MA PFML

We'll have to create a liability adjustment for each employee (active or inactive), Galezy.

It will correct the employee's year-to-date payroll information. Let me guide you. Here's how:

1. Click Employees.
2. Go to Payroll Taxes and Liabilities, and select Adjust Payroll Liabilities.
3. Add the necessary dates, then select Employee Adjustment.
4. Select the employee, then complete the taxes and liabilities field.
5. Select the Accounts Affected, then click OK.
6. Repeat for the other employees, then click OK.

You can also check this article for more information: Adjust payroll liabilities in QuickBooks Desktop.

Don't hesitate to leave a comment below if you need more help with your concern. We're available 24/7 to assist you.

Yes I figured I have to do manual adjustment.  Main concern right now is changing the rate on the ML.  QB has it at higher rate. We have less than 25 employees so ML is .248 not .62

Where does the $$ come from when I do the adjustment? None of these taxes have been deducted any where.  If I do employee adjustment, will it deduct from wages? It's been long time having to do a big adjust.

Thanks for getting in touch with us again, @galezy,

To change the rates for MA PFML, you can edit the employee's profile or open the Payroll Setup preference.

Here are the steps to open the employee's profile:

1. From the Employees menu, then select Employee Center.
2. Double-click the employee's name to open the Edit Employee window.
3. Go to the Payroll Info tab, then click Taxes.Select the Other tab and set up the following item:
       * On the MA - Paid Medical Leave Co. line, enter the company share of the premium portion rate as a whole number (no decimals) in the Co. Portion Rate field (example: 60).
       * On the MA - Paid Medical leave Emp. line, enter the employee share of the premium portion rate (no decimals) in the Emp. Portion Rate field (example: 40).
       *On the MA - Paid Family Leave Co. line, enter the company share of the premium portion rate as a whole number (no decimals) in the Co. Portion Rate field (example: 0).
       * On the MA - Paid Family Leave Emp. line, enter the employee share of the premium portion rate (no decimals) in the Emp. Portion Rate field (example: 100).
4. Press OK.
5. Repeat for each covered employee.

You can also edit tax rates by going to the Employees tab and then Payroll Setup.

Regarding the adjustment, use it to increase or decrease a tax liability for corrections. For example, if an employee was mistakenly set up as exempt from taxes, but must be subjected to it or you received tax credits from the agency for overpayment, and etc.

If these items are deducted to the employees paycheck or posted to the company's liability, that's when you do the adjustment. To determine the amounts to adjust, create a Payroll Detailed (Detail) Review report. Here's how:

1. Go to Reports, select Employees & Payroll. 
2. Choose Payroll Detail Review, then click on the Customize Report button. 
3. Click the Display tab and fill in the From and To dates. 
4. Under Columns and Filter, enter the Payroll item in the field box and tap OK.
5. Verify that tax amounts if the wage limit and tax rate is correct. 

For additional information about customizing, you can browse this article: Customize reports in QuickBooks Desktop.

Once you determine which payroll items and by what amount, let's go to the Employees menu to adjust. Let me guide you how:

1. From the Employees menu, choose Payroll Taxes and Liabilities. 
2. Select Adjust Payroll Liabilities, then choose the correct Effective Date. 
3. Click Employee Adjustment. 
4. In the Taxes and Liabilities page, hit the Item Name column and select payroll or tax item.
5. Tap Accounts Affected, then hit Do not affect accounts if you don't want to post it to any accounts in QuickBooks.

For more information about the process, check this article: Adjust payroll liabilities in QuickBooks Desktop

Just in case you need someone to guide you with doing the adjustments, I would recommend contacting our Support Team again. They can provide more help with correcting payroll items. 

Refer to this article to learn more about our contact options and support availability: Contact QuickBooks Desktop support

Let me know how it goes. I'll be right here if you need further assistance with your payroll in QuickBooks. Have a good one!

Yes I understand how to make adjustments.  As I said, Main concern right now is changing the rate on the Medical Leave. QB has it at higher rate. We have less than 25 employees so ML is .248% not .62%. It was set at that through payroll update.  There is no way to change it from .62 to .248. I've tried payroll setup and employees page.

I appreciate you getting back to us and clarifying your concern, @galezy.

Yes, you're correct. When you have less than 25 covered employees for MA Paid Family Medical Leave, your combined rate shouldn't be at .62%. To get this clarified, let's determine why the rates are higher than you expected.

First off, you'll want to make sure how many employees are covered for MA Medical Leave, and this should include contractors. 1099-MISC contractors count toward your total number of covered individuals only if they make up more than 50 percent of your total workforce (W-2 employees and 1099-MISC contractors combined).

Then, check what tax rate you're subject to and how to split up the employee and employer tax rates. You can use this Paid Family and Medical Leave Contribution Calculator to determine what portion of the tax you are subject to based on the number of covered employees and contractors.

With this, you'll be able to determine why the MA Medical Leave tax rates are higher. For more details, feel free to check out this article: Massachusetts Paid Family Leave.

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response.

There are THREE (3) employees.  Employer has no share. Employee 100% of the family leave and 40% of the medical leave, that is set correctly. I cannot change the ML rate from .62% to .248%

Thank you for the additional details, galezy.

Changing the rate will require our Payroll team to do it. Please contact them on weekdays from 6 AM to 6 PM PT.  Choose your payroll service below to open the Chat page.

• Do It Yourself
• Assisted

If you have other questions, feel free to go back to this thread.

I need to know why Intuit has not yet filed my 2020 MA PFML - i received a letter stating that Intuit is unable to file Q4 for the following reasons:

You have been deducting the medical portion of the MA PFML from one or more of your employees above the 40% limit allowed. 

Then it tells me how to process the taxes but there is no tax from in my QB's named "MA PFML" 

please help! 

Hi there, michellephaneuf12.

If you're using QuickBooks Assisted payroll, Intuit will file your Paid Family and Medical Leave (PFML) taxes to your state agency. Thus, I suggest contacting our Assisted Payroll Support Team as to why it's not yet filed. We have dedicated agents who'll check the set up of your payroll and the paychecks to see what's causing this behavior.

1. Go to Help, then select QuickBooks Desktop Help.
2. Click Contact Us.

Otherwise, you'll have to file and pay it manually if you're using the regular payroll. For additional information on how to file your taxes, feel free to visit the MA Paid Family Leave for employers website.

You can also check out this article to know how QuickBooks handles MA PFML: Massachusetts Paid Family Leave.

Please know the Community has your back. If you have any other QuickBooks concerns, don’t hesitate to visit us again. I’m here to lend a helping hand.

For less than 25 employees just choose the MA Paid Family Leave and MA Paid Medical leave.  DO NOT choose the MA Paid Family Leave Company or the MA Paid Medical Leave Company. 

Then go into the employee center, choose the employee and go to the Payroll Tab and then to the Taxes button then to the Other tab. Under Item Name drop down and add "MA Paid Family Leave".  Once you do this you'll see Emp. Share Pct..   put in 100%

Then add the "MA Paid Medical Leave" (that has a tax of 0.62%) and in the Emp. Share Pct. put in 40%.  You'll find that when the check gets calculated, it will deduct the correct 0.248% required for employer with less than 25 employees.