aeh-cpa
Level 3

I agree that the wage deduction is supposed to be reduced.  I believe the problem I'm having might be due to the fact that the client received a refund of the credit amount.  Should I enter the deposit as a reduction of wages and ignore ERC input field or enter the deposit as other income?

Also, how are you handling any ERC claimed on 4th quarter Form 941?  I have clients that did not reduce payroll tax deposits and instead will be getting a refund for the ERC in 2021.  Should this be recorded on the books as of 12/31/20?

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