The instructions for entering the ERC for a 1065 is similar to entering in a 1120S - enter the ERC credit on line 8 Salaries and Wages (less employment credits) Smart Worksheet.

The 1120S automatically entered the credit as a M-1 adjustment so that book income didn't change. 

However, that didn't happen when entering on a 1065. I manually made the adjustment on the M-1 as a nondeductible expense. Is this how PS handles the ERC for 1065 or did I do something wrong? Not sure why the 1065 wouldn't work the same as the 1120S and automatically adjust M-1.

PS automatically increases SE earnings on the K-1 line 14A. Should the ERC credit also increase SE earnings and SE tax on the 1040? I can't find anything in my research that addresses the ERC impact to SE tax.

Thank you.