How do I add the new Addition tax tracking type for the Families First Coronavirus Response act?

Hi First Coronavirus Response Act. We released a detailed article about setting up QuickBooks Desktop to be able to use the  FFCRA tax type.  Just follow the article to setup the tax types, and when you run your payroll use them in place of the pay types. If you need further assistance, just let me know I'll be more than happy to help. 

I read the post titled
“How to claim my tax credits under the Family First Coronavirus Response Act”

we use QB assisted payroll and all my tax liabilities are paid through/by QB. How do I make sure that QB applies my tax credits? 

can you also clarify what instructions do I follow when setting things up? The instructions for desktop payroll, Intuit Full Service Payroll, or QuickBooks Online Payroll. We process payroll from our desktop using Premier 2018 and then upload it to QB. 

I was able to figure out that a payroll update fixed a lot of issues however I still can not find clear instructions that QB will apply the credits for me because I use assisted payroll. Can someone clarify if assisted payroll will take the credit and apply it for me internally?

Hello there, @SGL.

For clarification, once you've set up your QuickBooks account for this process, you'll get the tax credit after you paid your employees paid leave or provide health benefits under the FFCRA. You can run your Payroll normally and QuickBooks will do the rest. You can refer to my colleague's @Steve_C post for instructions on how to set it up.

If you have any other questions or concerns, please don't hesitate and reach back out to me! Wishing you and your company health and safety.

Just clarifying that if we have set up the codes per the article and we have assisted payroll - QB will take care of the tax credits and applying them?

Hello there, @DMC10.

Yes, that's correct. Once you've set up your Payroll with the codes under the FFCRA, then you can run Payroll normally and QuickBooks will take care of the tax credits for you!

Thank you.  Is there a report I can run to see the credits and how they are being handled?

Hey there, @DMC10. 

Thanks for reaching back out to the Community. After looking to see if this report is an option in QuickBooks Desktop, I've discovered that it isn't available at this time. In the meantime, you can check out this article that will tell you the information you need to know about the Families First Coronavirus Response Act. 

Remember, I'm only a post away if you need me. I'm always here to lend a helping hand. 

The account creation mentions a liability account but does not give instructions on how to create it.  Later in the process it seems to need one.  Please explain.

In Step 4, bullet #4, there is no National Paid Leave Credit on the Other tax dropdown. QB Desktop Pro 2017.

Thank you for joining the thread, Chuck570. I'll be delighted to help you understand the liability accounts when setting up the tax items. The liability account that you mentioned is merely asking which liability account you would like to track the company contributions to be paid.

In this case, if you're on Steps 3, it would be the expense account you created in Step 2 to choose in the drop-down for the liability account (if you named COVID 19 Expense as the example). 

If you are on Step 4: Setting up a new tax item, it is asking you here to select Payroll liability for the liability account, which is different from Step 3.

If you need any other clarification, please don't hesitate to reach out to me. Keep me posted!

My question is the same as posted by sldq. There is no National Paid Leave Credit appearing in the Other Tax drop down box. We are instructed to setup this item in step #4, which is separate from the Company Contribution type we are to set up for National Paid Leave Health, the last item mentioned in step #3. I just downloaded a full payroll update again, but still not there.

Will this item automatically track all amounts entered in paychecks for the other NPL (Employee, Family, etc.) items as a tax credit and show up on the tax liability payment screen?

Our QuickBooks Assisted Payroll support got all the information you need, arat.

They can address your concern about the Other Tax dropdown.

Here's how:

1. Go to Help, then select QuickBooks Desktop Help.
2. Select Contact Us.
3. Enter your concern, then select Continue.
4. Select from Start messaging or Get a callback.

You can also reach us here:

• Do It Yourself
• Assisted

Note that there's an adjustment on our support hours due to COVID-19. We're open from 6 AM-6 PM PT Monday-Friday.

I followed the instructions that were given but when I ran payroll it still deducted Employer Social Security tax and had it in the liability to pay.  I am not sure what I have done wrong but would appreciate any assistance.

same question as lcooper1. Will Intuit be fixing the tax tracking on the NPL payroll items soon?

Hi there, lcooper1. I understand there's a lot of changes taking place during these times. The Community will be here to help with any questions you have.
 

Our engineering and compliance teams are familiar with the Families First Coronavirus Response Act (FFCRA) and actively working to have QuickBooks setup for this process. Once we release our next payroll update, the Social Security tax will record properly when you run payroll. Thank you for your patience as we work to support you and your business.
 

Here's an article that goes over how you can check for payroll updates: Verify that a tax table update is downloaded and installed
 

If you have any questions, feel welcome to reach out to me anytime. Have a wonderful day!

So now that the payroll update has happened and the company social security is being removed from paychecks using this payroll item, what do we do with the paychecks that were created before you fixed the payroll??  Do we go back and edit each one and remove the company social security??

Thanks for joining this thread, @lgrbook.

Let me share information on how does the CARES Act tax deferral work. These are the following guidelines:

• Eligible employers may defer the payment of the employer share of the Social Security taxes that accrue from March 27, 2020 through, and including, December 31, 2020.
• The payment includes 6.2% of wages up to the Social Security ceiling.
• 50% of the deferred Social Security taxes are due by December 31, 2021, with the remainder due by December 31, 2022.
• The deferral of Social Security taxes is not available for taxes that are due to be deposited after you receive debt forgiveness under the Paycheck Protection Program.

If the loan is already forgiven, then the deferral for Social Security is not available. However, if the loan is not yet forgiven and you think that the deferral is missing, I'd suggest contacting our Payroll Support Team. They can pull up your account securely and further review the set up for you.

Here's how:

1. Open QuickBooks.
2. Go to Help, then select QuickBooks Desktop Help.
3. Select Contact Us.
4. Give a brief description of your issue, then select Continue.
5. Click Start Messaging.

Just a heads up, we have limited staffing and have reduced our support hours to 6 AM-6 PM PT Monday-Friday due to COVID-19. We will resume normal hours as soon as possible. 

For additional information about deferral, please check out this article: Track your deferral payments for Social Security tax payments. It also provides steps on how to set up the payroll item to track the deferral.

I've also added these articles for additional reference about FFCRA loan:

• Paycheck Protection Program loan forgiveness
•  Families First Coronavirus Response Act.
• Pay employees under the Family First Coronavirus Response Act

I'm always here to help if you have any other QuickBooks related concerns. Have a good one.

LGRbook's question was not in regard to the PPP but the changes in how QB desktop payroll program handled the employer's portion of the Social Security tax regarding paid sick leave and expanded family and medical leave provisions of the FFCRA .  Originally, QB "paid" the employer's portion of SS (weekly filer).  With the latest update, it now does not. The latest payroll update states:

How do I correct prior paychecks (and get back) the employer tax paid  that was paid in error.

Thanks

Welcome to QuickBooks, Easyas12.

You can delete and recreate the paycheck. Before doing so, please create a backup copy of your company file. Moreover, let me guide you on how to delete and recreate the paycheck.

1. Click on Employees.
2. Choose Payroll Center.
3. Click on Start Unscheduled Payroll.
4. Set the Pay Period Ends and Check Date fields.
5. Choose the employee that was underpaid.
6. Select the Handwrite & Assign check numbers radio and enter the number.
7. Click on Open Paycheck Detail.
8. Mark to select the Enter net/Calculate gross checkbox.
9. Enter the amount in the Check Amount field.
10. Click on Save & Close.

However, if the tax has already been paid, I recommend contacting the state agency and inform them that the tax was paid in error. 

For future reference, you can also modify or void a liability check that has not been transmitted. Here's an article for more information: Modify or Void Pay and Liability Checks.

If there's anything else you need help with, let us know so we can get back to you.

I appreciate your reply -- But does that really address my question?

Hello there, Easyas12,

Correcting prior paychecks is done by deleting and recreating it.

After recreating the paycheck, we'll need to adjust the payroll liability to ensure the taxes are calculated correctly. If you have filed the taxes for that quarter and there are changes on your tax liabilities, you'll need to send an amended form. Since we don't support this type of forms, we'll need you to manually file them to the IRS or to the state agency. 

I'll be here if you have additional questions.

Again, it is a specific question regarding federal taxation.

The national leave started effective April 2nd.  Federal forms are quarterly.

Since there was an error in QB payroll, I am therefore required to recreate the paychecks and adjust payroll liability?

The only change is on the company side -- why do I need to recreate the check???

Hi, Easyas12.
 

You can correct any errors made on an employee’s check in your books. To do this, there are a few different options:

• Edit a paycheck - This can be done as long as the paycheck hasn't processed yet.
• Delete a paycheck - Going this route will remove it from your payroll. This option can be used if it hasn't gone through.
• Void a paycheck - Your records will be changed and the dollar amount for the one you're voiding will be updated to reflect a total of zero, then adjustments would need to be made to balance your books.

Here's a detailed resource to help guide you through the process: How to edit, delete or void a payroll check in QuickBooks Desktop
 

I'm here to help if you have any other questions. Feel more than welcome to reach out anytime. Have a wonderful day!