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Level 2
posted May 13, 2022 2:30:18 PM

ERC Limited by S-corp Salaries and Wages not considering COGS wages

When I enter my ERC on line 7C  of my 1120-S 2021 return it exceeds the amount of my S corps Salaries and Wages listed on line 7A and produces a error message. 

The reason is that most of our payroll costs are in COGS.

and not part of salaries and wages.

If I change salaries and wages on line 7a it tells me that my Balance sheet is out of balance.

Not sure how to resolve the issue

0 2 536
2 Replies
Level 15
May 15, 2022 7:54:01 AM

You might want to contact Support for this issue.

 

What is the TurboTax phone number? (intuit.com)

 

The program is going to throw an error if the total credits exceed the total payroll.

Level 2
May 15, 2022 8:17:32 AM

What I did was subtracted  wages out of my cost of goods sold and added them into Salaries and wages and that did the trick.

Seems like a problem for manufacturing companies only