topic My employer added non-taxable earnings to my gross pay that I didn't receive. It was money from the Cares Act, but I never missed any time from work. Is that right? in Retirement tax questions

My employer added non-taxable earnings to my gross pay that I didn't receive. It was money from the Cares Act, but I never missed any time from work. Is that right?

paulas_2- — Mon, 09 Mar 2026 06:19:38 GMT

Re: My employer added non-taxable earnings to my gross pay that I didn't receive. It was money fr...

GeorgeM777 — Tue, 08 Feb 2022 04:25:04 GMT

We are not sure if you are referring to the employee retention credit under the CARES Act and certain sections of the Internal Revenue Code. This credit allowed employers to obtain a credit against “applicable employment taxes” paid on behalf of their employees. However, whether this relates to the employee retention credit or some other credit which is non-taxable to you, your W-2 should accurately reflect the wages you received in 2021, and the withholding you paid in 2021. Were the non-taxable earnings you reference added to your wages in Box 1? If not, in what box on the W-2 have these non-taxable earnings been entered?

Re: My employer added non-taxable earnings to my gross pay that I didn't receive. It was money fr...

paulas_2- — Wed, 09 Feb 2022 01:00:25 GMT

Thank you for responding. The earnings are not included in Box 1 of my W-2 or any of the other boxes. They are only listed as non-taxable earnings and included in the gross pay on the Earnings Summary that is attached to the W-2.

Re: My employer added non-taxable earnings to my gross pay that I didn't receive. It was money fr...

KrisD15 — Wed, 09 Feb 2022 02:38:48 GMT

I assume they are for Sick and/or Family Leave provided under the American Rescue Plan Act.

This information is provided to you in case you also are a Self-Employed Taxpayer, since it may be needed if applying for "Self-Employed Equivalent Credits". If you are not also Self-Employed, the information is not needed for your tax return.

Are you sure you never took sick or family leave in 2021?

Was your place of business ever closed but paid you?

Re: My employer added non-taxable earnings to my gross pay that I didn't receive. It was money fr...

paulas_2- — Wed, 09 Feb 2022 02:46:22 GMT

No, I didn't take any leave in 2021. My family and I managed to avoid Covid until 2022. That's why I was confused and wondered if it was something I needed to look into. Unfortunately, our HR person acts like it's none of my concern since it isn't taxable. If it's nothing to worry about, that's good, but I'd still like to understand it.

Re: My employer added non-taxable earnings to my gross pay that I didn't receive. It was money fr...

RobertB4444 — Wed, 09 Feb 2022 03:00:14 GMT

@paulas_2 It certainly has no effect on your TurboTax filing so it is not something that we can help with here. Why they are entering it onto your pay stub is a question that can only be answered at your place of employment.