Thank you for clarifying! 

I am worried I have been thinking of the employee retention credit all wrong now!   

My client filed amended 941-s for 2020 to claim the employee retention credits (they had not previously done so for 2020).  They are going to be receiving a large refund from the IRS as a result of the amended 941s.   I thought we had to go back and amend the 2020 1120-S income tax return and reduce the amount of wages deducted on the return by the amount of the employee retention credit that is being refunded.

Am I wrong?   Thanks for your help!