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October 31, 2020
Question

Cares Act and Education Credit Entry

  • October 31, 2020
  • 1 reply
  • 0 views

I'm trying to enter student loans as they relate to the CARES act.

 

Under the CARES Act, employers can contribute up to $5,250 toward an employee's student loans from March 27 until December 31, 2020, and the payment is excluded from the employee's income. It is also tax-free for the employer, since it's not subject to payroll taxes up to the contribution threshold.

 

This is a pretty important part of the CARES Act. QB Payroll made other adjustments for the CARES Act. Does the QB Payroll engineering team have any plans to address this by year end or is there a work around solution?

 

My company is trying to participate in this student loan forgiveness benefit. I don't think it's fair to them to say we can't because our payroll provider hasn't addressed the issue.

 

I have tried entering this and the program makes it subject to taxes. 

 

There has to be a solution!

1 reply

LieraMarie_A
October 31, 2020

Hey there, @NFSllc.

 

Our product engineers are working diligently to get all the CARES Act updates included in QuickBooks. For now, we're unable to input the tax-free contribution to employee's student loans. Rest assured that I'll relay this message to our team in concern here on my end. In the meantime, you can check out our blog page for any new updates to QuickBooks Desktop.

 

Thank you for reaching out and having patience with us during this tough time. Take care!

December 13, 2020

Is there any update to how we record this education credit entry? We are close to the end of the year and we want to participate in providing this to our employees but I need to know how to complete transaction.

katherinejoyceO
December 13, 2020

Thanks for making a follow-up on this thread, @rebasloan3. I understand that you want to record the education credit. At this time, this option is still unavailable in QuickBooks, and we don't have the exact time for this to be implemented. 

 

For all product updates, you can check out our Firm of the future page. 

 

Feel free to message us again if you have other questions, @rebasloan3. We're always around here to help.