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Eagle2442
Level 2

Apply nonrefundable credit from Q3 941 to Q4 941

We received a Non-refundable credit for qualified sick and family leave wages (FFCRA) on our Q3 941 Worksheet 1 line 2j. I used the credit when paying our bi-weekly payroll taxes during Q4. We are also receiving a Non-refundable credit for qualified sick and family leave wages (FFCRA) on our Q4 941 Worksheet 1 line 2j. However, on page 2 of my Q4 941 report, it is showing a Balance Due ($2445.57), line 14, which is the difference between our credit from Q3 ($4414.01) and our credit in Q4 ($1968.44). I paid all payroll taxes with the exception of applying the credit from Q3 on the payment made on 10/30/2020. Can someone explain this to me?

8 Comments 8
Jen_D
Moderator

Apply nonrefundable credit from Q3 941 to Q4 941

What shows in the 941 form depends on how the payroll items are set up. To ensure everything is set up correctly, check this article for the steps to track FFCRA .How to track paid leave and sick time for the coronavirus

 

This article also discuss how to claim the credits on the form so your filing it correctly: What you need to know about the Families First Coronavirus Response Act

 

Also if you need someone to assist you on the line, I recommend reaching out to our Support Team. They can initiate a viewing session with you and can help further with your 941 reporting.

 

To get our Support, follow the steps below:

 

  1. Open QuickBooks and click the Help menu.
  2. Select QuickBooks Desktop Help.
  3. On the pop-up screen select Contact us.
  4. Click the Search for Something else button then type your concern in the Ask us anything box.
  5. Hit Search then scroll down to get your contact options.

 

Refer to this article to learn more about our contact options and support availability: Contact QuickBooks Desktop support

 

Let me know how it goes in the comment, I want to make sure this is resolved for you. I'm also here to provide further assistance with your payroll forms.

Eagle2442
Level 2

Apply nonrefundable credit from Q3 941 to Q4 941

https://quickbooks.intuit.com/learn-support/en-us/set-up-payroll/how-to-track-paid-leave-and-sick-ti...

In Step 4.8 In the Pre-tax deductions window, select the item that will reduce wages for this tax.  

What do we select or do we select anything?

MaryAnn_E
QuickBooks Team

Apply nonrefundable credit from Q3 941 to Q4 941

Hi there, @Eagle2442.

 

You can edit the payroll item that you possibly select, then check if the taxability reduce. Let me walk you through the steps on how to do it. Here's how:

 

  1. Go to the Lists menu, then select Payroll Item List.
  2. Right-click on the appropriate item, then choose Edit Payroll Item.
  3. Make any necessary changes to the Payroll Item Name, the Liability/Expense Account Associated with the item, How to Calculate the item, and/or Default Rates and Limits (Rates and Limits entered here will affect all employees).
  4. Note: You can't edit the payroll item type. If you want to change it, create a new payroll item.
  5. Select Next until you can select Finish.

 

 

Also, you can refer to this article for more information on how to modify the payroll item: How to edit a payroll item.

 

Once done, you can go back to the steps provided by my colleague and continue the setup.

 

You can check these articles for a reference on track paid leave and sick time for the coronavirus:

 

You can always reach me here for all of your QuickBooks needs. I want to ensure your success, and I'll be around anytime! 

Eagle2442
Level 2

Apply nonrefundable credit from Q3 941 to Q4 941

You state in Step 2 - Right-click on the appropriate item

What is the appropriate Payroll Item?

MarsStephanieL
QuickBooks Team

Apply nonrefundable credit from Q3 941 to Q4 941

I'd be glad to show you the payroll types you can use on tracking your employee's paid leave, @Eagle2442.

 

Different types of paid leave fall under FFCRA. When applying it to the paycheck, you have to know the reason on what is the applicable pay type. Here are the following pay types you can choose and it's payroll item type when it's your first time setting it up:

 

 

To setup, this is how it looks like when adding a new payroll item:

 

 

Once you set up your payroll item, you'll have to ensure that your selected Tax Tracking Type is based on the paid leave type that falls under FFCRA. This way, we can ensure that the hours you’ve used in your tax credits will reflect on your payroll reports.

 

Here's how: 

 

  1. Go to the List menu and select Payroll Item List
  2. Search for the payroll item and double-click it to open.
  3. Click Next until you reach the Tax Tracking type window.
  4. Select the paid leave type, such as National Paid Leave EE or National Paid Leave Family based on what you are setting up as the tax tracking type.
  5. Continue clicking Next until you reach the finish.
  6. Select Finish when you're done.

 

You can check out this article to know more details about the process: How to track paid leave and sick time for the coronavirus.

 

After you’ve run your payroll with the paid leave, you should be aware of how it affects your taxes. Under the FFCRA, you’ll get credit towards your Federal Tax deposit for the wages and Employer Paid Health Insurance premiums paid under this act.

 

You're always welcome to tag my name in the comment section if you need further assistance or other questions. Wishing you well.

Eagle2442
Level 2

Apply nonrefundable credit from Q3 941 to Q4 941

 
Eagle2442
Level 2

Apply nonrefundable credit from Q3 941 to Q4 941

 
JasroV
QuickBooks Team

Apply nonrefundable credit from Q3 941 to Q4 941

I appreciate you for getting back to us and for sharing the steps you’ve performed to solve this, @Eagle2442.

 

In regards to what payroll item to choose that will reduce wages for the tax, I recommend working with your accountant for further guidance. This way, we can ensure your accounts is well accounted for after choosing a payroll item.

 

If you’re not affiliated with one, you can visit your ProAdvisor page and look for one from there. You can also visit this link to learn more about the Families First Coronavirus Response Act (FFCRA).

 

When you’re ready to run your employee's payroll, check out the Run payroll section in this article: Get started with Payroll. Then select QuickBooks Desktop for the complete details.

 

I’ll be around to assist you if you have other concerns or questions about managing your QuickBooks. Keeping you in working order is my top priority. Keep safe and take care.
 

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