American Rescue Plan Act payroll items

Let me share the updates, Cada.

The Employee Retention Credit is extended to December 31, 2021, due to the passage of the Consolidated Appropriations Act and American Rescue Plan Act of 2021. The credit remains 70% of up to $10,000 per quarter through December 31, 2021, for the Qualified wages. Also, the large employer's definition is updated to employers that had an average of more than 500 employees in 2019. It was an average of 100 employees originally in 2019.

If there's anything else that you need, don't hesitate to let us know. We're just one post away. Take care!

Thank you for the prompt response. 

I should have been more clear in that I am looking for guidance regarding the COVID sick leave items (Employee sick and Family sick) under ARPA in which the employer is able to offset the leave amounts with credits against payroll tax. While ARPA extended the FFCRA sick leave items it reset the clock to April 1.

My understanding is also that paid sick leave and family leave wages are now subject to the employer share of Social Security tax (they weren't under FFCRA), but that the amount of credit being claimed for paid sick and paid family leave may be increased by the employer’s share of Social Security tax as well as the employer’s share of Medicare tax (1.45%) on qualified wages.  Further, the credits for leave under the Emergency Paid Sick Leave Act (EPSLA) and the Emergency Family and Medical Leave Expansion Act (EFMLEA) will be a nonrefundable payroll tax credit against the Medicare tax only (1.45%). Through March 31, 2021 under FFCRA, this credit applied against Social Security. The amount of the credit  does not change but it reallocates which portion of the credit is nonrefundable from Social Security to Medicare.

We can help you check your payroll item, cada.

Payroll is affected as to how payroll items are set up according to the tax tracking type, and employee information is recorded. I can route you to the right support who can check your payroll setup and check the eligibility for the provisions found under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

You can click here and then enter a brief data of your company and then Submit.

I'll be attaching references for future use: 

• New Exclusion of up to $10,200 of Unemployment Compensation
• Track your deferral payments for Social Security tax payments

Just post your question here if you need anything else. Take care and have a great day!

Thanks for the response, but again, the answer was not in regards to the actual question being asked.

Hello, cada.

Let me route you to the best support available to address this as soon as possible. We have our dedicated Paycheck Protection Program (PPP) support team who are specially trained in handling this kind of situation.

You can contact them by navigating the PPP Center inside your product and select Live Chat. 

Additionally, you can visit our Microsite for the latest news and information: https://quickbooks.intuit.com/small-business/coronavirus/paycheck-protection-program/.

If you have any other questions, feel free to reach back out. I'll be right here to assist you. Have a nice day!

question is not about paycheck protection program.  it is about setting up payroll items pertaining to the employee and family sick leave components of the American Rescue Plan Act of 2021.

Hi cada!

Here are some updates about the American Rescue Plan Act of 2021.

This new act simply changed the limits so more companies qualify for it and companies that already qualified for it will get more. QuickBooks Desktop Payroll will follow the current flow.

You may also check out IRS's statement on this Act: https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021.

In addition, I also would like to reiterate my peers' recommendation to reach out to our dedicated Support Agents about this concern so they'll be able to assist you further. Go to the PPP Center within your product and select Live Chat.

Need more understanding about ARPA? Check this link: American Rescue Plan Act provides PPP funding and tax breaks.

I'll be here if you have more questions. Take care always!

Does this happen automatically through my intuit payroll? 

Will this happen automatically? 

Hi Jenny R!

Thanks for joining this post.

For both QuickBooks Online Payroll and Intuit Online Payroll, changes based on the newly enacted American Rescue Plan Act of 2021 will take effect automatically. Currently, our team is working on extending built-in dates.

You may check the IRS statement about this: IRS Statement - American Rescue Plan Act of 2021.

Please feel free to post any questions you have below. We'll respond as soon as we can.

As you state above that for both QuickBooks Online Payroll and Intuit Online Payroll, changes based on the newly enacted American Rescue Plan Act of 2021 will take effect automatically.  What is the plan regarding desktop payroll?

 Changes are coming daily to QuickBooks Online Payroll, Intuit Online Payroll and QuickBooks Desktop Payroll, cada.  

The IRS is working on issuing guidance surrounding the implementation of the newly enacted American Rescue Plan Act of 2021 and we will continue to keep you up to date with the latest information. For more detailed information please refer to this article: IRS Statement - American Rescue Plan Act of 2021.   

Start a new thread or visit this post again if you have concerns with your QuickBooks program. I'm here to offer help again. Stay safe!

Hi,

I am following this thread daily, if you have any update please post it here. I have contacted customer service  I was told to use the payroll item with cares retention credit which in my opinion is completely wrong. So far I have been using the payroll item national paid leave credit to pay the covid leaves. instead of using the default tax setting I have checking social security box. And I don't know if this is the correct way to do it. 

Hi, @xdina.

We'll definitely post updates about the American Rescue Plan Act of 2021. On the other hand, you can also visit these pages to gather and check for QuickBooks news and the latest enhancements:

• For QuickBooks Desktop: Product Updates and Industry News.
• For QuickBooks Online: The QuickBooks Blog.

Please keep in touch with me here if you have any other QuickBooks or payroll concerns. I've got your back, and I'm always ready to help. Keep safe always!

Jumping in here - I have set up all my employees to track refunds for future payroll, but what about getting credits from 2020? Originally, I couldn't qualify for this credit since my company received PPP but now we can. I can't figure out how to file for these credits retroactively. Any help appreciated.

How do I track refundable pay given to staff when getting vaccinated? I can't find that information in the system. 

Good day, @imoylan.

Getting a retroactive credit is unavailable since we don't have the option to edit a paycheck in QuickBooks Online. However, you can reach out to our Payroll Support Team. They can create an adjustment for you and apply the credits to your previous payroll. 

1. Click the Help menu in the upper-right hand corner and click Talk to a human.
2. Type in "Talk to a human", then press Enter.
3. Look for I still need a human and click on it.
4. Select Get help from a human.
5. Choose between Chat with us, Schedule an appointment, or Have us call you.

With regards to tracking of refundable pay given to your staff for vaccination, I'd recommend reaching out to your accountant. They can provide you the right steps to ensure that your payroll records are accurate.

Additionally, you can check out our support hours to ensure that we address your concerns on time.

I'm just a reply away if you have other questions with the QuickBooks Online Payroll. Just add the details of your concerns in this thread and I'll help you out.

Why hasn't QBs increased the Dependent Care FSA deduction from $5,000 to $10,500? It's been over a month since the American Rescue Plan Act has offered this option, but when I call Quickbooks seems to have no answer. Employees are requesting this and QBs can't follow the law? I don't understand. Please update us on the fix. 

Under the American Rescue Plan Act of 2021 "employers are entitled to tax credits for providing paid leave to  employees who take time off related to COVID-19 vaccinations". This includes paid time taken to get vaccinated (including travel time) and any paid time needed to recover from the vaccine. The method for claiming the credit is via Form 941 which is filed by Intuit. This tax credit includes the wages paid (sick leave or regular pay), any health plan expenses, and any employer's Social Security/Medicare taxes paid on behalf of these wages. However, there does not seem to be ANY method to collect this data in the Online Payroll system at present. Before you recommend I call the support line, I've already done so and they have NO idea what I'm talking about. This clearly has not migrated down the food chain. I'm attaching the IRS document for your reference and look forward to a relevant recommendation to report these hours and taxes.

Ref. https://www.irs.gov/newsroom/employer-tax-credits-for-employee-paid-leave-due-to-covid-19 

I've called support 3 times. Please set up the ARP payroll item which has a window of 4/1/2021 to 9/30/2021. Please set this up asap.

Thank you

This is not the kind of experience we want you to have, @swang.

You can set up the  US-COBRA Subsidy Credit payroll item from the Employees menu. You can use this payroll item to track COBRA subsidy credit. Once done, you can enter and pay bills in QuickBooks Desktop to account for your COBRA payments to your health insurance provider.  

First, make sure to have downloaded and installed the latest payroll update for your QuickBooks Desktop (QBDT). This ensures you stay compliant with paycheck calculations. See this article for detailed guidance: Get the latest payroll tax table update. 

You can always go to our Product Updates page and the Firm of the Future page to keep you in the loop as to what’s new and what’s coming.

Let me know if you have other questions or follow-up questions with your payroll items. I'm always here ready to help. Have a great rest of the day!

The lack of communication, let alone guidance on this topic is frustrating.  I am reposting a reply to the thread  "Anywhere to discuss the american rescue plan paid employee leave?" as it is applicable to this thread.  Thus far, in this thread we have been directed towards information on how to track employee retention credit under the CARES act, the Paycheck Protection Program, and from Quickbooks Team member AlexV that his new act "simply changed the limits so more companies qualify for it and companies that already qualified for it will get more. QuickBooks Desktop Payroll will follow the current flow" (for FFCRA payroll items), and again from AlexV "that for both QuickBooks Online Payroll and Intuit Online Payroll, changes based on the newly enacted American Rescue Plan Act of 2021 will take effect automatically. and that currently, our team is working on extending built-in dates".  Now we are directed towards information regarding setting up COBRA under ARPA (which is appreciated but not pertinent to the questions being asked).  In the "Anywhere to discuss the American Rescue Plan Paid Employee Leave?"  thread there is indication that perhaps new ARPA payroll items may possibly be setup, but of course we are waiting on the IRS.  Meanwhile, have been paying people under this act.  It would seem some foresight in at least setting up the structure to capture the data would have been a reasonable response to the unknown, particularly if it varies from the FFCRA payroll item setup.

It would also seem reasonable two months after the passage of the act that, at a minimum, Quickbooks would provide concise communication and guidance across all platforms preferably in email communication to customers so that we do not have to hunt daily through forums for such information.  For instance, if AlexV is correct  and the current flow followed for FFCRA payroll items will indeed continue, then communicate such directly.  Setting up new payroll items specifically for ARPA 60 days after the fact (that are different than the current FFCRA payroll items) for those companies who have had to pay employees under ARPA beginning April 1 will likely create a payroll mess of epic proportions if it requires "fixing" those already paid.

I understand the IRS is still "working on it", but the lack of communication from Quickbooks of any guidance other than "we're working on it" (which is NOT guidance) is tremendously frustrating two months into this new law.

@MJoy_D Thank you for your reply but I don't need to set up Cobra. Please let me know when Quickbooks desktop will address the American Rescue Plan of 2021. Is there a supervisor or someone within Intuit/Quickbooks Desktop that is possibly keeping up with new legislative provisions that impact payroll. Please forward my issue to that person or department. Thank you for your time and attention to this matter.

Hi @swang,

Thank you for your prompt reply.

At this time, the IRS is still working on ARPA. With that said, we at Intuit are also waiting for their update before we implement this new payroll item.

You can keep an eye out for this article: Latest payroll news and updates. A breakdown for each update on QuickBooks Desktop Payroll is on this page, along with their brief description. Rest assured, as soon as this payroll item becomes available, you'll see it listed in the article I provided. 

Post a reply if you have other questions about QuickBooks Desktop Payroll. I'll take care of them for you.