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jcorbin
January 9, 2020
Question

Massachusetts Paid Family Leave Not Calculating Correctly

  • January 9, 2020
  • 5 replies
  • 0 views

I believe I may have found a reason for the discrepancy that is going to occur when you file your first MA PFML quarterly report for Q4 2019 period via the Mass Tax Connect website. QuickBooks is incorrectly calculating the MA Paid Medical Leave payroll item at only 0.62%. Mass Tax Connect is calculating the MA Paid Medical Leave at exactly 0.61875%.  QuickBooks is also incorrectly calculating the MA Paid Family Leave payroll item at only 0.13%. Mass Tax Connect is calculating the MA Paid Family Leave at exactly 0.13125%. In other words, QuickBooks is incorrectly calculating at only two (2) decimal places and Mass Tax Connect is calculating at a full five (5) decimal places. And you can easily check this discrepancy by using the Calculator Mass Tax Connect provides on their website. I just ran our first payroll of the New Year last night for our small business and, as a result, I had to manually enter payroll adjustments for both payroll items on the Preview Paycheck window for each of our five employees. Intuit please correct this issue ASAP with a proper update that incorporates a full five (5) decimal places for each payroll item.

    5 replies

    J
    JonpriL
    January 9, 2020

    Hello @jcorbin,

     

    I want to let you know that your voice matters and I'm taking notes of your feedback and submitting it directly to our engineers.

     

    As of the moment, QuickBooks payroll calculates your taxes base on the two (2) decimal places of the tax rates based on what is implemented by Massachusetts.

     

    In the meantime, you may want to consider manually doing what you've started as a way around. This will absolutely help other users, like you, who are also in need to create an adjustment manually

     

    In case you need some reference, I've got you this article for more insights about your payroll tax: Massachusetts Paid Family Leave.

     

    I've also included the following articles below for future updates about our product:

    Let me know in the comment section down below if you have any other questions. I'm always around happy to help.

    J
    jcorbinAuthor
    January 9, 2020

    Thank you for your feedback and your prompt attention to this matter. As a result of the incorrect calculation last quarter, it appears I will also have to complete a Payroll Liability Adjustment, for the period ending 12/31/19, against each of the affected Payroll Items for each of our five employees. I have completed these in the past for employer-paid payroll items in order to account for the occasional discrepancy, but is it safe to do so for employee-paid payroll items? Also note the state of Massachusetts is requiring additional reporting in Box 14: Other on each our of employee's 2019 W-2 forms as "MAPFML". We will need this amount to exactly match what is owed and paid to the state of MA in our forthcoming Q4 2019 MAPFML report. If we complete Payroll Liability Adjustments to correct what should have been calculated for Q4 2019 for each of our employees, is this going to cause further issues? Or do we simply manually enter this amount in Box 14: Other on the W-2 to match what we will actually owe and pay to the state of MA for each employee?

      J
      jcorbinAuthor
      January 9, 2020

      So for example, we had an employee last quarter who earned $7,250 in Gross Pay according to our Q4 Payroll Summary Report. QuickBooks is currently showing MA - Paid Family Leave Emp. at $9.43 and MA - Paid Medical Leave Emp. at $17.99. When we go to run the Paid Family and Medical Leave Contribution Calculator, which the state Q4 report is going to exactly mimic (see attached PDF example), the State of MA is instead showing:

      Family Leave: $9.52 = $7,250.00 X 0.13125% and 

      Medical Leave: $17.94 = $7,250.00 X 0.61875% X 40%.

      Note as a small employer, we are not required to contribute anything; our employees are supposed to be paying 100%. As you can see, this is leaving a discrepancy of $9.52 - $9.43 = $0.09 for MA - Paid Family Leave Emp. and $17.94 - $17.99 = -$0.05 for MA - Paid Medical Leave Emp. So please provide detailed instructions on how we should be accounting for this discrepancy in QuickBooks via presumed Payroll Liability Adjustments for each employee to end Q4 2019. And then please explain how we should be reporting this on the W-2.

      N
      NEF72
      January 21, 2020

      Does anyone know how to change the rate in QB.  With fewer than 25 employees the rate is supposed to be .378%, but mine is still withholding the entire .75%.

        AlexV
        AlexV
        January 21, 2020

        I know how to update it, NEF72.

         

        You are correct.  Your combined rate is .378% since you have less than 25 employees. You can follow these steps:

        1. Go to Employees menu and select Employee Center.
        2. Double-click on the employee's name. From the Payroll Info tab, click on Taxes.
        3. Select the Other tab. Update the rates in the Emp. Portion Rate and Co. Portion Rate fields for each tax.
          • MA - Paid Medical Leave Co.
          • MA - Paid Medical leave Emp.
          • MA - Paid Family Leave Co.
          • MA - Paid Family Leave Emp.

        Here's an article as your guide about Massachusetts Paid Family Leave. This will explain everything you need to know about this tax.

         

        I'll be right here if you have more questions. Have a great day!

        P
        Pepsa
        January 22, 2020

        The rates suggested to be adjusted in the answer apply to the % of the overall amount due to MA DOR from the Employee and the Company in the 4 separate settings.  The problem is with 25 or fewer employees (with the Company paying 100% of the contributions and Employee 0%) the MA Paid Medical leave overall rate should be .248%. This was confirmed by a MA Tax connect phone representative.   I expected to be able to change the rate from .62% in the payroll items the same way one may annually adjusts the state Unemployment insurance tax rate.  Unfortunately the 0.62% value for MA paid Medical leave is not adjustable in the payroll items / payroll setup sections,  Can this be fixed? Is there a different way intended to enter the proper value applicable for companies with <25 Employees?   

          JaneD
          JaneD
          January 28, 2020

          Hi Susann, 

           

          If you're using QuickBooks Assisted payroll, Intuit will file your Paid Family and Medical Leave taxes to your state agency.

           

          You can reach out to our Assisted Payroll Support Team. They can pull up your account and will be able to verify the status of your return.

           

          Otherwise, you'll have to file and pay it manually if you're using the regular payroll. You can visit the MA Paid Family Leave for employers website for additional information on how to file your taxes.

           

          You can learn more in this link about how QuickBooks handles Massachusetts Paid Family Leave.

           

          For future reference, check out this article that will serve as guide to help prepare your tax forms: Year-end checklist for QuickBooks Desktop Payroll.

           

          Leave a comment below if you have further questions. We'll be around.

            S
            SBW
            January 29, 2020
            @JaneD wrote:

            Hi Susann, 

             

            If you're using QuickBooks Assisted payroll, Intuit will file your Paid Family and Medical Leave taxes to your state agency.

             

            You can reach out to our Assisted Payroll Support Team. They can pull up your account and will be able to verify the status of your return.

             

            Otherwise, you'll have to file and pay it manually if you're using the regular payroll. You can visit the MA Paid Family Leave for employers website for additional information on how to file your taxes.

             

            You can learn more in this link about how QuickBooks handles Massachusetts Paid Family Leave.

             

            For future reference, check out this article that will serve as guide to help prepare your tax forms: Year-end checklist for QuickBooks Desktop Payroll.

             

            Leave a comment below if you have further questions. We'll be around.

            THANK YOU JaneD !!!!

            T
            TV Bent
            April 28, 2021

            My 2019 Quickbooks Pro desktop version not calculating any Massachusetts Family Medical Leave or Paid Sick Leave. I only have 2 employees so I'm not liable for the company portion but nothing is being calculated even after I set it up under the employee's "Other Taxes"??

            A
            angtaylor
            May 3, 2021

            As of 5/3/2021  Quickbooks Rep.... HELP!    This issue has not been fixed yet.   It's very time consuming to make these adjustments on every employee every quarter.   How can we get this resolved please?

             

            Sincerely, AT

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