I have set up my payroll using the "HOW TO TRACK PAID LEAVE AND SICK TIME FOR THE CORONAVIRUS" Quickbooks tip sheet. However, after running payroll with only FMLA pay, it is showing that I have a federal tax liability to pay. It is my understanding that I should have a credit of the FMLA wage paid plus employer Social Security and Medicare. I paid $400 in FMLA with employer tax of $30.60. My QB federal liability is showing $61.20. Should it not show a credit of $430.60?
Glad to see you in the Community space, @Tessnali.
The tax credit should be recognized by QuickBooks automatically. This should reduce your due taxes or liabilities.
To ensure correct calculation, can you provide me a screenshot on how you track the payroll item? You can include as well the credits and breakdown of the taxes on your Pay Liability window. This way, we can verify and investigate this further.
Please know I'll continue to stick by your side and help you decipher this issue. I look forward to hearing from you again.
Thank you, Tessnali, for providing those screenshots. You are headed in the right direction and have done everything correctly. The FFCRA additions items are supposed to be exempt from the Social Security ER portion. Our Tax compliance and our engineers are aware and working on a solution. It should be fixed in the next payroll update, which is expected on 4/23/2020. If you need any clarifications or have additional questions, please reach out to us. Thank you.