H.R.6201 Families First Coronavirus Response Act and Sage 300 CRE US Payroll

Posted By Terry Todd over 4 years ago

If you use Sage 300 CRE US Payroll, the following Knowledgebase articles are now available to assist you in complying with HR 6201 Families First Coronavirus Response Act:

How do I set up pays to pay employees associated with the HR_6201 - Families First Coronavirus Response Act?

This article describes how to set up pay IDs for emergency family and medical leave and emergency paid sick leave.

Is there a report I can use to track my COVID-19 Pays?

This articles describes how to include the new pay IDs on a new report.

For more information, please refer to the https://www.irs.gov/newsroom/treasury-irs-and-labor-announce-plan-to-implement-coronavirus-related-paid-leave-for-workers-and-tax-credits-for-small-and-midsize-businesses-to-swiftly-recover-the-cost-of-providing-coronavirus

We also encourage you to work with your Sage Business Partner or consultant if you need additional assistance, and continue to follow this forum for any updates or process changes for your product as a result of this new law.

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jtebon over 4 years ago +3

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…

Parents

Jesse Gordon over 4 years ago

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
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Aleisha C. over 4 years ago in reply to Jesse Gordon

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.
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Aleisha C. over 4 years ago in reply to Jesse Gordon

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.
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Jesse Gordon over 4 years ago in reply to Aleisha C.

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!
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H.R.6201 Families First Coronavirus Response Act and Sage 300 CRE US Payroll

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