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brittacctmpcb70
Level 1

How do we turn off the employee tax for FICA and SS per trump payroll tax deferment?

 
11 Comments 11
john-pero
Community Champion

How do we turn off the employee tax for FICA and SS per trump payroll tax deferment?

It does not go into effect,, if it does at all until 9/1 and only for earnings earned from 9/1 on and would not include wages for work today but paid on 9/1

 

I would never turn off the tax since the tax is still obligated but may only be deferred

 

First you wait for guidance from Treasury (IRS) which has yet to materialize 

 

Second, you wait for your payroll software provider to update the process.

 

Third, you consider tge ramifications that as an employer you are ultimately responsible for submitting both your and employee taxes and this deferral for the employee might have to come out of your pocket on 1/1/21 

 

Many of us are considering two options.

1. Ask our employees if they are willing to take this 6.2% now and face a bigger tax bill or not.

2. Deduct as normal but advance the equivalent to employees and hold the deduction in escrow until year end or when there is factual guidance.

 

My initial thought is that this deferral may be optional, just like tge current deferral of employer ss that you might already qualify for

ZackE
Moderator

How do we turn off the employee tax for FICA and SS per trump payroll tax deferment?

Welcome to the Community, brittacctmpcb70. I'd be happy to guide you through how to stop this tax from deducting out of your employee's paycheck.
 

There's just a few steps to remove this deduction. Here's how:
1. In the left navigation bar, go to Workers.
2. Confirm that Employees is selected at the top of the page, then choose an employee from your list.
3. On your worker's profile, click the small Pencil (✏️) icon next to their Pay section.
4. The numbers 1-5 will be displayed on the left. Number 4 is the section used for deductions. In this area, locate the FICA tax and click its Trash Can (🗑️) icon.
5. It will ask if you want to delete the selected deduction. Hit Yes to proceed.
 

You'll be able to find additional information about adding, editing, and deleting payroll deductions in the following resource: Change or delete a payroll deduction item
 

If there's anything else I can assist with, feel more than welcome to send a reply in this same thread. Have an awesome day!

anna.pochigayeva
Level 2

How do we turn off the employee tax for FICA and SS per trump payroll tax deferment?

Hi Zack,

Which version of QB your reply is for? Doesn't look like it will work for QB online.

 

Thanks,

Anna

Tori B
QuickBooks Team

How do we turn off the employee tax for FICA and SS per trump payroll tax deferment?

Hey there, @anna.pochigayeva

 

Thanks for following the thread. 

 

The steps provided by my colleague Zack are for our QuickBooks Online Payroll. If you don't use QuickBooks Online Payroll, you can check out the link he provided, Change or delete Payroll deduction Item. From there, you'll see a list of our payroll services and choose the correct one for you.

 

Please let me know if you have additional questions or concerns. I'll be here to help you every step of the way. You can always reach out to the Community any time you need a helping hand. Take care!  

Stepheni
Level 1

How do we turn off the employee tax for FICA and SS per trump payroll tax deferment?

Has there been any update to this? 
Since we also have to recoup the money from the employee and pay it to the IRS in 2021, will there be any automation within the app? 

 

IRS Guidance: https://www.irs.gov/pub/irs-drop/n-20-65.pdf

Charies_M
Moderator

How do we turn off the employee tax for FICA and SS per trump payroll tax deferment?

Thanks for checking this with us, Stepheni.

 

At this time, our Intuit Payroll Compliance teams are working with the IRS to determine the accurate process and specifics of this Tax deferral.

 

We will continue to update you with the latest information through this thread or you can visit our QuickBooks Blog.

 

Come and visit us again if you need help. It will be my pleasure. Stay safe and have a great day ahead!

CJR513
Level 1

How do we turn off the employee tax for FICA and SS per trump payroll tax deferment?

Why is it taking so long? Quickbooks should have been on top of this. Instead of leaving us to guess when you will be putting out an update. Also unless there is a link on the blog about this.... all of you need to quit saying read our blog. I looked there isn't anything there. 

Kathy CB
Level 1

How do we turn off the employee tax for FICA and SS per trump payroll tax deferment?

I FINALLY have a resolution as to how to edit deductions so you can stop the FICA deduction. The information given prior by quickbooks team is incorrect. Why we have been left in the lurch and have had to search relentlessly for these answers is not good business practices. I wasted 3 hours of my day on this.

 

You will have to do this manually for each employee if you have the same version I have.

 

The edit is done in the employee PAY edit tab. Click on W-4 withholding. Go CLEAR to the bottom of that page to find TAX EMEMPTIONS. click it and put a check mark in the SS MEdicare box.

 

Save and done.

TheMaximus
Level 3

How do we turn off the employee tax for FICA and SS per trump payroll tax deferment?

Intuit's response on this has been pathetic.  They keep saying they are waiting for more guidance from the IRS and talking to the IRS regularly, as if they are meeting with Secretary Mnuchin daily to figure this out.  The guidance was issued by the IRS long ago and is linked above.  They just have not made this a priority and the solution is overdue, needed weeks ago. 

 

I am using Intuit online payroll, for which there seems to be no help community - any attempt to reach such a place redirects here.  Please correct and point me over if I'm wrong.

morgancpa
Level 1

How do we turn off the employee tax for FICA and SS per trump payroll tax deferment?

It looks like this turns off both the employee and employer portions. How can you only turn off the employee portion?

GebelAlainaM
QuickBooks Team

How do we turn off the employee tax for FICA and SS per trump payroll tax deferment?

I appreciate you joining the thread, @morgancpa. I can help you turn off the employee portion. 
 

We can stop tax deductions on your employee's wages by following the steps below:
 

1.Go to Workers menu, and select Employees.
2. On the Employee's page, choose an employee from your list.
3. On the worker's profile, click the Pencil icon next to their Pay section.
4. On the left, numbers from 1 to 5 will be displayed. The fifth portion is where deductions are made. Locate the FICA tax and click the Trash bin icon next to it.
5. You'll be asked if you wish to delete the deduction you've chosen. To continue, select Yes.
 

If you want to delete a tax payment, you can click here
 

If you have any further questions, I'll be happy to assist you, especially if it comes to managing taxes in QuickBooks Online. Keep yourself safe!

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