americanaccount
Level 1
03-15-2021
07:10 PM
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Is Employee Rentention Credit - taxable or non taxable income and where is it to be reported on Form 1120S? This is the credit given on Form 941 specifically for 2nd quarter of 2020. Appreciate the help.
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Joseph1
Level 1
03-15-2021
07:35 PM
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It should be reported as a deduction to payroll expenses. Say your payroll was 10,000, and you received a credit of 3000, you will report payroll expenses of just 7000
americanaccount
Level 1
03-15-2021
10:17 PM
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Thank you Joseph1. Employee Retention Credit is a combination of wages (in this case it will increase the profit of the company) and social security taxes. How will those taxes be reported on the return? Thank you.
