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A
AZEA
April 7, 2020
Question

COVID-19 Leave Payroll Items Tax Is Wrong

  • April 7, 2020
  • 2 replies
  • 0 views

You need to correct the new COVID-19 leave payroll items ASAP. Some of us have payroll to run Tuesday and Wednesday April 7th and 8th.

 

They are incorrectly calculating ERs SS tax at 6.2%. See the IRS FAQ on these leave payments and credits. The employer is not supposed to be paying ERs SS tax on the leave wages. See s7005 of FFCRA.

 

Also, how are you proposing to get the ERs medicare tax on the leave wages in to the credit. You have only set up a Health Insurance item. The ERs medicare tax is also supposed to be in the credit.

      2 replies

      Anna S
      Anna S
      April 7, 2020

      Hello, @AZEA.

       

      Thanks for reaching out to the Community with your questions and concerns. I know this can be a trying time for your business considering things are changing each day. I'm going to provide you with information about the new payroll leave.

       

      As long as you've set up your employee's pay rate correctly, you should be able to run payroll like normal without having to requests credits later on. You can follow the steps mentioned by @Nick_M in your previous post. After double-checking your employee's info, you can review your payroll reports to see how many hours you've used in these tax credits. If all your employee's info is correct, then the ERs SS tax is calculating correctly. Everything else you need to know about leave wages is outlined in the Families First Coronavirus Response Act article.

       

      Feel free to reply if you have any other questions. Take care!

      A
      AZEAAuthor
      April 7, 2020

      On the test payroll I ran yesterday it was calculating ERs SS on the leave wages using the new payroll item for the COVID-19 leave.

       

      If you read s7005 of the FFCRA you will see that no ERs SS is supposed to be calculated on the leave. I also looked at the new payroll item and the box to calculate ERs SS is checked. As it is a QBs generated item it is impossible to uncheck that box. You guys need to correct the payroll items and release another payroll update.

        S
        Steve_C
        April 7, 2020

        Hi AZEA. As mentioned in the IRS article on COVID-19-Related Tax Credits. The amount will still be deducted and tracked but you will receive a credit for the Employer Portion SS.

         

        If you have any more questions about the way the tax credit works I would suggest you reach out to a tax professional. If you go to our find a Pro-Advisor web page you can locate one in your area.  If there's anything else I could do for you as well, just let me know.

        M
        MEARESPLUMBING
        April 21, 2020

        when I do a quick report for covid-19 expenses, it is adding the health insurance credit instead of crediting it. also i do not see ss or medicare in the report at all. what did we do wrong. we went over the item set up 3x

        MaryLandT
        MaryLandT
        April 21, 2020

        Thanks for joining this thread, MEARESPLUMBING.

         

        You'll want to pull up the Payroll Summary report to SS and Medicare. It includes payroll totals, employee taxes, and contributions.

         

        To get the report:

        1. Go to Reports, then Employees and Payroll.
        2. Select Payroll Summary.
        3. Adjust the date range appropriately.

        To ensure you're all set up for the COVID leave payroll item, I highly suggest contacting our QuickBooks Desktop Payroll Team. They can do screen-sharing with you and verify the information before running payroll. 

         

        Here's how to contact them:

         

        Open your QuickBooks Desktop to connect with us.

        1. Open QuickBooks.
        2. Go to Help, then select QuickBooks Desktop Help.
        3. Select Contact Us.
        4. Enter your concern, then select Continue.
        5. Choose Start messaging to connect with a support expert.

        Should you need anything else, please let me know. I'm glad to help you out.

         

        Thank you and stay safe!

        L
        Lmendez10
        August 23, 2021

        I have contacted these so called specialists twice now and they have no idea what I am talking about or how to do this. I am so frustrated, I wish QB had some competent customer service!!

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