PERFECT FIT does not have built in tracking of Advance EIC payments. However, it is possible to track these payments, and enter manual adjustments on the forms.
You must use the Payroll Library dated 1/30/99 or later.
On the Payroll Records window, enter the abbreviation “EIC” in the box above the words “Total Withheld”. This is the description field for additional withholding. hit Tab, and in the amount field enter a NEGATIVE dollar amount, the amount of the EIC payment. This will ADD the amount to the Net Paid to the employee. You must determine the amount of the payment.
When making the payroll tax deposit, go to Payroll > Transactions > Pay USA Tax. Click on Pay All, then tab through the fields and zero out any state taxes. The net amount paid will be the taxes due less the EIC Payments, which show as negatives on account 2340.
To find the detail history of EIC payments, Find the Account Category 2340, and look at the detail history.
Please note, the accounting using this technique is correct, however you will need to enter adjustments on the 941 form and W-2’s.
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