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Level 1

Processing payroll check for National Paid Leave Employee

Processing my first payroll check for National Paid Leave Employee.  I created the accounts, per the instructions given in the, 'HOW TO TRACK PAID LEAVE AND SICK TIME FOR THE CORONAVIRUS' article. I added the National Paid Leave EE payroll item in the employee profile on the Payroll Info / Additions, Deductions and Company Contributions screen.  Do I need to add the other payroll items on that screen also?  The company pays for employee health insurance and some employees pay for optional family or dependent coverage.  Do I need to remove the Company Health Contribution and Employee Paid Health Deduction?  Do I need to add the National Paid Leave Health Premium Addition and that be the cost of company health contribution and employee paid health deduction?  What about the National Paid Leave Medicare payroll item?  When I put in the hours for the national paid leave payroll item, it does withhold federal, medicare and social security taxes from the employee, company contributions for social security and medicare, no federal or state unemployment taxes.  The Payroll Liabilty balance report shows the amounts paid by employee, company medicare is matched, but company social security is reduced.  Am I doing this right?  I feel like I am not doing something right.  Please HELP!!!

11 Comments
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QuickBooks Team

Processing payroll check for National Paid Leave Employee

I appreciate the detailed information you've shared, @AMG_GarrettDemo.

 

Yes, you'd want to make sure that the payroll items you've created are added in the run payroll screen. I can guide you on how to do it.

  1. Go to the Employees menu.
  2. Choose Pay Employees.
  3. From the Enter Payroll Information window, select Open Paycheck Detail to make modifications to the paycheck.
  4. In the Earnings window, remove all existing items.
  5. Other Payroll Items, add the FFCRA payroll items you set up in Steps 1 and 2 that are applicable to your employee’s situation.
  6. Next to each used:
    • National Paid Leave Employee/National Paid Leave Family: Add the employees’ hourly rate and quantity of hours for the pay period. 
    • National Paid Leave FMLA: If applicable, add the appropriate amount, review the guidelines at the top of this article.
    • National Paid Leave - Health Premium: Add the National Paid Leave - Health Premium using the same amount as your normal company-paid health insurance premium unless it was prorated. Leave your Health Insurance company contribution item as you will still need it to track the amount to pay to your insurance company.
    • National Paid Leave & Medicare Credit: Add the same amount you see under Company Summary next to Medicare Company.
  7. Select Save & Next to repeat for all employees then select Save & Close.
  8. When the checks are ready to be created, select Continue.
  9. Click the Create Paychecks button.

On the other hand, deciding whether you'd remove the Company Health Contribution and Employee Paid Health Deduction depends on your company policy. You can read through these articles to learn more about the FFCRA and the other is a detailed step-by-step break down of how to set up your employees. 

Lastly, I'd recommend consulting with an accountant or a Tax-professional. This way, you'd be guided accurately in setting up and processing your payroll. 

 

Should you have other questions or concerns, feel free to click the Reply button below. The Community and I are always here to help. 

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Level 1

Processing payroll check for National Paid Leave Employee

Employers are not required to pay social security tax on the Family First Corona Virus Relief Act (FFCVRA), but the employee is required.

 

"Note: There is no credit for the employer portion of OASDI tax, also known as social security tax, that Eligible Employers are required to pay on the qualified leave wages because the qualified leave wages are not subject to this tax."

see #10: https://www.irs.gov/newsroom/covid-19-related-tax-credits-general-information-faqs

 

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Level 1

Processing payroll check for National Paid Leave Employee

I have an employee that received National Pay Leave Employee that also has Premium Only Plan/125 deductions. I can't include those pre-taxed deductions to apply to the Payroll Item : Addition called National Paid Leave Employee. Can anyone help me with this? Thank you in addvance!

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Moderator

Processing payroll check for National Paid Leave Employee

Good day, @anebooks3,

 

May I know which part of the set up are you stuck? Can you share some screenshots so I can guide you further with the steps.

 

The steps shared by IamjuViel is normally the correct way to track the employees NPL. For further guidance, use the steps found in this article: How to track paid leave and sick time for the coronavirus?

 

I'll be waiting for your response here, as I want to make sure this is taken care of. Have a good one!

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Level 1

Processing payroll check for National Paid Leave Employee

Hi @Jen_D ,

 

Thank you for responding. Upon trying to do a sample to upload without divulging the employee's personal information, QB deducted the pre-tax deductions (Premium Only Plan/125) correctly. Yay! I don't know what I did wrong the other day. Have a great weekend! And thank you again!

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QuickBooks Team

Processing payroll check for National Paid Leave Employee

Good Evening, @anebooks. 

 

Awesome! I'm so glad that your pre-tax deductions (Premium Only Plan/125) were deducted correctly in your QuickBooks account. You were already on the right track. There's no need to worry. The QuickBooks Community is always here to have your back. 

 

Here are a few articles that may come in handy for your business: 

 

 

We're committed to developing easy to use financial tools that help you today and grow with you tomorrow. If you have any other questions or concerns, just let me know. I'll always be around to help. Hope you have a fantastic weekend! 

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Level 2

Processing payroll check for National Paid Leave Employee

If the part of the paycheck is 16 hours out of 80 hours, will the Employer's Portion of their Health Ins Premium Health Credit automatically calculate; or, do we need to calculate and add it?

Thank you,

Cheryl

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Level 2

Processing payroll check for National Paid Leave Employee

Is the National Paid Leave - Health Premium only for tracking purposes since we have to pay the full premium to the Insurance company?  How does this work?  Do I enter the name of the Insurance Company we normally pay on this "National Paid Leave - Health Premium" payroll item?

 

Thank you,

Cheryl

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QuickBooks Team

Processing payroll check for National Paid Leave Employee

Thanks for joining this thread, @CAC3. I'm here to add more information about the employer's Portion of their Health Ins Premium Health Credit.

 

Based on this article: How to track paid leave and sick time for the coronavirus under National Paid Leave - Health Credits, you'll need to manually track this amount if you're contributing to an employee’s health insurance during the time they are being paid under the FFCRA provisions. Then, track this amount so the credit will be applied to your federal tax liability. 

 

For future reference, read through this article to learn more about how to pay employees under the Family First Coronavirus Response Act

 

Let me know if you have additional questions. We're always delighted to help you again on your next posts.

Highlighted
Level 2

Processing payroll check for National Paid Leave Employee

I would think that since the Health Premium credit is only for tracking purposes and only for the Employer's portion of the premiums paid, that you would only enter the item in the employers side of the paycheck, which would not impact the taxes generated on the Employee's paycheck.  Correct?

Also, my 2nd question has to do with the item itself.  Since I need to pay the premiums, I don't want to reduce the liability amount to the Insurance Agent.  So, is the Health Premium Credit PR item only a tracking item; or, should I enter the Insurance Agent that I normally pay on this item so that I pay the correct amount to the insurance company by combining all the items [what the employee paid and the two items that reflect the employer's portion?  So, if I only enter the portion that pertains to the COVID Sick Pay in the item and do not change the amount in the actual Employer's portion of the premium, that is one angle.  However, if I need to adjust the Employer's normal item down and the Credit up, I would need to enter the Insurance Company in the new item to allow my check to the insurance company to be the correct amount.

Hopefully this question makes since.  As we are running payroll today, I hope someone can answer this today.  If not, I can adjust the paycheck after the fact.

Thank you,

Cheryl

Thank you,

Cheryl

Highlighted
Level 2

Processing payroll check for National Paid Leave Employee

Thank you,

I just posted a more detailed question as far as entry of the credit item on the paycheck, calculations, do I subtract the amount from the normal item for the company's portion of the premium, etc.

Thank you,

Cheryl

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