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Level 1

National paid medicare & Health insr prem credits

Why does my chart of accounts quick report for COVID expense minus off all the credits except for the wages. The QB directions tell me to use the total on this quick report as a credit on the payroll liability check however, that amount only covers the wages not the medicare and health insurance premiums. I set up the National Paid accounts and double checked that they were exactly like QB directed. I entered the National Sick Paid Leave, National Paid Leave Medicare Credit, National Paid Leave Health Insr Premium on the paycheck detail under Other Payroll Items.  Please advise.

8 Comments
QuickBooks Team

National paid medicare & Health insr prem credits

Thanks for stopping by the QuickBooks Community, @DBURIC.

 

We can double-check the COVID Expenses account if it's set up correctly. Once you create a payroll using FFCRA paid leave, the liability check will be automatically posted to the register. This also includes your tax credit. I'll guide you how:

 

  1. Go to Lists at the top and select Payroll Item List. 
  2. Right-click the item name and select Edit Payroll Item.
  3. Verify the Salary name and click Next.
  4. Under the Expense account drop-down make sure its COVID-19 Expenses account.

 

Also, when you run a quick report make sure to update the dates to reflect the paycheck date you are looking for. If the paycheck's bank is set up for the COVID account then that will be your wages. 

 

For the detailed steps, we can use this reference: How to claim my tax credits under the FFCRA.

 

I'd also suggest contacting our Customer Support Team. They can view your account securely and run other troubleshooting to fix this. They are available from 6:00 AM-6:00 PM PST Monday-Friday and 6:00 AM-3:00 PM PST on Saturdays.

 

  1. Press F1 to open the Help window.
  2. From the search icon, type Contact Support.
  3. Click Contact us at the bottom part.
  4. Give a brief description of your issue about running a payroll and click the Search button.
  5. You'll be routed with How to connect with a QuickBooks expert and you
  6. Choose Message an agent to chat directly with a support agent.

 I'm attaching these helpful articles for additional reference about COVID-19-Related Tax Credits:

 

 

Please let me know if there's anything else that we can help you with, I'll be glad to help you. Have a good one.

 

Level 1

National paid medicare & Health insr prem credits

So is the quick report that I ran when in Chart of Accts and selected my COVID expense acct suppose to be the amount of my credit on the 941? The COVID expense lists the wages and then it list a positive and a negative for each of the Nat'l medicare and health insurance premium amts which means the only balance in the COVID expense is the wages which is fine but then the directions tells us to use the COVID expense balance as our credit on the payroll liability check which will NOT equal the amount that I get on the 941...it will be missing the medicare & health insr amounts?

Very confused. The only way my 941 payroll liability check would reflect the correct amount to pay to IRS is if I added the COVID expense balance (wages only) AND the Nat'l Medicare & Nat'l Health prem amounts. Can you please clarify my situation? 

QuickBooks Team

National paid medicare & Health insr prem credits

Thanks for the information, @DBURIC.

 

The total amount column in your quick report should reflect your credit that you need to enter on your liability check. In your case, you'll want to make sure you've set up the tax tracking type correctly. Let me walk you through how.

 

  1. Go to Lists, then Payroll Item List.
  2. Double-clicked the national paid leave "National Paid Leave Medicare Credit" item, then Next. Expense account should be your "COVID expense" account.
  3. Then, Next. In the Tax tracking type drop-down, choose National Paid Leave- Medicare.
  4. Hit Next until Finish. Do steps 1 to 3 for your "National Paid Leave Health Insr Premium" and make sure to click  National Paid Leave- Health as the Tax tracking type.

Once verified, go back to your quick report and check the total amount of your COVID expense account. Here's how.

 

  1. Press CTRL+A.
  2. Right-click on the COVID expense account and then QuickReport: COVID Expense.
  3. Select Customize Report at the top. In the Columns box, type in Qty then click it.
  4. Tick OK. This will show you the quantity (hours) on the items used. Edit the Dates drop-down.
  5. The amount will show all the payroll items you’ve set up and run payroll on. The Total Amount column is your credit that you enter on your liability check. See attached image below.

With these steps, you're able to verify and check the correct amount for your liability check. You can learn more about the tax credits at these links below.

 

 

We also have a guide on how the Coronavirus Aid, Relief, and Economic Security (CARES) Act affects your payroll which I'm sure you'll find helpful. It has information that'll help you with the employee retention credit and deferral of the employer share of Social Security taxes for 2020.

 

That's all there is to it. Please know that we're always here if you have other questions or concerns. Feel free to reply anytime. Thanks for reaching out to us, take care and have a wonderful day ahead.

 

Level 1

National paid medicare & Health insr prem credits

I changed the setup of payroll item "National Paid Leave -Medicare" to make it work. I followed the setup instructions by QuickBooks except for the following:

Liability account: choose "Payroll Taxes" instead of "COVID-19 Expenses"

Expense account: remain the same "COVID-19 Expenses"

This will result in a negative number in the "Payroll Taxes" expense account and a positive number in the "COVID-19 Expenses" account. 

 

To add the credit to payroll check:

When it's time to process payroll check, in the "Other Payroll Items" section, add a new item "National Paid Leave - Medicare". The rate is the same amount shown next to "Medicare Company".

 

To claim the credit:

  • Note the balance of COVID-19 Expenses. This is the credit amount.
  • When paying for the Federal 941 payment, add a new item called “National Paid Leave Credit” with a negative number of the credit amount.
  • The balance of COVID-19 will be offset.
Level 1

National paid medicare & Health insr prem credits

I changed the setup of payroll item "National Paid Leave -Medicare" to make it work. I followed the setup instructions by QuickBooks except for the following:

Liability account: choose "Payroll Taxes" instead of "COVID-19 Expenses"

Expense account: remain the same "COVID-19 Expenses"

This will result in a negative number in the "Payroll Taxes" expense account and a positive number in the "COVID-19 Expenses" account. 

 

To add the credit to payroll check:

When it's time to process payroll check, in the "Other Payroll Items" section, add a new item "National Paid Leave - Medicare". The rate is the same amount shown next to "Medicare Company".

 

To claim the credit:

  • Note the balance of COVID-19 Expenses. This is the credit amount.
  • When paying for the Federal 941 payment, add a new item called “National Paid Leave Credit” with a negative number of the credit amount.
  • The balance of COVID-19 will be offset.
Level 1

National paid medicare & Health insr prem credits

Thanks for the comments and additional instructions - When I add the National Paid Leave - Medicare to the paycheck - it of course duplicates on the payroll summary.  Medicare Company and National Paid Leave - Medicare Company.  However when I run the quick report, I have the employee's pay, then the positive Medicare and a negative National paid leave - medicare (as stated in other posts above).  Also..are the wages subject to unemployment, haven't been able to find that answer anywhere and the "chat expert" just wanted me to upgrade my quickbooks....

QuickBooks Team

National paid medicare & Health insr prem credits

We're happy to have you here in the Community, @Izzyabster.

 

I'd like to add some more insights to help get this for FFCRA leave concern sorted out.

 

First of all, when setting up the national leave credit, make sure to use COVID 19 Expense account for both instead of utilizing the payroll liability account and payroll expense account. This will correct all your entries, including the past transactions.

 

On the other hand, it's better to run the 941 report for the quarter to get your totals instead of using the chart of accounts quick report. QuickBooks has added Worksheet 1 to the end of the 941 Form.

 

Using that worksheet, you can have the National Paid Leave Credit amount from line 2a and post the National Paid Leave-Medicare amount from line 2c. 

 

Thus, when issuing the payroll tax liability check to the US Treasury, you have to add a line to the payroll tax items with a negative number with the sick leave wages amount using the item National Paid Leave Credit and another line using National Paid Leave-Medicare with the Medicare credit amount.

 

Please see the sample snip on how it looks like: 

 

You can check this article for more information on how to how to claim my tax credits under the Family First Coronavirus Response Act

 

Keep me posted on how things turn out, Izzyabster. I'll be around to provide continued support. Keep safe!

Level 1

National paid medicare & Health insr prem credits

This has been so helpful!  Thank you so much!!!

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