How to Use Employee Retention and Qualified Health Expenses COVID-19 Pay Types
- Open the Payroll app from your Zenefits dashboard.
- Go to the Pay Runs tab from the top navigation bar.
- Select a draft run.
- Click Edit next to one of the workers listed.
- In the Contribution section, +Add Contribution.
Note that will not affect your worker’s pay stub at all. It is simply the Zenefits system way of tracking how your company avails the credits. - Select from the COVID-19 Credits and Add.
- Next to the selected COVID-19 credit, enter in the amount of the wages/health plan expenses you’ll be claiming.
If you need guidance on the amount of wages or health plan expenses you can avail, the IRS has provided these resources on Employee Retention and Qualified Health Plan Expense data. - The amount you enter in the Contribution will be used to calculate the credit amount, which is 50% of the qualified wages/expenses. The credit amount will be displayed on the next step, Approve Run.
- Save.
Note: Employers that wish to take advantage of any COVID-19 tax relief credit options must make sure they understand:
- Any limits to the amount of credits they can claim
- Reporting requirements when claiming credits through payroll or other IRS Forms
- Restrictions on an employer's ability to claim credits and seek other relief options
For more details see the IRS resources on Employee Retention Credit.