Employee Retention Credit Temporary Subtraction

Include the amount of wages not deducted from income in the current taxable year and used for the calculation of the federal ERC on the Employee Retention Credit line.

Include the amount of wages not deducted from income in the current taxable year and used for the calculation of the federal ERC on the Deferred Foreign Income/Employee Retention Credit line.

Include the ERC nonconformity adjustment on the line for Employer credit for paid medical leave or employer payroll credit for required paid family leave. 

You should also include a statement with your return, stating why ERC is impacting the 2022 return and what line you included the adjustment. 

Include the ERC nonconformity adjustment on line 2 of the nonconformity schedules titled, “Employee Retention Credit.”