Hi @csc21,

Thank you for your prompt reply. I'll point you in the right direction for support concerning your query. 

If you've already contacted our Technical Support team, then I suggest you get back to them after a day or so to ask for an update on your open case. You can follow the same steps provided by my peer @Angelyn_T above. 

Feel free to get back to this thread if you have other questions. I'll be sure to get back to you. 

Hi all, 

So I've got the Social Security Company working for Paid Sick Time.

I'm confused about the Medicare Company portion though. I've entered the National Paid Leave-Medicare, and I manually enter the amount for that type, and subtract the same amount from the Medicare Company amount. Then, it is an in/out in the Covid Expense account that was set up, netting to zero. 

First, is this correct? (help!!)

Second, if correct <?>, then the credit amount is only the wages, not the wages plus the Paid Leave Medicare. Which I thought that would be the credit amount when paying. 

I think I'm missing something. Help.

say...for real??

yes, finding the same in/out of the Medicare Company numbers for the credit in the Expenses account. While I can manually figure out the dollar amount, I don't know the intent on the long term report programming. And the credit to enter should be wages + Medicare, which will make the expense account go negative. 

Has there been any update to this?  Corrections?

Hello, @jbrown509. 

To get the latest update about this, I suggest reaching out to our Customer Support directly. They have the additional tools to further check on this in a secure environment.

You can arrange a callback to talk to them. Follow the steps below:

1. From your QuickBooks Desktop account, click the Help menu at the top. 
2. Select QuickBooks Desktop Help. On the Have a Question? window that appears, click the Contact Us button at the bottom part of the page. 
3. Provide some insight with this concern in the Tell us more about your question box. Then, hit the Search button. 
4. You'll now be provided a few support options. 
5. Select Talk to a Specialist to arrange a callback from a support agent. Or Message an Agent to chat with them directly. 

Here's the contact the QuickBooks Desktop Customer Support Team article for more information about this. 

Let me know if there's anything that I can further assist. Have a great rest of the day!

I agree - you must manually adjust the liability payment with a negative payroll item and the accounts in the item set up need to be swapped. That way the credit reduces the liability and reduces the tax expense correctly.

I believe it should be compensation no   an addition to employee loan

I was just wondering if you were able to get any resolution on the issue wherein Quickbooks has classified sick leave wages as additions versus earnings causing the Simple IRA deductions to be calculated wrong? I am experiencing the same issue and was wondering if there was some type of "work around"

I tried calling twice today to get the credit figured out today and neither of the Payroll professionals had any idea what I was talking about. I can understand not knowing in April when this first was thrown at you but its September now and I can't get anyone that knows how to walk me through getting this set up!!!

Hi Lmendez10,

Knowing how to set up the credit is a very important thing to know how to you can use it on your payroll. We have articles with detailed steps to guide you with this, and I'm happy to share them with you.

About setting up and using National Paid Leave on your payroll, please refer to this article: How to track paid leave and sick time for the coronavirus.

About claiming tax credits, please refer to this: How to claim my tax credits under the Family First Coronavirus Response Act.

If you have additional questions, please don't hesitate to go back to this thread.

Hi QuickBooks help people!!

It's the middle of October.  The problem you have in calculating the Medicare Credit for Paid Leave is STILL not fixed. 

Like many of the commenters above, I have spent HOURS (my total count so far, 9 hours, on two chats, and one phone call) with your live support staff who don't even understand how the law is supposed to work. 

Here's my understanding of what should be happening vs. what is actually happening:

a. Set up a paycheck with the FMLA hours.  Add the payroll item for the Medicare Credit, which is equal to the Employer Portion of Medicare on the FMLA hours only.  (in some cases, we have to do our own math to get that number, which is NOT reflected in your instructions, but is not, in itself, the problem)

b. That payroll item should add the Medicare Credit to whatever Expense account we're using to track the credits you get to claim on your 941 Liability payment. BUT WHAT IS ACTUALLY DOES IS ADD THE AMOUNT AS BOTH A CREDIT AND A DEBIT, WHICH MEANS IT CANCELS OUT AND IS NOT INCLUDED IN THE BALANCE OF THAT ACCOUNT.  THIS IS WRONG. 

c. Then you're supposed to manually add that number to your 941 payment check.  This part works fine, but because the Expense account you're using already has the wrong balance after the previous step, your expense account will continue to have the wrong balance if you do this correctly.  

Part of the problem is that there is an error on your "How to claim my tax credits under the Family First Coronavirus Response Act" page, so when your support staff use that page to walk people through the "troubleshooting" the error we're seeing looks like it's supposed to be there. So nobody will admit it's an actual error in the software. The error occurs in Step 2, Item 5. "Go to the Payroll Liabilities tab and enter the National Paid Leave Credit, National Paid Leave - Health Premium and the amount of the 941 tax liabilities you qualify for based on the Payroll Item Detail Report you created." - that item should also specifically mention the MEDICARE CREDIT, which we are also entitled to count against our 941 Liability. 

I have tried reporting this as a bug through the software, and I have spent 9 hours talking 4 different customer service agents through this problem, and I am APPALLED at how hard it has been to convince anyone that this is a problem.   Do NOT reply to this with step-by-step instructions for how to recreate the error for the twentieth time. 

It would be nice if QuickBooks support really was here for us but alas this problem still has not been solved so that everything flows correctly to the 941.  Why not?

I tried to get help on this subject 10/23/2020.  QuickBooks payroll support still did not know how to solve the problem so that all numbers flow correctly to the 941 Report.

Agreed, I tried to get some clarification 10/23/20 and they still don't know what is going on.  

We appreciate your insights about this, @crabdent,

I want to help you further with your 941 reporting. Which section of the report are you having problem with?

If you're pertaining to the information on the Credit and wages worksheet under Schedule B, you will need to enter there the amount from line A that is attributable to Sick Leave Wages on line B and to Family Leave Wages on line C. Enter zero for either line if not applicable.

Please note that the data in Line A is derived from payroll items with Company Contribution and National Paid Leave-Health Tax Tracking Type. For further guidance with what populates the 941 form in QuickBooks, click the View details about this form link at the bottom of the return.

To obtain what amount to enter on lines B and C, open a Payroll Item Detail report in QuickBooks. Here's how:

1. From the Reports menu, select Employees & Payroll.
2. Choose Payroll Item Detail.
3. Run a report for the quarter selected, the look for National Paid Leave - Health.

If you need help verifying if tax calculations are accurate, you can contact our Support Team for further assistance. They can do a screen sharing session to check every detail on the return and make necessary adjustments to ensure you have an error-free filing.

Here's how to contact us:

1. Go to your QuickBooks Home page, then click the Help menu at the top.
2. Choose QuickBooks Desktop Help from the drop-down.
3. Hit the Contact us icon.
   

I want to continue helping you with this. Let me know your concerns in the comments below. I'm always here to help at any time.

Yup problem still not solved..... this is so aggravating!

Found a work-around for the National Paid Leave - Medicare issue since QB won't bother to fix it!  It appears to be an error in their instructions for the payroll item set-up and the appropriate GL accounts.  When setting up National Paid Leave Medicare ...  on the screen Agency for company-paid liability, box LIABILITY ACCOUNT ... use your NORMAL PAYROLL TAX EXPENSE account here (rather than QB instructions to use the new COVID-19 expense account).  In the expense account box DO use the new GL COVID-19 expense account you've already set up.  This makes the debit and credit wash thru your normal payroll tax expense account, thus reducing your payroll tax expenses by the Medicare credit.  This gets rid of that dreaded debit/credit wash in the COVID expense account.  Once you've posted your 941 tax liability payment and recorded the (negative) wages and Medicare credits your COVID expense account will be accurate.  I've confirmed that everything flows appropriately to the quarterly 941 report.  Thanks to user VolLRB for the posting this solution.  It WORKS!             

Thank you so much for the fix - makes perfect sense. I've changed my NPL Medicare set up and the balances and report are as they should be.  I've spent 4 hours on the phone with QB getting no where - it is as if they have no understanding at all of the issue. I wonder if you would help me with an additional question?  If my credit this pay period is larger than the amount due (on the pay liabilities window) how to I complete the transaction?  Recording the NPL credit (the negative wages/medicare) on the tax payment makes the total a negative, which can't be transmitted via epay, nor enable me to clear it as "paid" in the pay liabilities window.  Thanks again.

I ran my year end payroll check up.. all my employee list came up with yellow box indicating non standard tax election... when you select an employee and go through the screens it in the federal tax selection 4 bottom boxes : Subject to "CARES Co. Soc Sec Defferal," "Cares Retention Credit" "EE Soc. Sec. Defferal Credit" and "National Paid Leave Credit" .. what do these boxes do?  They are not in the tax boxes that appear as election in the edit employee tax select.  Does it automatically elect to deffer social secuirty whether they elect to participate or not ?  

Thank you for joining the thread, @Gordoncon.

Those boxes are under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which you can defer a portion of your Social Security and offset the impact of COVID-19. However, it seems that you aren't using those accounts, you can leave the boxes unchecked as long as the information in your 941 and W-2 forms is accurate.

I'm adding these articles for more information with those boxes:

• Track your deferral payments for Social Security tax payments.
• How to set up and track the Employee Retention Credit under the CARES Act.
• How to claim my tax credits under the Family First Coronavirus Response Act.

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. Have a great day.

This workaround didn't work for me. It DID remove the double-entry into the Expense account when I ran payroll, but now there's something else going on. The Liability Payment transaction is no longer taking the credit out of the expense account, but I can't tell where it IS coming from...

How did you take the credits when you paid the Liability? 

HI there, @secorpaint.

Tracking both liability and expense accounts is done separately and I can guide you on how to do it, schroder1.

The liability account can be applied before you can take credit. To do that, you'll have to do a few things first. You'll need to get a Quick Report to see the balances for the credit. Please follow the steps below.

1. Go to your Chart of Accounts, then select the COVID-19 Expenses account. This can include all 5 National Paid Leave payroll items:

• • National Paid Leave Employee sick
  • National Paid Leave Family Leave
  • National Paid Leave FMLA
  • National Paid Leave Employer health Insurance cost
  • National Paid Leave Medicare credit

1. Select the Reports ▼ dropdown, then select QuickReport.
2. Select the Customize Report. In the Columns box, type in Qty then selects it.
3. Select OK. This will show you the quantity (hours) of the items used.
4. Update the dates to reflect the paycheck date you are looking for. The amount should show all the payroll items you’ve set up and run the payroll on. The amount in the Total column reflects the amount of the Credit you can enter on the Liability check.

After you've figured out how much you owe, ensure that you’ve created a check to pay the tax liabilities. This is where your liability account is included. Here's a complete article for the detailed steps: How To Claim My Tax Credits Under the Family First Coronavirus Response Act.

Also, in setting up a new tax item, you'll need to select COVID-19 Expenses in the Liability account dropdown and select COVID-19 Expenses in the Expense account. This was being mentioned in step 6.

However, I still recommend reaching out to your accountant in choosing the appropriate accounts to use. 

For future reference, you'll want to read this article for more information: The IRS's page on Coronavirus tax relief.

Let me know if you have questions about the National Paid Leave setup. I'll be right here to answer you if there's something that you need help with.

MaryAnnE,

If you'll take the time to read any of the comments above mine, you'll see that we have ALL already read those instructions. We've taken them apart and put them back together again. We are, in fact, in this very exchange, talking about a work around that your customers hvae come up with because YOUR CODE AND YOUR INSTRUCTIONS ARE WRONG. 

So, please, if all you have to offer is a repetition of the same instructions again, just don't. Instead, take that that time to write a note to your boss, to tell THEIR boss, to tell your engineering organization that the instructions are wrong and/or the code is buggy.  And possibly both.