QuickBooks Desktop Payroll: Payroll Tax Deferral for EEs per Executive Order

Thanks for visiting the Community, @vg4. I can understand the need to be aware of the exact date of implementing the new payroll tax cut in QuickBooks to prepare for your next payroll. 

At this time, we don't have a specific timeline as to when this will be available in the program. But rest assured our engineers are working on it. By then, the system will automatically catch up on the taxes once this policy takes effect. 

In the meantime, I recommend visiting our Firm of the future to learn more about the latest news and product enhancements.

I'd also suggest visiting the QB Desktop Articles hub to get help on common and related topics about payroll. 

Please let me know if you have additional questions. We're always here to listen and help. 

@katherinejoyceO 

So, the official Intuit response is...you'll get around to it someday and your customers should just wait until that magical day...someday?

The program went into place YESTERDAY.

And stop promoting your useless "resources" because they do not respond in any way, shape or form to these CRITICALLY TIME-SENSITIVE and very specific questions.

Your customers PAY you as a payroll processor...you DO remember that, right?   SUPPORT them (for a change).

While Intuit should, IMO, have more to say on this, I will note that it's not currently possible for Intuit to implement a solution - likely to even start doing so.

This is because the SSA and the IRS haven't even implemented/written the details and instructions on what employers are actually supposed to do.  There is only a draft of a 941 with no instructions.  There is not even a draft of a W-2 that can handle this.  There is really nothing so far for Intuit to build, it would seem.

Also, if it helps, it appears the whole thing is optional for an employer.  You don't actually have to do anything different if you don't want to. (And that would be my recommendation.)

IMO this whole thing is sort of a shell game: Deferring employee's Social Security for one quarter, then doubling the tax next quarter on the employee (which is basically the proposal), somehow does not seem that helpful to me.

See this page for more details https://www.bdo.com/insights/tax/compensation-benefits/irs-addresses-the-president%E2%80%99s-executi...

Hi @BigRedConsulting 

Thanks for the BDO article.  While our company does NOT want to participate in this "program" - and we are encouraged that more and more companies are declaring that they are not participating, I guess I am just trying to prepare for it to become mandatory.  When I see companies declare that it is not mandatory, I want to ask..."based on what authoritative guidance?".  Because the IRS guidance was silent on this matter...so people are making an assumption....based on nothing.  The notion that it is optional for companies to participate is just wishful thinking based on "I saw it on the internet so it must be true" mindset.

Look, I *totally* agree with you that this program is a total sham and - I'll take it one step further - a political ploy.  And as long as most businesses are opting-out then it seems we have a widespread consensus decision based on inaction.  So, perhaps I shouldn't care because it seems the poll of intelligent business opinion is going the way I would prefer anyway.  Given the opportunity our company would rather not participate as well.  I was just thinking that we aren't going to have a choice in the matter.  Perhaps time will tell.  That said, payroll processors still need to be ready to support their customers should they wish to do it or should it become mandatory somehow.

OMG... @BigRedConsulting You are AMAZING!  FINALLY...someone answers the question.

THANK YOU.

Our company will not participate either.  I have read the above discussion over the last month and I have not found where Intuit states the update will not be automatic.  We, like most  companies posting on this site,  will opt out of the deferral and will not want the update. So, how is Intuit going to assure those of us opting out, our payroll will not be updated?  Hopefully, this forum is not the only notification site.  

Thanks for joining the thread, @glacoste,

We acknowledge your decision to not participate with the Presidential Executive Order allowing employers to defer employee's Social Security taxes. However, we're unable to provide the confirmation whether or not the option to opt out will be available any time soon. Rest assured, our developers are working directly with the IRS to ensure any release is in line with their guidelines.

Just so you know, our payroll updates are automatic. Whenever there are changes to payroll or updates from the IRS or state agencies, QuickBooks downloads them automatically as soon as they are available over the Internet. You will see this in our FAQs on QuickBooks Payroll updates.

We will be posting in-product updates once the update is final, so you're notified with what changes are implemented. See this link to be updated with our payroll updates: Latest payroll news and updates.

In the meantime, you can continue with your regular payroll processing and we'll take care of any adjustments needed once this is available in our software.

We appreciate your patience. Stay tuned to our updates using the link I shared or visit this thread for additional information. I'll be right here if you need anything. Have a good one!

No need to be rude. This person is a spokesman doing their job.

@Jen_D 

RE: "We acknowledge your decision to not participate with the Presidential Executive Order allowing employers to defer employee's Social Security taxes. However, we're unable to provide the confirmation whether or not the option to opt out will be available any time soon."

Well, it's not possible to have an option to opt out when there is nothing yet to opt out of.  And in any case, based on the law you HAVE TO offer such an option as that is how this will work.

Are you going to resolve this problem?  I want to defer. If not I need to drop your service.

I’d like to defer my payroll tax too. My payroll manager says Intuit is holding the process up by not informing them on how to do it. My payroll department is avoiding any steps to initiate this tax cut in fact they are adding their personal insight as to why it’s “a really bad idea”. And they base that on what Intuit is telling them. 

Then I find this: 

https://quickbooks.intuit.com/learn-support/en-us/employees-and-payroll/deferral-of-employee-social-...

im not interested in personal opinion from Intuit or my payroll department. I’m interested in having this cut. 

what can I do? 

The easy / temporary fix would be to add the EE portion to your EE's paycheck.  For example on a $100 payroll, add $6.20 to the check for now.  Even better, what I am proposing is adding the 6.2% back to the paycheck for the EE portion of SS, then subtracting it back out and holding it is a savings account which will be paid to EE's when Trump forgives the tax...otherwise this savings account will be used to pay back the 6.2% in 2021.  It's basically free money to the EE's once forgiven.  Who wouldn't want a bonus in 2021...FREE MONEY!

I don't think this will be forgiven. But let's pretend that in a perfect world, it IS forgiven.  If that happens, then in 2021 , all the employees who did NOT defer would be entitled to a refund or a credit on their tax return  for the monies they COULD have deferred, but didn't, correct ? 

That seems to be the fair solution.  Otherwise, how in the world would it be legal to say that some taxpayers are not responsible for those taxes during the deferral period, but others are ? 

I would like to discuss the fact that the IRS info specifically says deferral of the employer's portion, not the employee's portion! So that means the employee would not see a bigger paycheck. From the IRS official website:

1. What deposits and payments of employment taxes are employers entitled to defer?

Section 2302 of the CARES Act provides that employers may defer the deposit and payment of the employer's portion of Social Security taxes and certain railroad retirement taxes. These are the taxes imposed under section 3111(a) of the Internal Revenue Code (the "Code") and, for Railroad employers, so much of the taxes imposed under section 3221(a) of the Code as are attributable to the rate in effect under section 3111(a) of the Code (collectively referred to as the "employer's share of Social Security tax").

The employer's deferral is from the CARES Act while the employee's deferral is from the president's Executive Order. Two different documents.

The majority of my employees only work 2 months a year (Sept/Oct), how can this deferral be back-dated/adjusted when they are no longer receiving a paycheck?

You have a few options:

1. Don't participate in the deferral. It's the employer's choice to participate.

2. Add a Custom Addition Payroll Item that is not subject to Social Security tax. For each employee, put the amount that was withheld for their portion of Social Security. This will add to their wages and adjust their Social Security & Medicare wages. Then run an unscheduled payroll. Mail or direct deposit these amounts to your employees. 

a. If you have already deposited your FICA taxes, then subtract these deferrals from your next deposit or get a refund when you reconcile your 941/944. 

Where did you get that info & why is it not on the IRS info site?

I have called Quickbooks multiple times and talked to different people. They tell me that they have contacted IRS and their 'engineering department' is working on it. One of them claimed IRS didnt clarify the guidelines and I said I can see it published online and I can send it to you. Another one tried to convince me that this is only optional and not good anyhow. I said I want this option. This is all very frustrating. Our company had to pay 13K tax that we may not had to. In this COVID economy this is terrible. I am not sure why they are not following Presidents plan. Is this political? Very disappointing.

If you don't have the $13K now, are you going to have it next year when you have to pay it back?  This is not a tax cut, it's only a deferral.

This last payroll no payroll taxes were taken out at all. Not just Social security. Did something else go wrong?

Hello there, @Tours. 

Thanks for joining in this thread. I don't see any reports in our records about taxes not calculating.

To make sure correct taxes are calculated on your payroll, I'd recommend you download the latest payroll tax table in QuickBooks Desktop.

Then, let's revert your employee's paycheck to refresh your payroll information and for the taxes to calculate. 

Here's how:

1. Open your employee's Payroll Information.
2. Right-click the name of your employee highlighted in yellow. 
3. Select Revert Paycheck. 

For future reference, read through this article:  QuickBooks Desktop calculates wages and/or payroll taxes incorrectly. It gives you more insights about general troubleshooting to help fix errors in the payroll tax calculation errors.

Feel free to message again if you have any additional questions. We're always delighted to help. 

Form 941 instructions (irs.gov) and Federal Registry (federalregister.gov) are good resources.