How can I set up credit or refund on what was already paid for Deferral Social Security Tax (COVID-19)?

esolutionfan · ‎June 28, 2020

I found this great post to do the deferral social security tax on my 941 filing yesterday

https://quickbooks.intuit.com/learn-support/en-us/internal-revenue-service/track-your-deferral-payme...

This is very helpful!! Many thanks to QB community.

My questions is how to get the credit or refund on those social security tax I have already paid between Mar 27th and June 27th. Can I do the adjustment on 2020 Q2 940 filing?

Thanks a lot and take care!!

Rasa-LilaM · ‎June 28, 2020

It's great to see you in the Community, esolutionfan.

Let me share some information about getting a refund for the paid Social Security tax.

The employer should first reduce the remaining federal tax deposits for wages paid in the same quarter to zero. If the reduction in deposits doesn't equal to the leave wages, you can process the Form 7200 Advance payment of Employer Credits Due to Covid-19.

This way, you can claim for the advance credit for the remaining qualified leave wages. For more information about the process, check out this article and proceed to Number 40: COVID-19-Related Tax Credits: How to Claim the Credits FAQs.

If there's anything else I can help you with, let me know in the comment box. I'll get back to answer them for you.

View solution in original post

Rasa-LilaM · ‎June 28, 2020

It's great to see you in the Community, esolutionfan.

Let me share some information about getting a refund for the paid Social Security tax.

The employer should first reduce the remaining federal tax deposits for wages paid in the same quarter to zero. If the reduction in deposits doesn't equal to the leave wages, you can process the Form 7200 Advance payment of Employer Credits Due to Covid-19.

This way, you can claim for the advance credit for the remaining qualified leave wages. For more information about the process, check out this article and proceed to Number 40: COVID-19-Related Tax Credits: How to Claim the Credits FAQs.

If there's anything else I can help you with, let me know in the comment box. I'll get back to answer them for you.

esolutionfan · ‎June 28, 2020

Thank you so much for your help!! It's very useful.

esolutionfan · ‎June 30, 2020

One question regarding from 7200: which line should I put the social security tax credit? Line 6?

esolutionfan · ‎June 30, 2020

One question regarding from 7200: which line should I put the social security tax credit? Line 6?

@Rasa-LilaM wrote:
If the reduction in deposits doesn't equal to the leave wages, you can process the Form 7200 Advance payment of Employer Credits Due to Covid-19.

JamesDuanT · ‎June 30, 2020

Thanks for getting back to us, esolutionfan.

The amounts reported on Line 2 will be used by IRS to verify that the credits are paid to the correct employer. The Taxable social security wages should be entered in column 1 for line 5a of Form 941-SS. I'd agree that the tax credit is likely to be entered on Line 6.

To know more about the details, you can use this link for reference: Instructions for Form 7200 (03/2020).

In addition, I'd recommend reaching out to your accountant regarding this matter. They are well-versed of the submitting forms and ensure that you're filing them correctly.

We'll be right here if you need anything else. Stay safe!

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How can I set up credit or refund on what was already paid for Deferral Social Security Tax (COVID-19)?