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NJK1
Level 1

COVID 19 PAYROLL

HELP !!

WE ARE ANTICIPATING THAT WE WILL RECEIVE THE PPP LOAN.  THEY WILL REQUIRE TRACKING.
I NEED TO PROCESS MY PAYROLL AND HAVE BEEN UNABLE TO FIND AN ANSWER TO THIS QUESTION.

DO I CREATE A 'NEW PAYROLL ITEM' THAT I WILL USE FOR ALL EMPLOYEES ??

DO I NEED TO CREATE NEW TAX ACCOUNTS ALSO ?

 

THANKS IN ADVANCE --

38 Comments 38
Nick_M
QuickBooks Team

COVID 19 PAYROLL

Good evening, NJK1.

 

I'll be more than happy to assist you in correctly setting up your employees to get ready for the Paycheck Protection Program. First things first, here's a link that lists the set up process for your employees in the QuickBooks Desktop product. It shows what benefit types you should assign to your employees and how to set up payroll items as well as how to set up liabilities and expenses for paid leave. 

 

- How to track paid leave and sick time for the Coronavirus.

 

That link also breaks down the process for setting up a new tax item, which you'll need to do. 

 

Once those steps are complete, I'd recommend checking out these articles, they provide insight into the Paycheck Protection Program as well as how it works. 

 

- What is the Paycheck Protection Program

 

- How the stimulus package benefits small businesses and self-employed

 

If you have any other questions, or need further assistance. Feel free to reach out here. 

john-pero
Community Champion

COVID 19 PAYROLL

For PPP you do not create any new payroll item as 75% of the loan to get all forgiven is for regular payroll for the 8 weeks following approval. And you cannot use these funds for the tax credit family leave or sick pay but you can use it for ordinary vacation or other PTO.

 

Only the special sick leave requires a new payroll item or more.

 

As far as tracking all you are going to do is produce two payroll reports. One for the 8 weeks and 1 for the comparison period which is last full quarter prior to funding.

keggeman
Level 2

COVID 19 PAYROLL

Why do the instructions have me set up a "COVID-19 liabilities" account if I then, was not told to use it for any of the new payroll items?

keggeman
Level 2

COVID 19 PAYROLL

Also,

Was I supposed to add the "National Paid Leave Credit" Other tax payroll item to each of my employees taxes window under the "edit employee" feature? When I run a quick report on the "National Paid Leave Credit", there is nothing there.

john-pero
Community Champion

COVID 19 PAYROLL

Probably so that you could keep track of these liabilities separately although you only have a single total liability with the IRS.

john-pero
Community Champion

COVID 19 PAYROLL

the payroll item is overall for your company. There is no reason to add it as a payroll item for any employee NOT receiving that type of pay.

 

Until you post hours to that pay type it will not be viewable in the report (default excludes zero amounts)

JulieM1
Level 2

COVID 19 PAYROLL

I just ran desktop payroll for the first time with the COVID19 payroll items set up as shown in the QB article "How to track paid leave and sick time for the coronavirus". I followed the steps exactly.  I set up the new tax item as shown in step #4.  When I entered a paycheck for one of my employees taking the Emergency employee sick leave, there is no credit showing up in my COVID "Other Tax" liability account.  I have the instructions exactly from QB desktop.  I'm not sure if this is a glitch in the QB program, or if there is additional instructions that need to be posted.

Has anyone else experienced this issue?  If you have been able to make the liability account show the credits, please post how you set up the liability account.

 

Julie M.

JulieM1
Level 2

COVID 19 PAYROLL

I just ran my first payroll with the COVID19 payroll sick leave and family leave items.  I set everything up following the instructions from the article from QB titled "How to track paid leave and sick time for the coronavirus". On step #4, is set up the new tax item for tracking.  Upon entering payroll for one employee using the EPSL, and entering their rate and quantity, their is no tax credit showing up in the liability account I set up to track the credit.  Has anyone else experienced this issue?  I'm not sure if there is something additional needed in order for the liability tax account to track this credit correctly?

 

Julie M

Kendra H
QuickBooks Team

COVID 19 PAYROLL

Thanks for joining this thread, @JulieM1

 

Before going into detail, I want to ask if you could give me step by step on how you set up the payroll item? This will allow me to take a look into the issue and see why the tax credit isn't affecting the liability account.

 

I look forward to chatting with you soon. Have a good rest of your day!

virginia7
Level 1

COVID 19 PAYROLL

following

JulieM1
Level 2

COVID 19 PAYROLL

 

My first step for setting up the payroll item was to update my tax tables to the most recent version of 22009 payroll version 04021441.  Once the update was complete, I followed each of the steps listed on the article from Quickbooks titled "How to track paid leave and sick time for the coronavirus. 

 

Step #2:  I created a liability account:  Account, new, other account types, other current liability, gave it a name, and saved.

 

Then I created an expense account as "other expenses"

 

Step #3:  Set up Payroll Items:

I set up a new payroll item as custom set up, addition, entered the expense account created above, in tax tracking, used the National Paid Leave E, in taxes used "calculate based on quantity, entered the default limit along with annual and restart each year.

 

Step #4:  Set up a new payroll item as "other tax" as a user defined tax, then tax is paid by company.  Selected National Paid Leave Credit, then selected the Agency for company paid liability from my vendor list, selected the payroll liability account I created, and also the expense account I created.

 

When I run my payroll, I have added the payroll type under the Other Payroll Items on the employees paycheck with the employees rate and quantity as the # hours.  Under the Company Summary, the Company tax item for the "National Family Leave Credit" is not even showing up and there is no entry showing in the Liability account that was created.

 

It seems as though the "Other Tax" item for this credit is not mapped anywhere in Quickbooks payroll software.  Please let me know if there is another step that needs to take place.

RMARosie
Level 2

COVID 19 PAYROLL

My firm does payroll in QB desktop 2018, 2019, and 2020. We followed the instructions to set up the Leave pay, but, in QB2019, when setting up the Payroll Item, when we came to the Tax tracking type window, the National Paid Leave EE or National Paid Leave Family is not appearing in the drop down menu

 

We see it in 2018 and 2020. What's the solution? 

Rosie

Kendra H
QuickBooks Team

COVID 19 PAYROLL

Hey there, @JulieM1

 

Thanks for following up in this thread with complete details on how you set up the paid leave item. 

 

Before going into detail, I'd like to ask you if you could start the process over and ensure that everything is adding up correctly? That way, if it's still not showing up, you could provide a screenshot, and I can get a better look into the issue you're having and be able to provide the best solution. 

 

I look forward to hearing from you. Take care!

ceciliastempleof
Level 1

COVID 19 PAYROLL

how do you do a 'regular' payroll when there are zero hours worked? Im paying all of my employees while my business is closed and I've applied for the PPP loan, but there is no way to put zero hours and have them paid. There isn't an option for tracking for that loan that i can find. Do you have exact directions on how to do so?

 

Kendra H
QuickBooks Team

COVID 19 PAYROLL

Thanks for joining this thread, @ceciliastempleof

 

I understand how all of this new information coming out can be confusing, but I'm here to help. 

 

You'll need to ensure that your QuickBooks Desktop payroll has complied with the Family First Coronavirus Response Act before you run a regular payroll. Once you've determined that your payroll service has complied, then you'll set up your paid leave payroll item to handle the FFCRA. After everything is set up and you're ready to run a regular payroll, make sure you add the appropriate payroll items for the paid leave and track those hours that have limits, and payout your salaried employees by the hour. 

 

Also, to track the PPP loan, you can use the Payroll Summary by Employee Report that gives you a comprehensive report of wages, deductions, and tax information, totaled by employee or period. You can check out this payroll report article with additional information about running reports as well. 

 

Feel free to comment below if you have any more questions. Take care!

GN72
Level 1

COVID 19 PAYROLL

Following

OttCon
Level 1

COVID 19 PAYROLL

I am having the same issue with the credits for the payroll taxes not showing up, I am wondering if Quick Books hasn't completely rolled this feature out yet and if we should go ahead and pay our weekly taxes as normal and the credits will catch up once Quick Books gets everything updated?

Nick_M
QuickBooks Team

COVID 19 PAYROLL

Hello, OttCon. 

 

I completely understand how confusing and chaotic times like this may feel. Don't worry, you came to the right place to get some answers. I'm more than happy to show you how claim your tax credits for payroll. Follow the steps below:

Pull a Quick Report to understand the balances of the credit

  • Go to your Chart of Accounts, then select the COVID-19 Expenses account.
  • Select the Reports drop-down, then select QuickReport.
  • 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 payroll on. The amount in the Total column reflects the amount of the Credit you can enter on the Liability check. 

Create a check to pay the payroll liabilities

  • Go to the Employees menu, then select Payroll Center.
  • Select the Pay Liabilities tab.
  • In the Pay Taxes & Other Liabilities section, mark the Federal 941 and other liabilities, make sure the check amount and item list under Payroll Liabilities are accurate, and then select View/Pay.
  • On the Payroll Liabilities window, select Create.
  • Go to the Payroll Liabilities tab and enter the National Paid Leave Credit and the amount of the 941 tax liabilities you qualify for based on the Payroll Item Detail Report you created.  You’ll need to enter the amount of the credit as a negative amount. (If your tax liability is less than the credit amount, the credit can be used in subsequent payroll liability payments.)
  • Select To be printed if you want to print the check. If you used a handwritten check, enter the check number or other reference in the NO. field. If you pay liabilities by Electronic Funds Transfer (EFT), clear the To Be Printed checkbox and type EFT in the No. field of the liability check.
  • Select Save & Next or Save & Close.
  • You’ll see your Payroll Liability Payment Summary and can then review the payments you scheduled, print a copy of the summary, and print checks.
  • You can re-run the QuickReport to see the difference in the liabilities credit you are still able to claim if your credit was larger than your liability.

Once these steps are completed you'll be able to claim your tax credits. I'm also providing you with a helpful article that will provide more insight on this topic, should you want to check it out. 

 

- How to claim my tax credits under the FFCRA

 

If you need further assistance with anything, feel free to reach out here. 

 

Thank you and have a happy Thursday.

 

 

 

 

 

 

 

 

yavtl
Level 1

COVID 19 PAYROLL

Hello,

We use a outside payroll service and have recently received our PPP funds.  How do I set this up in QB desktop for tracking?

acctfurniture83
Level 1

COVID 19 PAYROLL

There is no special setup for the PPP loan because it is essentially just a short term loan.  Set it up as you normally would setup a loan in the chart of accounts.  I would suggest having a reserve cash account so not to intermingle PPP monies with operating cash flow.  Then everytime you have a PPP expense, transfer the amount from the reserve account to the operating account where the expense is being paid for.  

Fevief
Level 2

COVID 19 PAYROLL

Hi,

 

I just processed payroll that included one employee who was paid under the National Paid Leave Family.  Before processing payroll, I set up the various payroll items according to the steps posted.  I just followed the steps you provided to review my credit balance.  The report only accounted for the employee's actual compensation, not credit for employer paid insurances, FICA and 403(b) match.  

 

Do I locate the credits for those additional payroll items in a different payroll report?

 

Thank you.

Kendra H
QuickBooks Team

COVID 19 PAYROLL

Hey there, @Fevief

 

Thanks for joining this thread. I'd be glad to provide information with tracking the employer credits.

 

Before going into detail, I want to ask what report you ran? There are a few payroll reports you can review and run, such as Payroll Details ReportPayroll Summary Report, and also Tax Liability Report, to see how many hours you've used in those tax credits. 

 

Below are several articles you can check out for more information about tracking tax credits in QuickBooks Desktop: 

 

If you have any more questions or concerns, please don't hesitate to comment below. Have a good one!

RDAVi
Level 1

COVID 19 PAYROLL

Try unscheduled payroll.

LizaP
Level 1

COVID 19 PAYROLL

Hello, I am having the same issue with EE-paid health insurance costs not appearing on the Quickreport. 

 

Following the directions in this article : How to claim my tax credit under the First Coronavirus Response Act

Issues: 

Step 1 -  The Quickreport does not show health credits

Step 2 - After applying National Paid leave Health Credit to a 941 payment, then re-running the Quick Report, the credit applied does not appear in the report. 

 

I am also wondering how to record employer-paid health insurance costs for employees who did not receive paychecks.  I can't create a zero paycheck just to record the addition.  Should this be done by journal entry, moving the cost from our Health Insurance expense account to the Covid-19 expense account? 

 

I spent about 5 hours on the phone with tech support, which did not help at all.  The two people I spoke to were not familiar with any of these issues (or anything related to Covid-19/CARES act payroll in general). Please advise.  Thanks. 

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