Hello, @stephanie39.

I appreciate you taking the time to attach a PDF and highlight the problem with step 3. I'll make sure we get those steps fixed promptly so other people know to select Neither instead of Calculate this item based on Quantity. In the meantime, you can continue letting other users know the correct steps to follow.

I'm only a post away if you have any other questions or concerns. Take care!

I was using, calculate based on quantity and it was working in our calculations. (for "National Paid Leave Employee")

lol don't even get me started on the debits/credits of the tax credit side and the health insurance piece that are not right based on the default setup from QB.  flat out the tax credit does not reduce the tax liability on the balance sheet, so the balance sheet still shows a company would owe $1000 in payroll taxes due when in reality a credit was used of $750.  

Hoping QB gets all the kinks (including the incorrect taxing of qualified wages by SS and not taking the ER portion of medicare on the credit) ironed out soon! :)

Thanks for the heads up on the Balance Sheet implications!  I haven't even looked at that yet, as I saw the taxes aren't being calculated correctly and, therefore, didn't report any FFCRA wages last payroll.  Which was a real bummer, as we could use that reimbursement...

Hopefully they will stop calculating SS on those wages and start including MC in the reimbursement.  Once they get those things fixed, I can run an actual payroll with FFCRA leave and then tackle the B/S side of things.  I run Online Payroll and Desktop QB, so I'm glad that they aren't attached so I can fix any B/S problems in desktop independently of whatever messed up info payroll is sending over!!!  At least that's what I'm thinking. 

Fingers crossed they will get these issues fixed soon!  Good luck to you, to Intuit, and to all of us!

I run payroll tax liab report. I think QBO 941 amount is wrong. I don't think we need to pay ss and medicare tax (7.60%). Please correct me if I am wrong.  As of today 04/16, I don't see the correction.

Hello, peggy888. 

Thank you for bringing this to our attention. At this time, our engineers are working on an update that will incorporate social security and medicare.
I suggest keeping an eye on the following link as it is updated on a regular basis. 

-  What you need to know about the Families First Coronavirus Response Act. 

If you need anything else, feel free to post here. 

Thank you and have a happy Thursday. 

Do you have an estimate on when this will be corrected? Also, will it retroactively correct payrolls that have already been processed or should we manually correct the calculations? The link you provided hasn't been updated for a couple of weeks so that is less than helpful. 

I've got the details you need about incorporating social security and medicare to the employee's payroll that has paid leave, @Michelle RH. 

The estimated turnaround time to correct this issue is weeks. Rest assured that we will be helping you apply these credits to your processed payroll. That way, we can ensure you’re compliant in using these credits correctly. For more details, see the Use a Federal tax credit to pay for the cost of providing leave to your employees section through this article: Families First Coronavirus Response Act (FFCRA). 

Regarding the link provided by my peer above, the transparency of information is our top priority. Please know that we'll update the contents if there are any changes mandated by the IRS. I recommend visiting their website to get the latest updates on the Coronavirus Tax Relief and economic tax payments. 

Once fixed, I'd suggest running the three reports below to review how many hours you’ve used in these tax credits after running payroll. This is to ensure you're tracking the paid leave accurately. 

• Payroll Details
• Payroll Summary
• Payroll Tax Liability

For more information, see Step 4 through this article: Pay Employees Under FFCRA. 

Please know that I'm here anytime you have other concerns. Stay healthy and keep safe always, @Michelle RH. 

It was calculating just fine for me too when I was using Calculate based on quantity. I voided out a payroll and changed it to "Neither" and I couldn't add anything to it. If we're supposed to use "Neither", where and how can it track how many hours we have for the employee paid leave? I'm not seeing this being remedied for this weeks payroll either. 

Hello Kathi_M,

If you select Neither when setting up the payroll item, you'll have an option to calculate the amounts on Gross or Net pay. In addition to that, you'll need to set the percentage (%) or the actual amount. You can see these options as you click Next when setting up the payroll item. You might also find this article helpful regarding the employee paid leaves: How to track paid leave and sick time for the coronavirus.

Let us know if you have additional questions.

I've already set up the items as indicated in the article you refered to (Desktop Version). When setting up the National Paid Leave Family, if I If I put in 67% when picking "Neither", it won't allow me to put in the quantity on the actual paycheck under Other Payroll Items. I still have to do everything manually under the Employee Summary. So what is the difference if I do it based on quantity, and enter in 67% of his hourly wage under the rate column of the Other Payroll Items section, with his ESP hours he is needing under quantity? It calculates it for me under the employee summary, and the only thing I need to do is keep track of his hours up to 80. Either way, once it gets to that step, it stalls. The number is in my expenses and there it sits. Because it's not being automatically deducted from the taxes I'm to pay on the 941's. I can manually adjust the expense tab on the check that is submitted through EFTPS when I pay my tax liabilities, but I don't know how that will affect any updates to the QB software when it comes out to fix this glitch of the credits. 

Thanks for getting back to us, @Kathi_M.

The reason why you're unable to enter a quantity in the Other Payroll Items when you selected Neither in the payroll item setup is that the 67% rate will be calculated based on the earnings. If you choose the calculate this item based on Quantity option in the setup, the 67% rate will be calculated based on the number of hours you enter on the Quantity column.

Just in case, I'll add these articles for future reference:

• How to track paid leave and sick time for the coronavirus.
• What you need to know about the Families First Coronavirus Response Act.

I want to make sure everything is taken care of for you, so please let me know if you have any other questions or concerns in the comment below. I'll be here to help. Have a good one!

I understand you cannot enter in the quantity when "Neither" is chosen, and that the 67% is based on the earnings listed above in the earnings section...which you don't want to do because then it will double pay the employee. But you are incorrect when it comes to the Quantity and the 67%. 
When you choose the "Calculate this item based on Quantity" option in the set up, and choose 67% for the rate-whether it's in the set up or under the Other Payroll Items for the rate, when you enter the hours in the Quantity column, it gives you a total of 67% of the hours, not the wages. See the attachment. 
This reminds me of the engineer and the user. To the engineer it all looks good on paper, but when the user actually implements it, it isn't working. If you have run an actual payroll using the 67% and it working, please show us. 
Either way, no matter how it gets entered in to Quickbooks, it still isn't automatically deducting it from the tax payments to reimburse us like it should be. And I understand that it could be a few more weeks until that is put in place. So until then, we'll just have to wait. 

Good evening, @Kathi_M. 

Thanks for replying to this thread.

At this time, changes are coming daily to QuickBooks payroll products. Thank you for your patience as we work to support you. We're still working with our engineers to make this as easy as possible. 

Please keep an eye out for any updates in your email and the QuickBooks Blog. You're always welcome to follow up on any related thread here in the Community as well. 

I understand how difficult a time this is for you and your business. Just know, I'm always here to lend a helping hand. Have a good rest of your day!

Hi Kendra,

We run Intuit Online Payroll.  I see that the issues with MC reimbursement and SS not being calculated on FFCRA wages have been resolved - thank you to your team for getting that done!

I don't see anything that helps fix these tax issues from the prior payrolls, where these issues existed.  The reimbursement owed for MC taxes and the reduction in the SS liability from prior periods is not showing up on my tax liability report nor are they incorporated into our tax payment.  Are you still working on an update to get us reconciled for the 2 weeks (we run weekly payroll) where the system wasn't calculating things correctly?

I'm not necessarily looking for a timeline, just want to make sure this is on QB's To-Do list!  Thanks.

Hi @hbrasel,

While we don't have an update about the prior payroll, I recommend consulting our Payroll Team.

They have the special tools that can check your account in a secure environment and assist you further with your prior tax liability.

Please use this link to reach out: Contact Support.

I'll also share with you our page about Intuit Online Payroll for your reference.

Stay in touch if you need help with anything else. I'll be around for you. Thanks for visiting us and have a great day.

I am using the DeskTop version, entered the payroll items per Step 3 and 4, Calculate by Quantity works fine, I can enter the number of hours and the rate of pay (max $25 for the $200 per day rate), but the SS and Medicare issues are still not fixed. And in all the discussion and helpful instructions, it would have also been helpful to add the additional instruction to Run Payroll Setup prior to trying to send payroll, as I got the error "Problem Uploading Data to Service - Sign-On was rejected" [Message Code 2107]. Then went through Payroll Center twice to check the new boxes on the new COVID related entries for the affected employees. Payroll Center then crashed QuickBooks Enterprise ver 18.0 remote hosted, twice, and on the third try I sent payroll and it went through. Is there going to be a form (Full Service Payroll) to have the SS and Medicare funds deducted from the payroll taxes before the 941 funds are sent?

Hello EnterprzRtNet,

Error 2107 means that there is a problem of the company or with QuickBooks. Before we do any troubleshooting steps, I'd recommend updating the following components:

• QuickBooks release version
• Payroll Tax Table version

After those updates, let's unsure that your company file is in good condition. We can do the Verify and Rebuild process to determine the condition. This will fix the issues found on the company file.

Regarding your Full Service Payroll, I'd recommend reaching out to our Payroll Team. They can provide additional details about the forms:

1. Click Help at the top menu and select QuickBooks Desktop Help.
2. Select Contact us and then enter that you get Reminder prompts. 
3. Select Continue. 
4. Choose either to Message an Agent or Talk to a Specialist. 

You can always provide additional details if you need further assistance.

Hi,

I have followed the most recent steps (instructions released on 4/23). I am still seeing some issues with the setup. First, when following the steps to set up National Paid Leave FLMA - when you select "neither" for the quantity, this is an issue because it prevents you from tracking the number of hours an employee has used towards this (400 hours or 10 weeks max). 

In addition, when setting up the National Paid Leave - Health Premium, I'm not sure why the instructions suggest selecting COVID-19 Expenses for both the liability and expense account. The problem comes when I look at my COVID-19 Expense report (to determine how much of a credit to apply to my tax liability), any health insurance premiums related to this account are added in and subtracted out at the same time (creating a net 0 tax liability adjustment).

Finally, I see that the issue of SS being excluded from these leave wages has been fixed. However, there is supposed to be an applicable MC credit relating to these wages, but those amounts are not populating in the COVID Expense report, as it should, per your instructions.

Any idea when these additional updates or instructions will be pushed through? Thanks!

Good morning, @JenT84. 

I appreciate you reaching out to the Community and joining this thread. 

With changes coming daily to QuickBooks Payroll products, we want to thank you for your patience as we work to support you and your business. We're currently working on a solution for the paid leave setup. Once we've made these updates, your paychecks will show the correct reimbursement and Social Security amounts. 

You can keep an eye out for the update on the FFCRA and CARES Acts portion of the Community. 

Please don't hesitate to reach out if you have any more questions. Have a good rest of your day!

I'm still very confused about how to correct the employer share of social security tax for paychecks that were created prior to the last payroll update.  Does anyone have an answer?

Hi KathyN. The best way to fix any checks that ran during the period of awaiting the update would be to delete or void those checks and simply recreate them as paper checks to properly record the liability. Here's how to track down and delete the checks:

1. On the left panel, click Employees.

2. Click an Employee, and go to the Paycheck list tab at the top

3. Choose, and click a Paycheck.

4. ***Notate the amounts and dates on the check for when you recreate them***

5. At the bottom menu, click Delete or Void.

6. Put a Check Mark in the I understand that this action cannot be undone box.

7. Click Delete Paycheck.

Now, complete this for any checks that were processed prior to the payroll update. You can then recreate the checks like with the information you took down from them.  Let me know if there's anything else I can do for you and have a great day. 

A warning for those that do this, on my checks the net pay was different when I re-ran them for the Family Leave pay!  They used a different calculation to get to the 2/3 pay before and after the update.  Good news:  I think the new way is correct, so going forward things are right.  Bad news is, there will be a difference.  I just did a journal entry in accounting to write it off, but take note that it may not be super smooth...

Hi, has anyone seen a fix to this:  

The problem comes when I look at my COVID-19 Expense report (to determine how much of a credit to apply to my tax liability), any health insurance premiums related to this account are added in and subtracted out at the same time (creating a net 0 tax liability adjustment).

Finally, I see that the issue of SS being excluded from these leave wages has been fixed. However, there is supposed to be an applicable MC credit relating to these wages, but those amounts are not populating in the COVID Expense report, as it should, per your instructions.

Hi there, @jbrown509.

I hope you're having a beautiful evening. At this time, our Engineering team hasn't provided an update for the Covid-19 expense report. However, when the update is released, I'll post on this thread and let you know when the report is corrected. You can also check our FFRCA and CARES act pages of the Community and the QuickBooks blog page for any future updates.

Feel free to post below if you have any other questions. I'm always here to help.