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Level 3

COVID-19 Leave Payroll Items Tax Is Wrong

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.

10 Comments
QuickBooks Team

COVID-19 Leave Payroll Items Tax Is Wrong

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!

Level 3

COVID-19 Leave Payroll Items Tax Is Wrong

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.

QuickBooks Team

COVID-19 Leave Payroll Items Tax Is Wrong

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.

Level 3

COVID-19 Leave Payroll Items Tax Is Wrong

I am an Enrolled Agent i.e. tax professional and an Advanced Proadvisor, trying to help my clients.

 

You are still not correct per the IRS FAQ. The credit is only available for the gross leave wages, health insurance costs and ERs medicare tax on the leave wages.

 

There is no credit for the ERs SS and that is because ERs SS is not to be charged on these wages. Please read s7005 FFCRA. See paragraph 5 of the Overview of Paid Sick Leave Refundable Credit and paragraph 2 of the Overview of Paid Family Leave Refundable Credit in the FAQs which repeat what I am saying.

 

Who can I escalate this to within Intuit otherwise you will have thousands of payroll customers who will be paying over too much payroll tax and calculating the wrong tax credit.

QuickBooks Team

COVID-19 Leave Payroll Items Tax Is Wrong

Hi AZEA. Thanks for the response, I've inputted this information to the Payroll Group and will notify you as soon as I hear back from them. If there is anything else you would like me to mention feel free to add it. I know times are stressful so I do appreciate the patience. 

Level 1

COVID-19 Leave Payroll Items Tax Is Wrong

Can someone there PLEASE fix this issue.  Our accountant says to put the problem back to Intuit.  Per IRS rules there should be NO ER Social Security paid towards these sick wages.  There is NO way to deselect that when creating the payroll item.  I have payroll due tomorrow and the Employer is refusing to pay anyone unless this can be worked out.  

Level 1

COVID-19 Leave Payroll Items Tax Is Wrong

Is there a fix for the Company portion of Social Security tax on the FFCRA leave pay yet?

According to the IRS qualified leave wages are not subject to employer portion of the social security tax yet the set up I followed is calculating that tax and including it in our payroll liabilities.   

Will Quickbooks have a retroactive fix to compensate for the that portion of the liabilities that have been calculated incorrectly and already been paid?

I have the newest tax tables and latest update to Quickbooks desktop and am still experiencing the error.

 

 

QuickBooks Team

COVID-19 Leave Payroll Items Tax Is Wrong

Hello there, @fountainlandscaping.

 

Changes are coming daily to QuickBooks Online Payroll, Intuit Online Payroll, and QuickBooks Desktop Payroll. Thank you for your patience as we work to support you.

 

 Our payroll teams here at Intuit are working quickly to create the appropriate pay types so that you can track and report hours towards this tax credit for your small businesses. 

 

This time our Payroll already release some resources on how to track paid leave and sick time for the coronavirus.  With QuickBooks Desktop Payroll, you can ensure your employees have the money they need, and you comply with the Family First Coronavirus Response Act (FFCRA).

 

To make sure that you set up correctly, you can check this article:  How to track paid leave and sick time for the coronavirus. IT provides a step-by-step process and explains the types of paid leave.

 

You can browse these articles it provides updated information on what to do and know about Families First Coronavirus Response Act:

 

 

Be sure to leave me a reply if you have additional questions. Stay safe and healthy.

 

Level 2

COVID-19 Leave Payroll Items Tax Is Wrong

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

QuickBooks Team

COVID-19 Leave Payroll Items Tax Is Wrong

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!

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