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keggeman
Level 2

FFCRA health insurance premium credit

I am using desktop payroll. I followed the steps recently provided in the last payroll update to set up my payroll for the FFCRA paid leave types, including the Health credit. My two question are:

1. I ssume, when I run payroll, for my salaried employee who is on paid sick leave, I would remove the salary amount at the top of the paycheck window (or make it 0) then "add" the National Paid Leave EE to the bottom left window. I would need to manually enter the dollar value for the number of hours they took limited by the 511 max per day, correct? For example they had 80 hours at 65/hr for a total of 5200 but are maxed to 5110 for those 80 hours.

2. How do I account or where do I enter the value of health insurance premium paid relating to that employee's 80 hours to get the credit? Do I enter it in that same left window and use "National Paid Leave-Health Credits?

21 Comments
Steve_C
QuickBooks Team

FFCRA health insurance premium credit

Hi keggeman. I know all the changes can be a bit overwhelming. But it seems to me you have a fairly good understanding of it. The process you described is exactly how you should be using the new payroll tax types. And although you understand the process well, if you need anything else at all let me know so I can further assist you. 

cassvet
Level 2

FFCRA health insurance premium credit

Can anyone elaborate on where to add the health insurance premium amount on the employees paycheck? I added it under "other payroll items" which then also added it to "company summary". But then when i run the quickreport for "covid-19 expenses" to pull the amount to take as the credit on the payroll tax deposit, the health insurance premium is on there as a positive amount and a negative amount so essentially not adding the amount to the report at all. what did i do wrong? I followed the quickbooks instructions for setting up the payroll items. 

IntuitLily
Moderator

FFCRA health insurance premium credit

You're already on the right track, @cassvet.

 

It's correct that you're adding it under Other Payroll Items. The health insurance premium is there as a positive and negative amount because you're using the same account for the liability and expense account.

 

Please refer to the 5th step under the National Paid Leave - Health Premium: How to track paid leave and sick time for the coronavirus.

 

Let me know if you have further clarification. I'm here to help however I can. Have a good one.

john-pero
Community Champion

FFCRA health insurance premium credit

I think (without seeing all of your steps) that you basically entered health insurance premiums in two places. Or as both a company contribution and an employee deduction or added pay. What is covered as an extra credit is YOUR net expense for health insurance provided to the employees, not any of their contribution. When you add this per payroll amount in each affected employee's Payroll Info>additions/deductions you DO NOT have to add it in manually when you do a payroll run.  If you added it during payroll IN ADDITION to setting it up in the employee info that might be the root of the problem

HCoKP
Level 2

FFCRA health insurance premium credit

@cassvet  It seems to me that the instructions on the debit/credit accounts are incorrect in the setup steps provided by QB.  When I step back and look at it as an accountant who ACTUALLY knows what is going on and how the pay/liability items impact a financial statement, it appears the QB programmers do not have that same understanding.  The credit for the insr should be reducing payroll tax expense, and also heads up the balance sheet payroll liabilities account will also have an incorrect balance in it if you follow the setup steps exactly.  Their setup steps do not reduce the liability shown on the balance sheet as the credit is actually utilized. LOL which isn't that the whole point of the credit!?  

 

I understand that all software providers have had to RUSH to get out patches to accommodate these changes, but its been almost 2 weeks now and they have not fixed all the mistakes that people have pointed out.  Hopefully soon they will all (not just QB!) will get it together!

Kaseyr
Level 1

FFCRA health insurance premium credit

Can you please provide the CORRECT steps or what accounts should be used?

dlgv
Level 1

FFCRA health insurance premium credit

I thought the maximum per day was $200.  Also can an employee request for 8 hours a week for childcare.  I fo do I deduct the amount submitted to the FFCRA from the salary and then add 8 hours to the payroll item in the second window?  Would I prorate the health insurance contribution?

 

Steve_C
QuickBooks Team

FFCRA health insurance premium credit

Hi dlgv. We have information available about what you need to know about the FFCRA . It will go over the basics of what you need to do, and also for further information you can look into the summary of the FFCRA

 

The IRS also has a page available on the coronavirus tax relief efforts that contains a plethora that will help you make the decision that's right for your situation. 

 

Additionally, if you would like to contact a tax professional we have the Find a Pro-Advisor tool  that will point you in the direction of a QuickBooks Certified Pro-Advisor in your area. 

 

If you need anything else, do not hesitate to click the reply button. I'm always prepared to help. 

FootPrintsHC
Level 1

FFCRA health insurance premium credit

What are the proper accounts to use? I agree with your logic, but what is the solution? If I take my full credit (leave credit + Medicare Credit + Insurance Premium credit), the COVID-19 expenses account becomes negative because of the way the items are setup. A negative expense is income, which is not what is intended.

FootPrintsHC
Level 1

FFCRA health insurance premium credit

What are the proper accounts to use? I agree with your logic, but what is the solution? If I take my full credit (leave credit + Medicare Credit + Insurance Premium credit), the COVID-19 expenses account becomes negative because of the way the items are setup. A negative expense is income, which is not what is intended.

CAC3
Level 2

FFCRA health insurance premium credit

I would think that since the Health Premium credit is only for tracking purposes and only for the Employer, that you would only enter the item in the employers side of the paycheck, which would not impact the taxes generated on the Employee's paycheck.

My question has to do with the item itself.  Since I need to pay the premiums, I don't want to reduce the liability amount to the Insurance Agent.  So, is the Health Premium Credit PR item only a tracking item; or, should I enter the Insurance Agent that I normally pay on this item so that I pay the correct amount to the insurance company?

Thank you,

Cheryl

erias
Level 1

FFCRA health insurance premium credit

Did you ever get this worked out? I set it up as instructed and entered a number under Other Payroll Items but then it isn't showing up right in the Quarterly 941 even when I enter a negative amount in the deposit. 

AlcaeusF
Moderator

FFCRA health insurance premium credit

Hi @erias.

 

Thank you for posting here in the Community. Let me share some information about your payroll concern in QuickBooks Desktop.

 

The way your payroll items affect the form will depend on the tax tracking type you choose. I know you set it up as instructed, but I still recommend double-checking it again to isolate the issue.

 

Here's how to edit:

 

  1. Click the Lists tab at the top menu bar.
  2. Select Payroll Item List.
  3. Double-click the item.
  4. Press Next until you see the Tax tracking type section.
  5. Review the tax tracking (check the description for more information about the forms that will be affected).

 

Since there's a non-refundable and refundable credit, can you confirm which specific box you're referring to in 941? Any additional information will help us provide more accurate solutions.

 

For additional reference, you can use the following article to correct amounts in Form 941, as well as the tax tracking types for the retention credit:

 

 

Please let me know if you need anything else regarding the form. The Community and I will be here to help you.

erias
Level 1

FFCRA health insurance premium credit

Sorry that didn't help much. I was going to chat tomorrow unless you can help me. I am running into two issues. First, I had included a negative Medicare Credit on the liability check and now my Quarterly 941 is miscalculating the deposits made and trying to give me a refund. Also, when I enter Health Insurance Credit that is not going onto the Quarterly 941.

Adrian_A
Moderator

FFCRA health insurance premium credit

I appreciate you for getting back to us, erias.

 

We can override your form 941 to include the credit. Let me guide you with these steps:

 

  1. On your 941 forms, add the credit amount.
  2. Locate Line 11 and then right-click the number and select Override.
  3. Enter the new amount.
  4. Click Save.

 

As for your second concern, let's review the Health Insurance Credit payroll item. This way, we'll be able to see the affected forms.

 

Also, I'd recommend reaching out to our Phone Support team. We have agents that can pull up your account and guide you step-by-step.

 

Feel free to bookmark these links for more information in managing Form 941:

 

 

I'm just around if you need help. Keep safe!

erias
Level 1

FFCRA health insurance premium credit

I heard it was bad to override 941 numbers. What about for the medicare credit already? This is what I have done:

 

- Setup accounts for FFCRA Tax Credit, Medicare Credit, and Health Premium as instruction.

- Had 1 employee use $800 of Tax Credit and calculated Medicare credit to be $11.60

- On employee paycheck, added Tax Credit and Medicare Credit

- On 941 deposit, added Tax Credit as negative and Medicare Credit as negative, thus lowering deposit. Let's say total deposit after negative numbers is $10,000.

- Trying to submit quarterly 941 but line 13a says deposit is $10011.60, which is incorrect. This results in it saying I should get a credit for $11.60.

 

If I override 13a, which is the total deposit, I am worried something else is wrong. What do I do here?

 

Then in the other situation, I did similiar:

- Setup accounts for FFCRA Tax Credit, Medicare Credit, and Health Premium as instruction.

- Had 1 employee use $800 of Tax Credit and calculated Medicare credit to be $11.60

- On employee paycheck, added Tax Credit, Medicare Credit, and Health Premium Credit.

- On 941 deposit, added ONLY Tax Credit and Health Premium as negative, thus lowering deposit. 

- Trying to submit quarterly 941 does not list Health Premium credit.

Angelyn_T
QuickBooks Team

FFCRA health insurance premium credit

Thank you for the follow-up questions, @erias.

 

It would be my pleasure to review this further for you. But for the security of your account and information, I recommend getting in touch with our QuickBooks Support. This way, a live representative can review each item/account to post to them accordingly. Moreover, they can make some necessary adjustments to correct your records.

 

To contact support:

 

  1. Open QuickBooks.
  2. Go to Help, then select QuickBooks Desktop Help.
  3. Select Contact Us.
  4. Give a brief description of your issue, then select Let's talk, and then choose a way to connect.

For the support's business hours, I encourage checking out the details from this link.

 

For additional tips about fixing amounts in Form 941, I recommend opening these articles:

 

If you have any other questions about QuickBooks or payroll, please let me know by adding a comment below. I'm always here to help. Have a great day ahead!

erias
Level 1

FFCRA health insurance premium credit

I plan on contacting them but can you at least give some general answers, I used example numbers.

erias
Level 1

FFCRA health insurance premium credit

I spoke to chat but they were not able to help me. Can you please answer my questions from before?

MaryJoyD
QuickBooks Team

FFCRA health insurance premium credit

Thank you for getting back to us, @erias.

 

You can follow the troubleshooting steps that are provided by my colleague above on how to double-check the tax tracking type you choose and overriding 941 to include the credit. But still, it would be best to reach our Customer Support team to help you go through with the steps you’ve performed in a secure environment to provide necessary adjustments to correct your records.

 

Check these articles for more information: 

You can follow the steps below on how to reach them:

  1. From your QuickBooks Desktop account, click the Help menu at the top.  
  2. Click the QuickBooks Desktop Help menu and select QuickBooks Desktop Help.
  3. Provide some information about this concern on the search box.
  4. Click the Contact Us link at the bottom of the window. 
  5. You'll now be provided with a few support options.  
  6. Select Get a call to arrange a callback from a support agent. Or Start a chat to chat with them directly.  

Here's the contact QuickBooks Desktop support article for more information about this.

 

Let me know if there is anything that I can help you with your account, by leaving a comment below.​ Take care and have a great rest of the day!

erias
Level 1

FFCRA health insurance premium credit

I've done both of those. I spent 2 hours on chat with someone who was looking at my QuickBooks. They did not seem to understand the question and issue and never resolved anything. Very disappointing. It should be a bit easier to answer. It seems QuickBooks does not handle FFCRA properly.

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