I received a surprise in the mail last week. A check arrived from the Treasury Department. Here is the challenge: I don’t know what it’s for. There was no explanation. While I assume it is for my employee retention credit, it doesn’t reconcile with my records.
I called my accountant and asked him what to do and how to account for it in QuickBooks. His advice was to book it as “other income” and wait for further guidance. That's precisely what I did.
I have spoken with other business owners who also have received these checks. One explanation for the amount is that the Treasury Department is adding interest to the amount due in some instances. It sure would help if they explained.
Has anyone else received their ERTC payments yet?
We received our Q1 2021 ERTC refund that was filed as part of the normal, on time 941 (not an amended return), and it agreed to our records. The return was filed mid-April, received the refund June 14th. We are still waiting on our amended Q4 2020 refund, which was also filed mid-April. Going on 5 months now.
YES - Our company received the check last week. It did not reconcile. We assumed it was due to accrued interest. We booked it as "Other Income" but expect to reconcile it into Labor Costs.
Sorry, to be clear it did not reconcile to our ERTC expected amount
Will let you know when we arrive back home after a long weekend break :)
If it reconciles or not, I am so happy to hear that it is closer for us to receive the ERTC - yay!
Ours was the Q2 ERTC. It matched what our payroll company had listed as an over payment on our 941. We received a similar check for Q1. The coding on the check said 06/2021 F-941 REF 01 which is how I knew to look to see if it matched the 941. That said, Brinker Simpson (CPA firm) believes we're entitled to more, so we'll be sending in amended 941s. They also said the IRS has told them that we likely won't see our 2020 ERTC refund until Dec, therefore I'm hoping for Jan to spread out this income, which I believe in the long run it will effectively be.
We also received a check on Friday that did not match our Q2 941 (it was about 1/2 the amount) with no letter of reconciliation or explanation.