"when the 8846 credit is deducted from wages as an expense"

It's not a deduction of Wages. It's for the FICA Tax Expense:

"use Form 8846 to claim a credit for social security and Medicare taxes paid or incurred by the employer on certain employees’ tips. The credit is part of the general business credit."

"I'm going with the fact that it has not been specifically mentioned in any of the IRS notices I have seen unless someone has seen something different"

Did you not follow what is in my earlier reply, and did you not click the link? There are three notices referred to here, if you want to dive into the details:

https://www.irs.gov/newsroom/treasury-irs-provide-additional-guidance-to-employers-claiming-the-empl...

The qualified tips are considered part of Wages; but the tax paid on the tips are part of the Employer's non-wage cost for the business credit that can be passed through. The ERC cannot be passed through and is calculated on those Wages. It doesn't not affect how employer taxes are being treated.

"but trying to determine the wages used as a business expense for 2020 Fed return so I can get this specific S-Corp filed soon, has been the issue."

Let's make sure we understand Payroll as Wages + Tax.

Gross Wages <== includes amounts held back from employee takehome as the payroll tax the employer sends on, on behalf of the employee; this Gross is part of Payroll expense

Employer Tax Expense <== not Wages, but is part of Payroll expense, because this is all part of labor costs. Other payroll cost would be, for instance, retirement match, tuition reimbursement, health costs, and other benefits, which might be taxable or not.

ERC is based on specific types of Pay. Remember, this has to do with Relief.

FICA tip credit is based on the employer's share of Taxes that are computed on specific types of Tips. Tips come from operations that are not disrupted. The employers' share of taxes is part of general business credits, not relief.

Apples and oranges.