Is there a report that we can use for the CARES Act, specifically the Paycheck Protection Program application?  The SBA loan application asks you to provide an Average Monthly Payroll number.  But, the payroll costs are capped at $100,000 annualized for each employee.  What is the best way to figure this out?  What are the best reports, or are ones being written?  We can start submittal for the loans tomorrow, so time is of the essence.  Thank you.

Following this thread for a reponse to Siri H question.  Needed asap. :(

Hi Siri H. and SRossWe have an article that was just published yesterday that can give you guidance. Check out  How can I provide Payroll reporting for the CARES Act (H.R. 748)? 

Also following this thread for a response.

Thank you.  No idea how I missed that as I get notifications for everything.

How is this KB article addressing the fact that these pays are not subject to the employer portion of SS? 

Per the IRS (https://www.irs.gov/newsroom/covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-and-midsize-businesses-faqs): 

The Eligible Employer is not subject to the employer portion of social security tax imposed on those wages.

When the 2 new pay codes are set up - I have not read anything that says to exempt from Federal w/h, state w/h, FICA/Medicare employee or employer - is this correct?

The tax CREDIT is that a Tax credit, all you need id a new pay type and a related G/L Account.

Bob Schmick

Robert P. Schmick

Controller

Edwin A & John O Crandell, Inc

www.eajocrandell.com

[email protected]

410-867-0200

Can you elaborate I am not following.  You need to track the employer payment of what should have been paid then in turn credit that back to yourself.  So you have a record of the in and the out. 

I believe the pay that is not subject is medicare not social securtiy.

 www.irs.gov/.../covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-and-midsize-businesses-faqs

Wait same link same section.  IRS states it is Medicare that is not imposed and the next paragraph shows the example as stating to not impose the social security tax.  So ignore my comments.  I don't know what is correct. 

It is not subject to employer SS.  Employer medicare is an allowable credit.  See the IRS guidance that I referenced.  In addition, Sec 7005 of the FFCRA states that both types of paid leave are not subject to employer SS. 

Hi Everyone,

I wanted to address the question we've been getting regarding the COVID pays that are exempt from SOC_E tax for eligible employers. The software does not have a way to exempt a single pay from a single tax.

What we recommend is paying your COVID pays on a separate check. We have created a report attached to article 103997 How do I set up pays to pay employees associated with the HR_6201 - Families First Coronavirus Response Act? that you can use to track COVID wages and tax amounts that can be deducted from your tax payments and filings.

For more information, review the IRS FAQs at https://www.irs.gov/newsroom/covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-and-midsize-businesses-faqs

page 3 of 11 says both (311a & 3111b)

Thank you!

You still have to pay, later you will be able to claim a credit. It is not material to operation to keep track of the tax

I don't see a report in the KB article you linked - can you show us where to find it?

Hi Mike,

It's there now, at the bottom of the article.

How can I open rpt file for the COVID Pays Report?

I'm confused still.  If the Sick Leave is not subject to Employer SS Tax, why would you not just delete the Accrual of the Employer SS Tax when processing the payroll check?  Maybe I am missing something.

Hi Aleisha,

Social Security Tax (SOC and SOC_E) Along with the Medicare taxes (MEDADDL, MED, MED_E) are self-adjusting. In this case, the system looks at the YTD Subject-To for SOC_E to determine what the YTD Tax should be and withholds the difference on the next check.

We do not have a way from stopping SOC_E wages from accumulating, so if you 0 out the tax, the system will add it back on to the next check along with any new tax amounts.

See this article for more information:

How Does Payroll calculate taxes?

Thanks!

IS THERE A TAX UPDATE OR DO WE HAVE TO CREATE THIS ON OUR OWN?

The report is a Report Designer based report. You can either Open and run it from report designer or can add it to your Payroll reports menu using Report Manager in Payroll. There is a link to article 18607 (How do I save, add and print a report design?) included at the bottom of KB article 103997

Hi Majormech.  I am not sure I understand the question.  There are no Payroll tax changes made to our product associated with the FFCRA Emergency pays. There is not an update that will include the setup.  If you will be providing any of your employees with the Emergency Leave associated with COVID-19, you will need to set this up manually in Payroll. Please read through KB 103997 that outlines the basic setup.

I just want to make sure I understand this correctly.  There is no way to stop the system from calculating the SOC_E so the suggestion to create COVID FMLA payments on a separate check is to is easily isolate that amounts that were calculated.  That being said, we do not pay the SOC_E but it will be recorded in my liability account, so the credit I claim on the MED_E will offset the MED_E liability but I will have to do some other journal entry or something to offset the SOC_E liability.

So I will create the new pays, create the Sick/FMLA payments on separate checks, use the COVID payroll report to identify the gross pay and MED_E amounts for claiming my credit and also to identify the SOC_E that I will have to back out from the liability recorded in the GL.

I cannot just delete the SOC_E amount from the FMLA check or it will make it up later on when the employee is back to work.  Correct?