Employer Expense summary wrong for 2nd quarter 2021 with COVID Pay

SOLVED

The employer expense summary is calculating Social Security Employer Liability for checks date in the 2nd quarter.  If you change the check date to the 1st quarter it calculates correctly.

We are on the latest tax table update.  I verified with our payroll department that the credit was extended for the 2nd quarter.

I'm on hold waiting to talk to Support.

Parents
  • 0

    We also have had the same experience and suppose that we will need to manually make some changes when we file our 2nd quarter 941.  Irritation! 

  • 0 in reply to Chris99

    Sage send me a KB write up but i couldn't find it on the knowledge base yet.  I'm worried we will get to the end of the quarter and have to make corrections.

  • +1 in reply to Bvulliamy
    verified answer

    Our tax group that changed the Employer Social Security Tax credit effective April 1, 2021 in regards to the American Rescue Plan Act, provided an internal document summarizing their notifications, including Thomson Reuters.  This is an excerpt from that document specifically regarding this subject.  

    Paid Sick and Family Leave Credits

    Changes under ARPA apply to amounts paid with respect to calendar quarters beginning after March 31, 2021.

    • Extends the FFCRA paid sick time and paid family leave credits from March 31, 2021 through September 30, 2021.
    • Provides that paid sick and paid family leave credits may each be increased by the employer's share of Social Security tax (6.2%) and employer's share of Medicare tax (1.45%) on qualified leave wages. Note: the leave is no longer exempt from employer Social Security tax, instead the tax is added to the amount of the credit resulting in no net change to the employer’s cost of providing the leave. This change is likely due to rules around the budget reconciliation process that was used to move the Act through the Senate. 

    Until IRS publishes more formal documentation, the bill is available at https://www.congress.gov/bill/117th-congress/house-bill/1319/text#toc-H0C64EDF517EE4199858EAB8014344039

Reply
  • +1 in reply to Bvulliamy
    verified answer

    Our tax group that changed the Employer Social Security Tax credit effective April 1, 2021 in regards to the American Rescue Plan Act, provided an internal document summarizing their notifications, including Thomson Reuters.  This is an excerpt from that document specifically regarding this subject.  

    Paid Sick and Family Leave Credits

    Changes under ARPA apply to amounts paid with respect to calendar quarters beginning after March 31, 2021.

    • Extends the FFCRA paid sick time and paid family leave credits from March 31, 2021 through September 30, 2021.
    • Provides that paid sick and paid family leave credits may each be increased by the employer's share of Social Security tax (6.2%) and employer's share of Medicare tax (1.45%) on qualified leave wages. Note: the leave is no longer exempt from employer Social Security tax, instead the tax is added to the amount of the credit resulting in no net change to the employer’s cost of providing the leave. This change is likely due to rules around the budget reconciliation process that was used to move the Act through the Senate. 

    Until IRS publishes more formal documentation, the bill is available at https://www.congress.gov/bill/117th-congress/house-bill/1319/text#toc-H0C64EDF517EE4199858EAB8014344039

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