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August 25, 2020
Question

How do we turn off the employee tax for FICA and SS per trump payroll tax deferment?

  • August 25, 2020
  • 3 replies
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3 replies

john-pero
August 25, 2020

It does not go into effect,, if it does at all until 9/1 and only for earnings earned from 9/1 on and would not include wages for work today but paid on 9/1

 

I would never turn off the tax since the tax is still obligated but may only be deferred

 

First you wait for guidance from Treasury (IRS) which has yet to materialize 

 

Second, you wait for your payroll software provider to update the process.

 

Third, you consider tge ramifications that as an employer you are ultimately responsible for submitting both your and employee taxes and this deferral for the employee might have to come out of your pocket on 1/1/21 

 

Many of us are considering two options.

1. Ask our employees if they are willing to take this 6.2% now and face a bigger tax bill or not.

2. Deduct as normal but advance the equivalent to employees and hold the deduction in escrow until year end or when there is factual guidance.

 

My initial thought is that this deferral may be optional, just like tge current deferral of employer ss that you might already qualify for

August 25, 2020

Welcome to the Community, brittacctmpcb70. I'd be happy to guide you through how to stop this tax from deducting out of your employee's paycheck.
 

There's just a few steps to remove this deduction. Here's how:
1. In the left navigation bar, go to Workers.
2. Confirm that Employees is selected at the top of the page, then choose an employee from your list.
3. On your worker's profile, click the small Pencil (✏️) icon next to their Pay section.
4. The numbers 1-5 will be displayed on the left. Number 4 is the section used for deductions. In this area, locate the FICA tax and click its Trash Can (🗑️) icon.
5. It will ask if you want to delete the selected deduction. Hit Yes to proceed.
 

You'll be able to find additional information about adding, editing, and deleting payroll deductions in the following resource: Change or delete a payroll deduction item
 

If there's anything else I can assist with, feel more than welcome to send a reply in this same thread. Have an awesome day!

August 28, 2020

Hi Zack,

Which version of QB your reply is for? Doesn't look like it will work for QB online.

 

Thanks,

Anna

Tori B
August 28, 2020

Hey there, @anna.pochigayeva

 

Thanks for following the thread. 

 

The steps provided by my colleague Zack are for our QuickBooks Online Payroll. If you don't use QuickBooks Online Payroll, you can check out the link he provided, Change or delete Payroll deduction Item. From there, you'll see a list of our payroll services and choose the correct one for you.

 

Please let me know if you have additional questions or concerns. I'll be here to help you every step of the way. You can always reach out to the Community any time you need a helping hand. Take care!  

October 2, 2020

Intuit's response on this has been pathetic.  They keep saying they are waiting for more guidance from the IRS and talking to the IRS regularly, as if they are meeting with Secretary Mnuchin daily to figure this out.  The guidance was issued by the IRS long ago and is linked above.  They just have not made this a priority and the solution is overdue, needed weeks ago. 

 

I am using Intuit online payroll, for which there seems to be no help community - any attempt to reach such a place redirects here.  Please correct and point me over if I'm wrong.