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psondmd
Level 1

Hi I deferred some payroll taxes from the CARES act. I am ready to pay those deferred taxes now. How do I process that through Quickbooks online payroll?

 
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FritzF
Moderator

Hi I deferred some payroll taxes from the CARES act. I am ready to pay those deferred taxes now. How do I process that through Quickbooks online payroll?

Welcome to the Community, @psondmd.

 

There are a few steps to do to pay those deferred payroll taxes in QuickBooks Online (QBO). Let's begin by checking how much taxes you've deferred.

 

Here's how:

 

  1. In QBO, go to the Reports menu at the left pane and scroll down to Payroll.
  2. Select Payroll Summary by Employee.
  3. From the Date Range drop-down, pick Last Year.
  4. In the Employee drop-down, choose All Employees.
  5. In the Work Location dropdown select All Work Locations.
  6. Display columns by Employee.
  7. Hit Run Report.
  8. In the row EE SS Deferral Credit will be the total for each employee.

 

After that, you need to collect the deferred amount back from the employee. Here's how:

 

  1. Go to the Payroll menu at the left pane to get to the Employees.
  2. Select the employee's name.
  3. Click Edit (pencil) next to Pay.
  4. In the Does [employee] have any deductions section?, tick + Add a new deduction , or + Add deductions.
  5. From the Deductions/contribution dropdown, choose New deduction/contribution.
  6. In Deduction/contribution type dropdown, pick Other deductions.
  7. In the Type dropdown, select Other after tax deductions.
  8. In the Description enter: EESS Deferral Repay or enter a name of your choice.
  9. In the Amount per pay period section, enter the repayment amount per paycheck.
  10. In the Annual maximum section enter the total amount the employee deferred. This will make sure once this total amount is collected, the deductions will end.
  11. Hit  OK, then Done.
  12. Repeat these steps for each employee who elected to defer their Social Security.

 

Once done, you may now proceed with paying the amount to the IRS and creating a W-2c for the employees. Refer to this article and proceed to steps and for further guidance: Collect back and pay the Employee Social Security Deferral in QuickBooks.

 

Reach out to me in the comment section below if you have any additional questions or concerns. I'll be more than happy to help. Have a great day!

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