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Level 1

How can i defer federal payroll tax under the Cares Act?

 
32 Comments
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Community Champion

How can i defer federal payroll tax under the Cares Act?

Just don't pay it.

 

If you are using QBO onlime payroll and you set up the proper payroll types for leave starting 4/1 the. QbO should automatically adjust the automatic payment. 

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QuickBooks Team

How can i defer federal payroll tax under the Cares Act?

Hi mwatters1. 

 

We recently received an update on the process of deferring payroll tax under the CARES act. With more than $300 billion of the $2 Trillion designated to help small businesses stay afloat and keep workers employed amid COVID-19. The stimulus plan grants small business owners tax credits and defers payroll taxes through 2020, so you can continue paying employees. You will be eligible for the deferment as long as you keep workers employed during the Coronavirus shut down. However, if you apply for a small business loan you will NOT qualify for payroll tax credits.

 

While this plan gives employers like yourself financial flexibility, you will have to pay back the deferred payroll taxes likely over the course of 2021 and 2022. (50% in 2021 and  50% in 2022) 

 

I'd also like to provide a helpful and informative article: 

 

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

 

If you have any further questions. You can reach back out here. 

 

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Community Champion

How can i defer federal payroll tax under the Cares Act?

Yes, you cannot aa PPP loan and also take the 50% retention credit

 

But you can receive both the credit for covered leave and a PPP loan which if you retain workers will be forgiven. You just have to separate the wages as you cannot use the two programs for the same wages

 

https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act

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Level 1

How can i defer federal payroll tax under the Cares Act?

Hi, When you say "set up the proper payroll types" can you be a bit more specific?

What types should we be setting up and do we need to this individually for every employee?

 

Thanks.

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Level 1

How can i defer federal payroll tax under the Cares Act?

Your article does not explain what to do if we are on assisted payroll. For example, you already took taxes as normal for the 3/25 payroll. Will you correct the Qly tax return and send the money back to us? All paychecks after 3/12 are eligible.

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Moderator

How can i defer federal payroll tax under the Cares Act?

Hi there, lclaytor23.

 

In regards to your concern, I would recommend reaching out to our specialist. They can help and guide you further as they have the tools to pull up in a secure environment. This way, they'll able to provide accurate ways on how to do it. Please consider following these steps to get in touch with them:
 

  1. Go to the Help menu and choose QuickBooks Desktop Help. We can also press F2 on our keyboard.
  2. Enter a keyword your concern. Then, click Contact us at bottom part of the pop-window.
  3. Enter a short description of your concern. 
  4.  Click Search and select Message Us.
  5. Visit here and go to the QuickBooks Desktop section to know their work schedule. This way, they'll be able to help us with the problem. 

 

Please know that we have limited and reduced our support hours due to the COVID-19. 

 

Add another reply if you need anything else. I hope you're good. Stay safe!

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Level 2

How can i defer federal payroll tax under the Cares Act?

Hello,

 

Are there any updates on how to defer payment of payroll taxes as an Assisted Payroll customer? We are running payroll on Monday and I would like to have this set up by then.

 

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Level 2

How can i defer federal payroll tax under the Cares Act?

Hello,

 

Are there any updates on deferring payment of payroll taxes as part of Covid-19 relief as an Assisted Payroll customer?  I will be issuing payroll tomorrow and would like to be able to defer the tax payment.

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Level 2

How can i defer federal payroll tax under the Cares Act?

This does not work.  The links are either missing or they crash.

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QuickBooks Team

How can i defer federal payroll tax under the Cares Act?

Hello, @HollyRH.

 

The best way to get updates on deferred payments for Assisted Payroll is to get in contact with our Desktop Support Team. The steps provided by @SarahannC will do the trick. If the links are missing or crashing, then I suggest adjusting the internet security options within Internet Explorer. The steps below will show you how:

 

  1. Choose Tools, then Internet Options.
  2. Go to General tab, select Delete. Press Temporary Internet files, then hit Delete (don't delete cookies).
  3. On the Connections tab, push LAN settings and check the box next to Automatically Detect Settings. Make sure the Proxy servers are blank unless you use one, then pick OK twice.
  4. Navigate to the Advanced tab and make sure both SSL 2.0 and SSL 3.0 are marked. If they're marked, clear the box next to Check for publisher's certificate.
  5. In the same Advanced tab, scroll down near the bottom and make sure TLS 1.2 is checked and TLS 1.0 and TLS 1.1 aren't checked. If marked, clear the checkboxes.

 

Now you can contact support and get updates about deferring payments. You also want to make sure you don't have any virus protection or firewall enabled on your computer.

 

Please don't hesitate to touch base with me here if you need any additional assistance. I look forward to hearing from you again.

Highlighted
Community Champion

How can i defer federal payroll tax under the Cares Act?


@lclaytor23 wrote:

Your article does not explain what to do if we are on assisted payroll. For example, you already took taxes as normal for the 3/25 payroll. Will you correct the Qly tax return and send the money back to us? All paychecks after 3/12 are eligible.


You are referring not to paid leave but to retention tax credit and you can apply for an "advance" of the credits on Form 7200 https://www.irs.gov/pub/irs-pdf/f7200.pdf or wait until you file Q2 941.  Paid leave still only starts 4/1

 

As far as using Assisted - you could save money by downgrading to Enhanced and be in control of your own tax deposits

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Level 3

How can i defer federal payroll tax under the Cares Act?

FYI, I just got off the phone with Intuit and for assisted and full service payroll you are only able to defer the employer share of social security IF you are a California employer.  This relief has been available for 3 weeks.  I am STUNNED that the other states in our country can't take advantage of this FEDERAL relief bill.  Intuit REALLY needs to step up their game on this.  I totally get that they are slammed, but so are we as CPA's and not just on payroll matters.  Small businesses NEED this relief to get through right now.

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Level 1

How can i defer federal payroll tax under the Cares Act?

I spent about an hour on a chat session with one of Intuit's finest this morning.  Here's how poorly they are equipped to handle this:

 

8:55, Apr 14

Intuit Rep: Hi, my name is xxxxx. I am going to be your Personal CARE agent today. I do apologize for the wait. Thank you for being so patient and reaching out to Intuit Full Service Payroll today, where we now offer T-sheets. I hope I can make your day AWESOME!

 

Intuit Rep: Good Morning i hope you are doing well today.

You: Thanks - I would like to defer the federal taxes allowed under the CARES act

Intuit Rep: I am happy to help you with this today.

Intuit Rep: one moment.

Intuit Rep: What is the amount of the tax payment and the date it is due?

You: There will be multiple payrolls over the coming months. The deferral is allowed for the rest of the year

 

Intuit Rep: Does your state require a waiver?

You: a waiver for what?

Intuit Rep: Deferring your tax payments.

You: these are federal taxes

Intuit Rep: Ok. Let me see what i can do.

You: For your reference: Section 2302 of the CARES Act provides that employers may defer the deposit and payment of the employer's portion of social security taxes and certain railroad retirement taxes. These are the taxes imposed under section 3111(a) of the Internal Revenue Code (the "Code") and, for Railroad employers, so much of the taxes imposed under section 3221(a) of the Code as are attributable to the rate in effect under section 3111(a) of the Code (collectively referred to as the "employer's share of social security tax").

 

Intuit Rep: You have to get the waiver from the irs to do this deferment on the irs website but i am looking at we need to do on our side to make sure it is fully taken care of.

You: I do not see that there is a waiver to be applied for. Per the IRS website: In no case will Employers be required to make a special election to be able to defer deposits and payments of these employment taxes.

 

Intuit Rep: The only thing is we can only stop the payments that are showing due, we have not got a way yet to stop all of them at one time, so you will have to reach out to us every time one is due to get it stopped but we can do that for you.

You: So every time I run payroll I have to get on here and ask for the soc sec taxes to be deferred?

Intuit Rep: Yes to make sure it is topped on our end.

 

Intuit Rep: Liability statement template for stopping tax payments: I (customer name) am requesting that Intuit stop (agency) tax payment for (date of the payment) in the amount of (amount of the payment), I will make this payment outside of the system and accept ALL liability for this payment.

Intuit Rep: We will need you fill this in and save it and i will create a task so i can have this stopped on our end.

 

Intuit Rep: for the upcoming tax payment of Federal Taxes (941/944) 04/22/2020 04/20/2020 5:00 PM Pacific $14682.44

You: it's not the entire amount

Intuit Rep: We would have to stop the entire amount.

You: that is ridiculous

Intuit Rep: That is just how intuit pays the amount as a whole.

Intuit Rep: I am still trying to see if we can do it this way just bear with me here.

You: ok

Intuit Rep: So i was able to get an answer the only way to stop the payment is as a whole. i do apologize.

You: got it

9:42, Apr 14

Highlighted
Level 1

How can i defer federal payroll tax under the Cares Act?

Has anyone found a resolution to this? I just spent a very frustrating part of my day chatting with a QB rep about the same. We are on QuickBooks Core payroll. I was told that I need to contact the IRS for that. I told them that I'm not seeing where employers need to make a special election to defer payroll taxes. His answer was to send me a link to the IRS' homepage. This is incredibly frustrating.

 

I just want to know how to navigate through QB Core payroll to stop the employer's portion of payroll taxes from being remitted to the IRS. Thanks to anyone who can help.

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Level 2

How can i defer federal payroll tax under the Cares Act?

This is outrageous. I am the controller for another company that uses a small local payroll processing company. They not only have this all figured out but have been hosting webinars twice a week to keep customers informed. QB? Zippo!!

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Level 2

How can i defer federal payroll tax under the Cares Act?

Just got off the phone with Assisted Payroll, still no capability to defer the employer taxes. However, they do have the capability set up for online payroll. As far as they knew, there was not something in the works to be released. I was told to call everyday to check the status. 

Does anyone know, if while running a payroll will it let you go into each check and zero out the employer tax portion? Does it let you do it manually atleast?

Highlighted
Level 2

How can i defer federal payroll tax under the Cares Act?

Just got off the phone with Assisted Payroll, still no capability to defer the employer taxes. However, they do have the capability set up for online payroll. As far as they knew, there was not something in the works to be released. I was told to call everyday to check the status. 

Does anyone know, if while running a payroll will it let you go into each check and zero out the employer tax portion? Does it let you do it manually at least?

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Level 2

How can i defer federal payroll tax under the Cares Act?

How can I defer my Employer portion of Social Security under the CARES Act?

QuickBook Online Payroll

  1. Go Setting, and then Account Settings, and select Payroll Settings.
  2. Under the CARES Act section, select the Employer Social Security deferral link
  3. Check the box next to I want to defer my employer portion of Social Security, and then select Ok.

Intuit Online Payroll

  1. Go to Setup tab
  2. Under the CARES Act section, select the Employer Social Security deferral link
  3. Check the box next to I want to defer my employer portion of Social Security, and select Ok.

Intuit Online Payroll Full Service

  1. Go to Account Settings tab
  2. Select Edit next to the Employer Social Security deferral under the CARES Act section
  3. Check the box next to I want to defer my employer portion of Social Security, and select Ok.
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Level 1

How can i defer federal payroll tax under the Cares Act?

There is an employee retention credit against quarterly payroll taxes on the 941 that I do not believe has to be paid back.   This is up to a $5,000 payroll tax credit per employee.   This is for under 100 employees and there are rules for over 100 employees.   This cannot be combined with a PPP loan.   How will QuickBooks payroll handle this option?   Thanks

 

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Level 1

How can i defer federal payroll tax under the Cares Act?

How will QuickBooks Payroll help us process the Employee Retention Credit against the quarterly 941 payroll taxes for up to $5,000 per employee for payrolls after 03.15.20?   This is for companies with less than 100 employees that do not get a PPP loan.     We have already processed payrolls for April.    I do not believe this money has to be returned.  Thanks

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Moderator

How can i defer federal payroll tax under the Cares Act?

Thank you for connecting with the QuickBooks Community, jb45Quest. At this time, we are working on an update to the program to help with this process. As of now, you can continue working in the program and will keep you updated when the process is completed. Let me know if there is anything else you need assistance with. Take care.

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Level 1

How can i defer federal payroll tax under the Cares Act?

Any updates on how assisted payroll customers apply the tax credits earned from paying our employees National Emergency Sick Leave when we next run payroll?

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Level 1

How can i defer federal payroll tax under the Cares Act?

How do I elect to defer social security payments granted under CARES act in QB Desktop 2020?

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Level 1

How can i defer federal payroll tax under the Cares Act?

Do you know how to activate or elect the deferment in QB Desk Top?

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