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Join nowWhen will instructions on setting up sick leave and using it do reduce Federal payroll taxes be addressed for QuickBooks Desktop?
Hey there, droybal.
I'd be happy to guide you in the right direction so you're on your way to setting up sick leave in QuickBooks Desktop. We recently released an update on the Desktop product, this update will allow you to:
1. Determine your employees benefits and hourly rate
2. Set up your liability and expense accounts for paid leave
3. Set up payroll items
4. Set up a new tax item
and many other features as well.
This link will show you step-by-step How to track paid leave and sick time for the coronavirus.
I also would like to provide you with a link that breaks down the Families First Coronavirus Response Act. It's a helpful tool that you can read up on if you have any questions pertaining to the FFCRA.
I hope this helps and if you need anything else, I'm just a click a way. Have a happy weekend!
Thanks for your response. I have followed the instructions to set up payroll items, but when I add the payroll item ex Nat. Paid Leave Employee or Nat Paid Leave Family to the employee's profile it is based on quantity. Since this is tracked by hours, shouldn't it be based on hours?
You're correct, droybal.
When you tracked your employees by hours, you'll have to base their sick leave by hours.
For this to be done, we'll have to select Calculate this item based on hours when setting up the tax item. Since you've already added the item, we'll have to modify it so it will calculate based on hours. I'll show you how:
Afterward, you're good to run payroll.
I've also added these articles for more information about the Families First Coronavirus Response Act:
There you have it, droybal. More power to you and all the best for your business. Stay safe!
When I set this up, it only allows me to enter the payroll item under Additions, Deductions, and Company Contributions. Is that correct? Where will this pay end up on the W-2?
Hello there, jeanneg.
I can help you set-up to your payroll item. First, you have to create a liability account. Here's how:
The following steps can be found in this article: How to track paid leave and sick time for the coronavirus.
You can also use the help articles provided by my colleague Adrian_A.
Loop me in if you have any other concerns. I'll be here to help. Take care.
I set it up according to your instructions, but when paying employees, it looks like it goes under "additions," not Earnings. Is this correct?
I'm anxious to hear the reply. The instructions do say to add as an addition, but how do we enter hours and rate of pay if that is the case. I guess I will continue to wait for a reply.
Thanks for your prompt response to my question. I change the payroll item to calculate by hour but since it was added as a addition , it shows up under the employee's profile as addition, deduction and company contributions. This does not allow you to enter rate and number of hours. Should this have been set up as a Wage?
I also have a question about step 4 in the instructions. Set up a new tax item. It one part it shows on the other tax window to select User Defined tax but right under that is states on the other tax window to select National Paid Leave Credit. Please confirm that we should use the Nation Paid Leave Credit since I/we have now updated payroll.
Are there any new instructions available for setting up tracking for paid leave/sick time for Covid-19? The instructions currently available need clarification.
Thanks so much for your help!
Hello, @droybal.
At this time, this is the updated instructions or article on tracking the paid leave and sick time for the employees that are affected by COVID-19. Changes are coming daily to QuickBooks Online Payroll, Intuit Online Payroll and QuickBooks Desktop Payroll. Thank you for your patience as we work to support you.
The Families First Coronavirus Response Act goes into effect with leave taken April 1, 2020 and after. Our payroll teams here at Intuit are working quickly to create the appropriate pay types so that you can track and report hours towards this tax credit for your small businesses.
Per the Act, if an employee was impacted and took time off for COVID-19 related issues prior to April 1, 2020, the time would be tracked as regular sick hours and is not eligible for any tax credits at this time.
Let me know if you have any other questions. I'm always here to help. Have a good day!
If the employee took time off under the FFCRA after April 1, how will it show on their w-2? Will it be classified in box 1 as income?
Hello there, jeanneg.
As of now, we haven't received any updates about the W2 form. The best thing we can do is to wait for the IRS update. Once information is available, I can share with you the accurate information and process on how to accomplish this.
You may want to check these articles that are related to your concern:
Tap my shoulder anytime you need help with QuickBooks. Stay safe and healthy. Take care!
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