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SG_Commexis
Level 3

FFCRA paid leave tax credit for vaccine related time off

Last week the President mentioned that paid time off related to getting the vaccine and side effects afterward would be covered for employers to get a tax credit.   I have reached out to QB Support via my log in and transferred to several departments but no one seems to know about this.

 

I found this statement:
"Eligible employers may claim tax credits for sick and family leave paid to employees, including leave taken to receive or recover from COVID-19 vaccinations, for leave from April 1, 2021, through September 30, 2021."

 

On this page:

https://www.irs.gov/newsroom/employer-tax-credits-for-employee-paid-leave-due-to-covid-19

 

I have already paid some employees for Covid vaccine appointments and time off for feeling ill afterward.

How do I claim this credit for time already paid and time I am expecting to have to pay, once everyone gets vaccinated?
Note: we have previously not had any employee get covid19 and have to have paid time off for this.

 

Solved
Best answer April 27, 2021

Best Answers
ShiellaGraceA
QuickBooks Team

FFCRA paid leave tax credit for vaccine related time off

Hi @SG_Commexis and @su10,

 

I'd be glad to assist you with the FFCRA paid leave tax credit. To apply the credits to the past payroll, you'll need to create a payroll adjustment.

 

For QuickBooks Online, you'll have to contact our Payroll Support so our payroll agents will do the adjustment for you. Here's how to reach out.

 

  1. Go to (?) Help at the top.
  2. Scroll down and tap Get help from a human.
  3. Click Have us call you.
  4. Type in your details and then click Get a call.

 

For QuickBooks Desktop, you can create an employee adjustment using the FFCRA paid leave payroll item. Here's how:

 

  1. Go to Employees at the top.
  2. Scroll down to Payroll Taxes and Liabilities, and then select Adjust Payroll Liabilities.
  3. Enter the Date, Effective Date, and Adjustment is for: Employee.
  4. Under Item Name, choose the FFCRA paid leave payroll item, and then type in the adjusted Amount.
  5. Click the Accounts Affected button and then OK. See the attached images below.

 

 

 

 

 

 

 

Here's a guide to learn more about payroll adjustment in QBDT: Adjust payroll liabilities in QuickBooks Desktop.

 

I'm also attaching these links below in case you need help with other tasks in QBO and QBDT payroll. It has topics with articles that'll help you along the way.

 

 

Please don't hesitate to comment below if you still have questions or concerns with payroll deductions. I'm more than happy to answer them for you. Take care and have a great day ahead.

View solution in original post

10 Comments
Rubielyn_J
QuickBooks Team

FFCRA paid leave tax credit for vaccine related time off

I'm here to provide some insights about the FFCRA paid leave tax credit, @SG_Commexis.

 

With the passage of the Consolidated Appropriations Act and the American Rescue Plan Act of 2021, employers can continue to voluntarily allow the use of FFCRA leave through September 30, 2021.

 

You can apply for these tax credits when you run payroll. By entering this leave time in your QuickBooks Online Payroll, you’ll be able to immediately apply 100 percent of the qualified leave wages to reduce and/or receive a refund of your Federal Payroll Tax liability amount due. This includes any health care premiums you pay on behalf of your employees.

 

Also, I recommend contacting our support team for additional assistance. They can help apply these credits to your payroll to ensure you’re compliant and using these credits correctly.

 

I'm also adding this resource for more details: What you need to know about the Families First Coronavirus Response Act.

 

Keep in touch if you need some clarifications about this matter. I'll be around to further assist you. Have a wonderful day.

SG_Commexis
Level 3

FFCRA paid leave tax credit for vaccine related time off

Thank you for your response.

I had contacted Support two times and they were not aware of the credit for Vaccine Related time off or how Quickbooks was handling it.

 

Also, although I anticipate there may be future time related (before running a payroll), there has also been time already paid prior to knowing about this credit available for Vaccine Related time.

AlexV
QuickBooks Team

FFCRA paid leave tax credit for vaccine related time off

Hello there, SG_Commexis!

 

I understand that you need to claim the said credit. Let me help you.

 

The time off related to COVID-19 vaccinations is still under the Family First Coronavirus Response Act. If you haven't yet, you'll need to set up these sick leave types on your payroll. Follow these steps:

  1. From the Payroll menu, select Employee and click the employee's name.
  2. In the How much do I pay an employee section, select the +Add additional pay types.
  3. Select the correct paid leave type under the Families First Coronavirus Response Act section, and select Done.

 

Based on how you describe the scenario, you'll need to check the Employee National Paid Sick Leave. Although, you can see on there the description of each leave type so you can select the right one.

 

Once done, this field will appear when you run the payroll. From there, you can enter the credits or the hours the employee used.

 

You may also check these links to understand more how QuickBooks Online handles these paid sick leaves:

 

We also have a dedicated team that can further assist you regarding this concern. Just click this link: http://paycheckprotection.intuit.com/.

 

Leave a comment again on this post if you need more help. Take care always!

SG_Commexis
Level 3

FFCRA paid leave tax credit for vaccine related time off

Hello AlexV,

That was very helpful.

How do I handle this for payroll that was already processed?

 

Also, FYI - I was already directed to your paycheck protection unit and they said they do not handle this.

su10
Level 1

FFCRA paid leave tax credit for vaccine related time off

how does this relate to quickbooks desktop?

ShiellaGraceA
QuickBooks Team

FFCRA paid leave tax credit for vaccine related time off

Hi @SG_Commexis and @su10,

 

I'd be glad to assist you with the FFCRA paid leave tax credit. To apply the credits to the past payroll, you'll need to create a payroll adjustment.

 

For QuickBooks Online, you'll have to contact our Payroll Support so our payroll agents will do the adjustment for you. Here's how to reach out.

 

  1. Go to (?) Help at the top.
  2. Scroll down and tap Get help from a human.
  3. Click Have us call you.
  4. Type in your details and then click Get a call.

 

For QuickBooks Desktop, you can create an employee adjustment using the FFCRA paid leave payroll item. Here's how:

 

  1. Go to Employees at the top.
  2. Scroll down to Payroll Taxes and Liabilities, and then select Adjust Payroll Liabilities.
  3. Enter the Date, Effective Date, and Adjustment is for: Employee.
  4. Under Item Name, choose the FFCRA paid leave payroll item, and then type in the adjusted Amount.
  5. Click the Accounts Affected button and then OK. See the attached images below.

 

 

 

 

 

 

 

Here's a guide to learn more about payroll adjustment in QBDT: Adjust payroll liabilities in QuickBooks Desktop.

 

I'm also attaching these links below in case you need help with other tasks in QBO and QBDT payroll. It has topics with articles that'll help you along the way.

 

 

Please don't hesitate to comment below if you still have questions or concerns with payroll deductions. I'm more than happy to answer them for you. Take care and have a great day ahead.

View solution in original post

franklin302
Level 1

FFCRA paid leave tax credit for vaccine related time off

I have questions about this topic as well.  I keep seeing articles, etc. saying this credit is an extension.  It is not.  This is a new credit that is taken off on the 941 Quarterly Form and is for vaccine or vaccine related recovery.  The previous credits were for covid related illness, not the vaccine.  I have a few people that have used this leave but I don't know how to enter it into Quickbooks Desktop so it shows up on the 941.

AbegailS_
QuickBooks Team

FFCRA paid leave tax credit for vaccine related time off

Thanks for joining the thread, franklin302.

 

Allow me to share insights about  FFCRA paid leave tax credit.

 

Qualified health plan expenses incurred in connection with FFCRA-qualified wages are required to be reported on line 19 (for qualified sick leave wages) and line 20 (for qualified family leave wages). Enter the refundable portion of the credit for qualified sick and family leave wages from Worksheet 1, Step 2, line 2k.

 

Let me provide you steps on how to check your Family First Coronavirus Response Act (FFCRA) set up.

  1. Go to Lists, then Payroll Item List.
  2. Right-click and edit your FFCRA payroll item.
  3. Hit Next until you reach the Taxes section, then the Default button.
  4. Click Back to the Tax tracking type section. This is where you can see how the payroll item appears on tax forms like your 941 form.
  5. Tick Next until Finish. Please see attached screenshots below.

I'll also share this article about adjusting payroll liabilities that I'm sure you'll find helpful. It helps you fix incorrect payroll liabilities.

 

If you have any more questions about the act, check out: Families First Coronavirus Response Act: Questions and Answers

 

Please let me know if you have other concerns. I'm just around to help​​​​​​.

Mike Stone
Level 1

FFCRA paid leave tax credit for vaccine related time off

All of the instructions regarding the FFCRA credit refer to selecting this payroll item from your Payroll Item List.  I have installed the latest payroll update for QB Desktop as of July 1, 2021 and I have no FFCRA items in my Payroll Item List.  What am I missing?

Mike Stone

503-906-3546


@ShiellaGraceA wrote:

Hi @SG_Commexis and @su10,

 

I'd be glad to assist you with the FFCRA paid leave tax credit. To apply the credits to the past payroll, you'll need to create a payroll adjustment.

 

For QuickBooks Online, you'll have to contact our Payroll Support so our payroll agents will do the adjustment for you. Here's how to reach out.

 

  1. Go to (?) Help at the top.
  2. Scroll down and tap Get help from a human.
  3. Click Have us call you.
  4. Type in your details and then click Get a call.

 

For QuickBooks Desktop, you can create an employee adjustment using the FFCRA paid leave payroll item. Here's how:

 

  1. Go to Employees at the top.
  2. Scroll down to Payroll Taxes and Liabilities, and then select Adjust Payroll Liabilities.
  3. Enter the Date, Effective Date, and Adjustment is for: Employee.
  4. Under Item Name, choose the FFCRA paid leave payroll item, and then type in the adjusted Amount.
  5. Click the Accounts Affected button and then OK. See the attached images below.

 

 

 

 

 

 

 

Here's a guide to learn more about payroll adjustment in QBDT: Adjust payroll liabilities in QuickBooks Desktop.

 

I'm also attaching these links below in case you need help with other tasks in QBO and QBDT payroll. It has topics with articles that'll help you along the way.

 

 

Please don't hesitate to comment below if you still have questions or concerns with payroll deductions. I'm more than happy to answer them for you. Take care and have a great day ahead.


 

KlentB
QuickBooks Team

FFCRA paid leave tax credit for vaccine related time off

Hi there, Mike.

 

I can share some information about how FFCRA or ARPA paid leave works in QuickBooks.

 

Please know that you'll be the one to set up the FFCRA payroll items applicable to your employee’s situation. These are items you'll use in tracking the eligible wages that can be applied towards tax credits later on. You can refer to this article for the detailed steps; How to track paid leave and sick time for the coronavirus.

 

Furthermore, American Rescue Plan Act reset the hours of paid leave available. They expanded the paid leave to include employees who need time off to receive or recover from the COVID-19 vaccine. Employees will get additional 80 new hours of leave to use between April 1, 2021 and September 1, 2021. 

 

After running your payroll with the paid leave, you’ll get credit towards your federal tax deposit for the wages and health care premiums you pay on behalf of your employees. Take note that the paid leave from the paychecks created within those periods is now subject to Employer Social Security tax.

 

Lastly, here are some resources that you can browse to learn more about these new updates:

 

I'm still here if you need more help in accomplishing your other tasks. Just add a reply below and I'll get back to you.

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