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wsiv
Level 1

National Paid Leave Credit

I just set up the payroll items and other tax per QB's instructions (https://quickbooks.intuit.com/learn-support/en-us/help-articles/how-to-track-paid-leave-and-sick-tim...) and there is no credit calculated when I create a payroll.  Anyone have this problem and now a solution?

 

Also, the tax tracking associated with the payroll items they have you set up are subject to ER social security, but my understanding is that wages under FFCRA are not subject to ER social security?

 

Anyone get this to work correctly?

103 Comments 103
nan63
Level 2

National Paid Leave Credit

Same problem. No answer yet. 

ADL193
Level 2

National Paid Leave Credit

Same problem on taxes assigned.  

Also when following the instructions on Set up new tax item, I got several screens not mentioned in the instructions.

ltrialto
Level 1

National Paid Leave Credit

Same question, but also wondering where this is going to appear on the W2.  Should it be an hourly wage instead of an addition?

 

chris111
Level 3

National Paid Leave Credit

Same problem, the QB people gave two answers which makes it confusing. attached is the picture of of my payroll. They can't even look at it and say something.

ShelleChristmasCPA
Level 2

National Paid Leave Credit

Sounds like we are all in the same boat.  I believe the pay IS supposed to be subject to ER taxes and then we you go to pay the payroll taxes, it is supposed to be reduce by the payments by ALL ER taxes included SUTA, FUTA, paid leave wages etc.  Also agreed, that the instructions "skip" VERY important selections when setting up the Paid Leave Credit "Other Tax" item.  There is also NO guidance on setting up the actual employee with these items. 

 

If you follow the step by step instructions (& manually enter the ER credit, records it as increasing liab & expense so it essentially duplicates the paycheck). I tried to "trick" it and reverse (assign the exp liability drop down) and (assign the liability in the exp drop down).  This works great for the G/L, but STILL no credit in the Pay Payroll Liabilities screen.  I also made sure to set up the payroll frequency for the Paid Leave "Other Tax" item.  This is going to be an accounting nightmare....any thoughts and comments are welcome! TIA!

ADL193
Level 2

National Paid Leave Credit

I just got off the phone with customer support and they basically told me I had to hand calculate the National Paid Leave credit portion. Then when create payroll liabilities, choose all the 941 portions and create payment, add a line at the bottom for the National Paid Leave credit amount and enter it as a negative.

I'm not sure how this will work for 941 forms and such.  It seems like they created the items just to track these items since it doesn't seem to be calculating anything for us.

 

 

chris111
Level 3

National Paid Leave Credit

Can you guys take a look at my screen shot of this test? if you follow the instructions in the quickbooks article it says to create a item using the addition type of payroll item. but in a post by a QB person they say to create a normal wage payroll item, which is it? also in the tax portion in company summary what do you put in there?

nan63
Level 2

National Paid Leave Credit

I set up the payroll items just as the instructions said, which was to make the pay portion an "addition". 

 

I also set up the tax item for the National Paid Leave credit, but I did not put any numbers in the actual paycheck for the credit because QB is entering it as a positive number instead of a negative.

 

When I go to pay my liabilities, I am going to manually calculate the credit and enter as a negative in the pay liabilities screen. This is not a good way to do it, but it seems to be the only way it can be done unless QB gives more clarity. I personally don't think they have it quite right yet.

 

 

chris111
Level 3

National Paid Leave Credit

which number are you going to put into the credit? is the gross wages that was added in the addition? fica portion? ect.

nan63
Level 2

National Paid Leave Credit

My plan is to take a credit for the wages, the employer portion of social security and the employer portion of medicare tax as well as any health insurance that we have paid for that individual for the pay period.

nan63
Level 2

National Paid Leave Credit

I did forget to mention that it would be the full  amount of wages as long as it doesn't exceed the allowed amount, which is different depending on whether it is for paid sick leave or paid family leave.

Diana402
Level 1

National Paid Leave Credit

I did a chat with someone that spent 3hours tied to my screen only to tell me at the end that I would have to calculate all of it myself.  He didn’t even know about the SS and Medicare credits. I see they updated the instructions today with limits but you will need to keep a watch on hours as well, and additions don’t show qty on the payroll summary.

 

I don’t know why they even bothered to give us new items.  I believe I could have set up something better myself.

ZackE
QuickBooks Team

National Paid Leave Credit

Hey there, wsiv. I understand there's a lot going on during these difficult times. The Community will be here to help.
 

We're currently coming out with daily updates to QuickBooks payroll products. The Families First Coronavirus Response Act went into effect on April 1st, 2020, and we're diligently working to quickly provide our customers will the ability to create appropriate pay types, that way you can track and report hours towards this tax credit for your business.
 

The FFCRA details that if an employee was impacted, and took time off for COVID-19 related reasons prior to April 1st, 2020, then time would have to be tracked as regular sick hours, and it wouldn't be eligible under the act.
 

You can find more information about the specifics, in regard to wages, by reviewing the COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs article from the IRS.
 

Rest assured, Intuit plans to have everything setup for our customers to be able to properly record everything they need to in their books. In the next few weeks, QuickBooks will be helping you apply these credits to your payroll, to ensure you're compliant and using the credits correctly.

You can also keep an eye out for any updates on the QuickBooks Blog.

I'll be here to help if you have any questions.

TedF
Level 1

National Paid Leave Credit

I just edited the National Paid Leave Credit set by Intuit and swapped the 2 accounts. The Liability account is now tagged to an expense account and the Expense account is tagged to the payroll liability account I set up for the credit. I still have to manually enter the credit in the Company Summary section of the paycheck but the balance sheet and the P&L are correct.

chris111
Level 3

National Paid Leave Credit

when i tried to enter a credit in the company summary section it didn't let me change it to a credit and was an add. did you get the same thing?

ADL193
Level 2

National Paid Leave Credit

What you are planning to do is exactly what I spent hours with support to find out. 

I actually had to email them the IRS article on the social security employer portion and the payroll support person had to consult with their tax dept because support did not know about that portion.

ADL193
Level 2

National Paid Leave Credit

According to support you make it an addition.

You can't modify the company portion of taxes in the paycheck itself.  They told me after you create your 941 payment and are reviewing it you put in another line for the credit after the Fed W/h, Soc Sec employee, Soc Sec Employer, Medicare Company and Medicare Employee lines.

On this line you would put in your hand calculated credit amount as a negative, then modify your payment amount.

Here are the instructions they sent to me:

 

 Create a check to pay the payroll liabilities

Once you've figured out how much you owe, you can now ensure that you've created a check to pay the tax liabilities.

Go to the Employees menu, then select Payroll Center.

Select the Pay Liabilities tab.

In the Pay Taxes Other Liabilities section, mark the Federal 941 and other liabilities, make sure the check amount and item list under Payroll Liabilities are accurate, and then select View/Pay.

On the Payroll Liabilities window, select Create.

Go to the Payroll Liabilities tab and enter the National Paid Leave Credit and the amount of the 941 tax liabilities you qualify for based on the Payroll Item Detail Report you created. You'll need to enter the amount of the credit as a negative amount. (If your tax liability is less than the credit amount, the credit can be used in subsequent payroll liability payments.)

Select To be printed if you want to print the check. If you used a handwritten check, enter the check number or other reference in the NO. field. If you pay liabilities by Electronic Funds Transfer (EFT), clear the To Be Printed checkbox and type EFT in the No. field of the liability check.
Select Save & Next or Save & Close.

You’ll see your Payroll Liability Payment Summary and can then review the payments you scheduled, print a copy of the summary, and print checks.

You can re-run the QuickReport to see the difference in the liabilities credit you are still able to claim if your credit was larger than your liability.
 

If you have additional questions about QuickBooks Desktop or the specific topics we discussed, you can go to our Learn and Support website: https://community.intuit.com/quickbooks-desktop to know more, post questions and interact with other QuickBooks users.

Thank you,

Kim

Intuit QuickBooks Desktop Support

 

    

 

This is an automated email. Please do not reply directly as you will not receive a response.

brookedegnan
Level 2

National Paid Leave Credit

I am following this post as the credit is not reflected on the P&L following the current instructions from QB on How to track paid leave and sick time for the coronavirus

 

 

katherinejoyceO
QuickBooks Team

National Paid Leave Credit

Thanks for joining in this conversation, @brookedegnan. I appreciate you for following the instructions posted by @ADL193

 

It could be that the reason why the credit isn't reflecting in the P&L report because of the accounting method you've used. This can greatly impact how transactions are shown on the P&L report. 

 

You use a Cash basis when a certain transaction is paid on the same day. Otherwise, use the Accrual basis regardless if the transaction is paid or not. 

 

I'd suggest you toggle your P&L report page between cash and accrual view. Check out the image below: 

 

Please note that this action will revert to the default basis used once it's closed. Should you want to set your accounting method preferences, refer to the steps outlined in this article: Differentiate Cash and Accrual basis

 

Let me know if you have other concerns. We're always delighted to assist. 

 

 

 

ShelleChristmasCPA
Level 2

National Paid Leave Credit

For the ER credit calc, in addition to the gross payroll, ER share of FICA and health Ins paid for the employee, you will want to include FUTA & SUTA. Wondering if worker’s compensation will need to be included as well. Once QB has the ER credit set up correctly, it’s going to be fun reconciling all this (not to mention the EE hours and limits...)

ShelleChristmasCPA
Level 2

National Paid Leave Credit

Thats funny, I did the same thing and it works great on the GL. Guess it’s a manual calc and entering the credit when we pay the payroll taxes for now...

CAC3
Level 2

National Paid Leave Credit

Thank you for your update on what QB's is doing to help us set up PR to track the numbers.  I too followed the instructions that were posted and it went smoothly until I got to step 4.  I assume that the Liability account and Expense account referred to (see below) refers to the two accounts we set up in the chart of accounts: ie COVID-19 Liability & the COVID-19 Expense in other expenses.  Is that correct?

  1. In the Agency for company-paid liability window, select the agency you pay taxes too from the dropdown, select Payroll Liabilities in the Liability account dropdown, and select Payroll Expenses in the Expense account dropdown, and then select Next.
  2. From the Taxable Compensation Window, select Finish. (also, there was no way to select Finish at this point.  Another screen with taxes checked appeared.)

This is confusing and we do appreciate that you're working on helping us get our PR set up to handle the changes caused by this pandemic.

CAC3
Level 2

National Paid Leave Credit

Hi ZackE,

I couldn't tell if you received by reply to your message.  Here it is again.  Please let me know if you received it and if you can advise me on my questions or reassure me that I did it correctly, I would really appreciate that.

 

Thank you for your update on what QB's is doing to help us set up PR to track the numbers.  I too followed the instructions that were posted and it went smoothly until I got to step 4.  I assume that the Liability account and Expense account referred to (see below) refers to the two accounts we set up in the chart of accounts: ie COVID-19 Liability & the COVID-19 Expense in other expenses.  Is that correct?

  1. In the Agency for company-paid liability window, select the agency you pay taxes too from the dropdown, select Payroll Liabilities in the Liability account dropdown, and select Payroll Expenses in the Expense account dropdown, and then select Next.
  2. From the Taxable Compensation Window, select Finish. (also, there was no way to select Finish at this point.  Another screen with taxes checked appeared.)

This is confusing and we do appreciate that you're working on helping us get our PR set up to handle the changes caused by this pandemic.

brookedegnan
Level 2

National Paid Leave Credit

Thank you for your instruction, I am sure it will help individuals who do not understand the difference between cash and accrual based accounting, however, that is not the issue. To clarify, the new expense account, COVID 19 expenses is reflected on the P&L with the correct total, however, after the tax payment is made taking the National Paid Leave Credit, no credit is reflected on the P&L, factoring in the date of the payroll and the date of the payment.

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