USA Emergency sick leave credit under Covid 19


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Hi all,

I understand what 4 options are for sick leave Credit for Covid 19. Question is how to do the general entry? I work for not for profit and I am in education world. Our company use paycor for payroll. Few employees got ESL credit and employer got tax break. Eventually employer didn’t pay that amount to come out of our bank account but employee received paycheck How do I do the JE without impacting form 941. Thanks
 
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AGH the CPA

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So my understanding is that the amount paid to the employees is taken as a credit against the 941s. This is what I would do:

say it was $100 of total pay, $10 of Covid pay and $25 941 tax

DR wage expense 100
CR bank 100

DR 941 tax expense 25
CR accruals 25

PAID 941

DR accruals 25
CR bank 15
CR covid offset account 10
 

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