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Highlighted
Level 1

COVID-19 leave and sick time

Quickbooks has an article on "How to track paid leave and sick time for the Coponavirus." However, in Step 3, there appears to be a problem. In Item 4, you are asked to give a "pay time" such as "National Paid Leave FMLA". Two items later in the step-by-step process, you are asked to enter the "Tax Tracking Type" as "National Paid Leave FMLA". However, "National Paid Leave FMLA" does not show up under the Tax Tracking Type Window even though I entered it under Item 4. HT

Solved
Best answer April 10, 2020

Best Answers
Highlighted
Moderator

COVID-19 leave and sick time

A pleasant day to you, swood1.

 

I'm here to share additional troubleshooting steps so you can set up your National Paid Leave FMLA item in QuickBooks Desktop successfully.

 

Aside from getting payroll updates, you'll need to update your QuicKBooks Desktop software to its latest release version. This is to make sure everything is up to date.

 

Here's how to manually update your software:

 

  1. Go to the Help menu.
  2. Select Update QuickBooks Desktop.
  3. Click the Options tab.
  4. Select Mark All and then click Save.
    QBDT Update QB1.PNG
  5. Go to the Update Now tab.
  6. Select the Reset Update checkbox.
  7. When you're ready, select Get Updates.
    QBDT Update QB2.PNG

To give you more insight and visual guide on how to update QuickBooks Desktop, please check out this article: Update QuickBooks Desktop to the latest release.

 

I know that you've already scanned this article about tracking paid leave and sick time for the coronavirus. But let me make this handy for your future reference.

 

However, if you're still unable to see the National Paid Leave FMLA option under the Tax Tracking Type, I recommend contacting our QuickBooks Care Team. They have the tools to investigate this further and may conduct a screen sharing session if necessary.

 

Additionally, our phone support may be temporarily unavailable due to the recent pandemic that affects our staffing. For now, you can reach our Chat Support instead.

 

Here are the steps to contact support:

 

  1. Click Help at the top menu and select QuickBooks Desktop Help.
  2. In the Have a Question? window, enter a topic.
  3. Click Contact us.
  4. Hit the Stat Messaging button.
    QBDT ChatSupport.PNG

Please take note our operating hours for chat support depends on the version of QuickBooks that you're using. Please see this article for more details: Support hours and types.

 

Be sure to leave me a reply if you have additional questions. Stay safe and have a wonderful rest of the day!

View solution in original post

13 Comments
Highlighted
Community Champion

COVID-19 leave and sick time

Obviously the instructions were published prior to some pending payroll update we have yet to see. "good" catch

Highlighted
Community Champion

COVID-19 leave and sick time

Just tried to check my update version and the entire update screen locks up Quickbooks, cannot even close the window - be prepared to use task manager to shut it down

Highlighted
Community Champion

COVID-19 leave and sick time

Just updated to version 22009. It does have the National Paid Leave Credit as an Other Tax in the drop down in the next window (halfway down or so, starts with "N")

 

No telling exactly when the update from 22008 to 22009 was available, I am on automatic updates it certainly did not show up yesterday when switching in and out of companies .  You may, as I did, have to manually update

Highlighted
Level 1

COVID-19 leave and sick time

Thanks. I updated to 22009, but I still do not see the National Paid Leave Credit.

Highlighted
Moderator

COVID-19 leave and sick time

A pleasant day to you, swood1.

 

I'm here to share additional troubleshooting steps so you can set up your National Paid Leave FMLA item in QuickBooks Desktop successfully.

 

Aside from getting payroll updates, you'll need to update your QuicKBooks Desktop software to its latest release version. This is to make sure everything is up to date.

 

Here's how to manually update your software:

 

  1. Go to the Help menu.
  2. Select Update QuickBooks Desktop.
  3. Click the Options tab.
  4. Select Mark All and then click Save.
    QBDT Update QB1.PNG
  5. Go to the Update Now tab.
  6. Select the Reset Update checkbox.
  7. When you're ready, select Get Updates.
    QBDT Update QB2.PNG

To give you more insight and visual guide on how to update QuickBooks Desktop, please check out this article: Update QuickBooks Desktop to the latest release.

 

I know that you've already scanned this article about tracking paid leave and sick time for the coronavirus. But let me make this handy for your future reference.

 

However, if you're still unable to see the National Paid Leave FMLA option under the Tax Tracking Type, I recommend contacting our QuickBooks Care Team. They have the tools to investigate this further and may conduct a screen sharing session if necessary.

 

Additionally, our phone support may be temporarily unavailable due to the recent pandemic that affects our staffing. For now, you can reach our Chat Support instead.

 

Here are the steps to contact support:

 

  1. Click Help at the top menu and select QuickBooks Desktop Help.
  2. In the Have a Question? window, enter a topic.
  3. Click Contact us.
  4. Hit the Stat Messaging button.
    QBDT ChatSupport.PNG

Please take note our operating hours for chat support depends on the version of QuickBooks that you're using. Please see this article for more details: Support hours and types.

 

Be sure to leave me a reply if you have additional questions. Stay safe and have a wonderful rest of the day!

View solution in original post

Highlighted
Level 2

COVID-19 leave and sick time

Paid leave items are supposed to be exempt from FICA (but not Medicare) on the employer side only.  How does one make this happen in QB Desktop payroll?  I have followed all the instructions, have the payroll item and tax tracking type, but it is still calculating both Employer and Employee FICA.

Highlighted
QuickBooks Team

COVID-19 leave and sick time

Hi, PeteH.

I'm here to help. Sounds like you're trying to edit your payroll liabilities. What you can do is to remove FICA from your list of active payroll liabilities. Here's how:

  1. Go to Employees.
  2. Select Payroll Center.
  3. In the Payroll Center, choose Pay Liabilities tab.
  4. From the Other Activities list, click the Change Payment Method.
  5. In the Payroll Setup window, click Benefit and Other Payments.
  6. Click Schedule Payments.
  7. Double-click the payroll item you want to edit.
  8. Under Payment Frequency, click to select I don't need a regular payment schedule for this item.
  9. Click Finish twice.

If you need further help with the steps above, I'd recommend reaching out to our Payroll Support Team. An agent will be able to further assist you via secured remote access session.

 

Here’s how to contact us:

  1. Go to: https://help.quickbooks.intuit.com/en_US/contact. 
  2. Choose your QuickBooks Product.
  3. Select Payroll.
  4. Choose your type of Payroll Subscription.
  5. Hit Payroll.
  6. Click on the View Contact Info button to see the support number.

Otherwise I'm here as well to help. Just reach out to me by responding below.

Highlighted
Level 2

COVID-19 leave and sick time

NO, what I am trying to do is to get QB to assess EMPLOYEE FICA, but not EMPLOYER FICA, when a paycheck has the Paid Leave addition item.  Paid Leave is subject to withholding of the employee portion of FICA, but is IS NOT SUBJECT to the Employer portion.  If I try to edit the paid leave payroll item, there is no way to remove the Employer FICA without removing the Employee FICA.  Only way I can see to get it right is to go in and enter a payroll liability adjustment for every paycheck.

Highlighted
Level 2

COVID-19 leave and sick time

NO, what i am trying to do is create paychecks using the "National Paid Leave EE" addition item.  I have followed the instructions to set up the item using the "National Paid Leave - Emp" tax type, but QB is applying both Employee FICA and Employer FICA to the checks.  Per section 7005 (a) of the Families First act, paid leave is subject to employee FICA withholding but is exempt from Employer FICA.  I tried to edit the "Taxes" on the item, but it will not let me remove employer FICA without also removing employee FICA.

Highlighted
Moderator

COVID-19 leave and sick time

Hello PeteH,

 

Eligible Employers that pay qualified leave wages will be able to retain an amount of all federal employment taxes equal to the amount of the qualified leave wages paid. In addition, the allowable qualified health plan expenses and the amount of the employer’s share of Medicare tax imposed on those wages, rather than depositing them with the IRS.  The federal employment taxes that are available for retention by Eligible Employers include federal income taxes withheld from employees, the employees’ share of social security and Medicare taxes, and the employer’s share of social security and Medicare taxes with respect to all employees. Hence, the employer FICA is still part of the paycheck you created for the employee. 

 

To know more about this, you can visit the IRS website and go to the Payment of the Sick and Family Leave Credit section: https://www.irs.gov/newsroom/covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-....

 

You can also consult your accountant about this. They what's the best option for your business setup.

 

Please let us know if you have more queries about it.

Highlighted
Level 2

COVID-19 leave and sick time

I don't need to consult my account, because I am one!

Please review Section 7005 (a) of the Families First act: https://www.congress.gov/116/bills/hr6201/BILLS-116hr6201enr.pdf

SEC. 7005. SPECIAL RULE RELATED TO TAX ON EMPLOYERS.
(a) IN GENERAL.—Any wages required to be paid by reason of the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act shall not be considered wages for purposes of section 3111(a) of the Internal Revenue Code of 1986 or compensation for purposes of section 3221(a) of such Code.  

I believe QB payroll is handling this incorrectly!

Highlighted
Level 2

COVID-19 leave and sick time

Also people need to check the tax tracking for their 401K Roth now when doing payroll.  Since they did the update our 401K Roth is no longer taking out taxes.  It is now deducting the 401K Roth from Gross instead of Net.  I tried setting it up again and same thing.  I even clicked all the taxes it is supposed to pay towards and it still doesn't work.  

 

So messed up here!!  I wrote this to them on Monday but have not heard back.

 

 

Highlighted
Level 2

COVID-19 leave and sick time

Send some love to the programmers, however.  They got bombarded with an overwhelming number of changes, with incomplete and unclear instructions from the government, and are responding quickly.  I am sure they will get it all worked out soon!

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