Anywhere to discuss the american rescue plan paid employee leave?

Hi there, @xdina. 

At the moment, the IRS is still working on issuing guidance regarding the implementation of the newly passed American Rescue Plan Act of 2021. Rest assured that we will update you here with the latest information. 

For more detailed information please refer to this article: IRS Statement - American Rescue Plan Act of 2021.  

I'll be attaching references in case you'll need more understanding about ARPA: American Rescue Plan Act provides PPP funding and tax breaks. 

Visit this post again if you have concerns with your QuickBooks program. I'm always here to help you again. Stay safe!

I am in the same position and need to run paychecks today.  Are there new payroll items to set up to use the ARP paid sick leave?

Susan

Hello, Susan. 

I'll hop on to this thread and give a brief update about the ARP act. 

As mentioned by my colleague, we are still waiting for updates regarding ARP instructions from the IRS. As soon as we received the update, we will also follow-up with the new payroll items to track the ARP-related elements. 

In the meantime, you can check this article to stay updated with our payroll updates: Latest payroll news and updates.

You can also read this article from the IRS regarding the ARP act: IRS Statement - American Rescue Plan Act of 2021. 

If you need help reviewing your employees' year-to-date payroll liabilities, you can check this article: Run payroll liability balances report.

Do you have other payroll-related questions? Post them here and I'll see what I can do for you. If you have other things to take care of in QuickBooks, add them to your reply and I'll help you sort them out. 

The lack of communication, let alone guidance on this topic is frustrating.  In a separate thread titled "American Rescue Plan Act Payroll Items"; we have been directed towards information on how to track employee retention credit under the CARES act, the Paycheck Protection Program, and from Quickbooks Team member AlexV that his new act "simply changed the limits so more companies qualify for it and companies that already qualified for it will get more. QuickBooks Desktop Payroll will follow the current flow" (for FFCRA payroll items), and again from AlexV in the same thread "that for both QuickBooks Online Payroll and Intuit Online Payroll, changes based on the newly enacted American Rescue Plan Act of 2021 will take effect automatically. and that currently, our team is working on extending built-in dates".   Now in this thread there is indication that perhaps new ARPA payroll items may possibly be setup, but of course we are waiting on the IRS.  Meanwhile, we have been paying people under this act.  It would seem some foresight in at least setting up the structure to capture the data would have been a reasonable response to the unknown, particularly if it varies from the FFCRA payroll item setup.

It would also seem reasonable two months after the passage of the act that, at a minimum, Quickbooks would provide concise communication and guidance across all platforms preferably in email communication to customers so that we do not have to hunt daily through forums for such information.  For instance, if AlexV is correct  and the current flow followed for FFCRA payroll items will indeed continue, then communicate such directly.  Setting up new payroll items specifically for ARPA 60 days after the fact (that are different than the current FFCRA payroll items) for those companies who have had to pay employees under ARPA beginning April 1 will likely create a payroll mess of epic proportions if it requires "fixing" those already paid.

I understand the IRS is still "working on it", but the lack of communication from Quickbooks of any guidance other than "we're working on it" (which is NOT guidance) is tremendously frustrating two months into this new law.

I am checking in again about the Quickbooks set up for ARP sick pay and credits.  I have clients who want to take advantage of this and I am unable to help them.

Susan

Hey there, @Susan T8. 

Thanks for checking back in with us. 

At this time, the IRS is still reviewing implementation plans for the newly enacted American Rescue Plan Act of 2021. Please know that we will share information as it becomes available. 

We appreciate your patience as we wait for further details from the IRS. Feel free to take a look at the IRS Statement in the meantime, which will cover more details about this process. 

Please let me know if you have additional questions or concerns. Take care and enjoy the rest of your day. You certainly deserve it!

The IRS has provided further guidance subsequent to the initial March 12 statement you provided a link for, fact sheet and accompanying statement was issued April 21: https://www.irs.gov/newsroom/employer-tax-credits-for-employee-paid-leave-due-to-covid-19 

Seems pretty evident from this fact sheet how this is intended to work. 

I have the new payroll update 22110 installed and have set up my new ARPA payroll items.  Are there instructions on running an ARPA paycheck as there were for FFCRA paycheck?  Are there any changes to the Medicare credit?

Thanks,

Susan

Hey there, @Susan T8. 

Allow me to provide you with some information about the process of the American Rescue Plan Act in your QuickBooks Desktop account. 

I've done some research and found the perfect guide to help you out with this: How to track paid leave and sick time for the coronavirus. This article will give you other links and particular steps to take a get this set up in your account. 

As for you getting the latest payroll update, check out this link to see the news and updates about it: Latest payroll news and updates. 

You can reach out to QuickBooks Community again if you need additional assistance. Simply click reply and I'll get back to you as soon as I can. Have a good one.

Yes, I have this. For the FFCRA you had instructions for processing a pay check with FFCRA wages.  Will there be updated instructions for processing a pay check with ARPA wages?

Thanks

Thank you for getting back to this thread, @Susan T8.

Since you've mentioned that you already set up a new payroll item for ARPA, you can simply create your payroll as normal to track your taxes. Let me show you how:

1. Go to the Employees menu, and select Pay Employees.
2. In the Enter Payroll Information window, select Open Paycheck Detail to make modifications to the paycheck.
3. Remove all existing items in the Earnings window.
4. In Other Payroll Items, add the payroll items you set up that are applicable to your employee’s situation. 
5. Next to each used:
   • National Paid Leave Employee/National Paid Leave Family: Add the employees’ hourly rate and quantity of hours for the pay period. If your employee is salaried, you must determine their hourly rate.
   • National Paid Leave FMLA: Add the appropriate amount if applicable.
   • National Paid Leave - Health Premium: Add the National Paid Leave - Health Premium using the same amount as your normal company-paid health insurance premium unless it was prorated. Leave your Health Insurance company contribution item as you will still need it to track the amount to pay to your insurance company.
   • National Paid Leave & Medicare Credit: Add the same amount you see under Company Summary next to Medicare Company.
6. Select Save & Next to repeat for all employees and click Save & Close.
7. When the checks are ready to be created, select Continue then, click Create Paychecks.

Once done, you can review your payroll reports to see how many hours you’ve used in these tax credits. This will ensure that you're tracking the leave correctly.

Please keep your doors open as we're waiting for more information in handling tax payments and filings for ARPA from the IRS.

Additionally, regulations and guidance from the SBA and the U.S. Department of Treasury on the PPP are evolving rapidly. To ensure you're getting the freshest updates, please refer to the latest guidance from SBA and Treasury.

Let me know if you need further assistance with this. I'm always around to provide answers and clarifications to your questions. Have a great day ahead and take care.

So, employer medicare is handled the same way for ARPA as for FFCRA?

Thanks

I can clear things out for you, Susan T8.

You're unable to set up the American Rescue Plan Act since (ARPA) since it isn't available in the system for now.

We'll definitely post updates about the American Rescue Plan Act of 2021. On the other hand, you can also visit these pages to gather and check for QuickBooks news and the latest enhancements:

• For QuickBooks Desktop: Product Updates and Industry News.
• For QuickBooks Online: The QuickBooks Blog.
  
  

Additionally, payroll is affected as to how payroll items are set up according to the tax tracking type, and employee information is recorded. 

I can route you to the right support who can check your payroll setup and check the eligibility for the provisions found under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. You can click here and then enter a brief data of your company and then Submit.

I'll be attaching references for future use: 

• New Exclusion of up to $10,200 of Unemployment Compensation
• Track your deferral payments for Social Security tax payments.
  
  

I'll be here if you have more questions. Take care always!

ARPA payroll items are available now, in the 22110 payroll update.