I followed all the set up instructions provided under https://quickbooks.intuit.com/learn-support/en-us/help-articles/how-to-track-paid-leave-and-sick-tim...
There is one item I would like your feedback on: National Paid Leave FMLA
My question is: Why in step 6. are we selecting not to Calculate Based on Quantity? This, like the other payroll items has a maximum number of hours that can be used (12 weeks or a maximum of 10 weeks if preceded by either of the other 80 hrs paid leaves under FFCRA (you refer to as "National Paid Leave Employee and National Paid Leave Family").
It seems that we should be selecting "Calculate Based on Quantity" just as we do for the other payroll items, so that we can accurately track the hours accrued by employee. In fact, this one is even more critical to track because there may be employees using this intermittently throughout the year as they juggle their child's school/care with trying to work.
Please advice ASAP.
I'm here to help you with setting up National Paid Leave FMLA, Mellane.
When you see the Calculate Based on Quantity window, we should not select the Calculate this item based on quantity. Instead, you'll have to select Neither, then click on Next. Also, we have to make sure to set the rate at 0 and the limit is at $10,000 in the Default Rate and Limit window. Select One Time Limit from the Limit Type dropdown, and select Finish.
You also want to review this article for detailed steps about tax credits under the Family First Coronavirus Response Act.
Comment below if you have additional questions. I'm wishing you all the best. Please always stay safe.
While I appreciate that you took the time to respond, that does not answer my question. I am able to follow instructions and I pointed out that I set it up per the link I provided (which is the same article you are referencing). My question is WHY are we doing it that way and not setting it up as Calculate Based On Quantity? The Cares Act specifies leave based on not only the aggregate earnings but also up to the equivalent number of hours (10 weeks following 2 weeks of the paid sick leave). It makes sense to not only track aggregate $ amount paid out in leave, but also the hours so that we can easily keep track of remaining leave - especially when we have part time or intermittent use. I have some employees who won't hit the $200 max per day, so they are will never hit the max of $12,000, but they will hit the max number of weeks(hrs).
Please read the Cares Act carefully (relevant sections pasted below) and you will see it is not just aggregate $ that need to be tracked. THAT is why I am asking if this should instead be set up to track Based On Quantity (not "neither").
Duration of Leave For reason (5): A full-time employee is eligible for up to 12 weeks of leave (two weeks of paid sick leave followed by up to 10 weeks of paid expanded family & medical leave) at 40 hours a week, and a part-time employee is eligible for leave for the number of hours that the employee is normally scheduled to work over that period.
Calculation of Pay For leave reason (5): employees taking leave are entitled to pay at 2/3 their regular rate or 2/3 the applicable minimum wage, whichever is higher, up to $200 per day and $12,000 in the aggregate (over a 12-week period).
Any thoughts from the Intuit team who wrote those original set of instructions?
Hello, Mellane. I understand things can be confusing with all of the recent changes. The Community will be here to help with any questions you have.
We're working daily to make sure that our articles on these new processes are up-to-date and accurate. I thank you for your patience as we continue working to support you and your business.
I went ahead and took a look over the steps for national paid leave FMLA and can assure you that you're following them correctly to track paid leave under the CARES Act and FFCRA. When you reach step eight, it advises to select Neither in the Calculate Based on Quantity window. If you choose a different option, QuickBooks won't track the leave hours properly.
I recommend also keeping an eye on that same article you linked in your original post. We'll continue updating that resource with any necessary changes to the steps for tracking paid leave and sick time. You can see when it was last updated at the very top of the page, to the right of where it says "last updated".
If you have any other questions, please don't hesitate to reach out anytime. That's what I'm here for. Have yourself a great weekend!
I spent 3 hours on chat with Quickbooks yesterday, for basically the same question.
The new items you are adding are "Additions" NOT payroll items (so you can't add them on the employee timesheets, either.) You have to figure how much you are paying them and add the amount when you are running payroll.
I made up a fancy little Excel worksheet to figure the leave amounts to pay. Luckily, I only had a couple.
So I figured out that you can track hours by changing the set up to "Calculate Based on Quantity." That is the way the other payroll items are set up, so I am not sure why Intuit didn't do the same with this.
I then just created a custom payroll item detail report, filtered for just the covid related payroll items and health credits, added "Qty" to the displayed info... and voila. Easy to track.
Hope that helps!
Regarding your comment: "If you choose a different option, QuickBooks won't track the leave hours properly." Actually, if you choose Neither, it doesn't track hours at all. This is clear if you run a simple payroll item quick report (after you have run payroll using the National Paid Leave EFMLA addition) that is set up as the instructions indicate to track based on"neither." You'll will have to customize the report to display the "Qty" field, and you will clearly see that it does not track hours. How could it if we are not entering that info anywhere? And it's clear it's not calculating behind the scenes. Perhaps your team should review that one payroll item and check the requirements of tracking under the Care Act. Why do you think others on this forum are talking about using spreadsheets and manual workarounds? Because we realize we have to track hours against the EFMLA just as we do the other paid sick leave under FFCRA. In fact, it is more important that we are able to track these hours readily in QB because the EFMLA is a much longer leave period and can be taken intermittently between now and the end of the year.
I changed the tracking to be "Based on Quantity" and it works. I created a custom payroll item detail report and I can now see the hours used by and wages paid to every employee under the 3 new Covid/Cares Act payroll items, and the health credits. Works great. Perhaps worth thinking through some more on Intuit's end.
I did the same thing to track this pay. However, when I preview this quarter's 941, it does not show this pay as wages. I thought it was supposed to and don't know if I have done something wrong??
Anyone else notice this?
I've got the steps you need to get the National Paid Leave FMLA item to appear as wages on your 941 form, @dmb4.
Here are the possible reasons this item doesn't show as wages on the form:
To help fix this, let's open the payroll item from the Payroll Item List. Then, make sure the National Paid Leave FMLA is selected as the tracking type.
Once done, let's update the payroll tax table to make sure the item will show on your 941 form. I'll guide you how.
For the detailed instructions, check out this article: Get The Latest Payroll Tax Table.
Once done, you can pull up a QuickReport to understand the balances of the tax credit. Then, create a check to pay the payroll liabilities. For more information, visit this article: How To Claim My Tax Credits Under The Family First Coronavirus Response Act.
I'll be right here to help if you need anything else. Take care always, @dmb4.
I converted the 3 salaried EEs taking the E-FMLA to hourly rate so that I could enter it as hours.
My question is, to move the credit from the liability account to the offset in the expense area, will a simple journal entry take care of it