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QuickQuestion
Level 1

Claiming tax credit for FFCRA- balances cancel out

Hello,

 

I ran the COVID-19 Expenses report, but noticed a credit and debit for the same amount for the National Paid Leave- Health Ins and Medicare payroll items.  The only balances remaining are the National Paid Leave Employee/Family. I set up the items based on Quickbook's article How to track paid leave and sick time for the coronavirus.  Any suggestions how to fix this?  

3 Comments 3
Steve_C
QuickBooks Team

Claiming tax credit for FFCRA- balances cancel out

Hi QuickQuestion. I understand how confusing all the changes to the system can be right now. But you can rest assured knowing that Intuit has your back. What you are describing is the way the FFCRA setup should be operating. However, if you run into anything else feel free to hit the reply button. Someone will always be here to answer as quickly as possible. 

QuickQuestion
Level 1

Claiming tax credit for FFCRA- balances cancel out

I'm a bit confused how the credit will work if there is a net zero for Health insurance and Medicare on the report. I'm not following why these items are set up as COVID-19 expenses for both the liability and expense.  

Steve_C
QuickBooks Team

Claiming tax credit for FFCRA- balances cancel out

Hi QuickQuestion. Thanks for replying. The part that may be confusing you is since the taxes had to be accounted for retroactively and applied in that way, it will look a little odd until it catches up.

 

Run the run a Payroll Liabilities report from 3/27 to 5/1 and you'll see that the tax paid and the tax owed amount do balance each other out. We have to look at it as a whole. The credit crosses quarters and won't have the same dates. It will be going forward. 

 

Let me know if you need anything else. The reply button and help is just a click away. 

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