select your owners and employees related to the owners. These employees are ineligible for this tax credit.
- Check the box at the bottom of the page to opt in to the Employee Retention Tax Credits Program.
Once you qualify, click the “Submit” button. The total estimated tax credit amount will be shown. Any future payrolls you run that are dated within your start and end dates will calculate a tax credit, and will be available to request a refund.