I did type the Employer FICA change in the Chat Box on the webinar today, and I did get a reply from Kevin Kawado. He says the Government issued this ruling to take place on April 1st:
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. Which, if I'm reading it correctly, means we have to charge the Employer FICA portion effective April 1st, but just like Employer Medicare has been since the start of the COVID Wage rules, the Employer FICA portion is taken out as a credit against payroll taxes when they're paid. I guess the biggest place that it makes a difference will be on the 2nd Quarter 941 Form. (Just guessing!)
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Sue Bennett
Jack of All Trades, Master of 1
Bennett/Porter & Associates, Inc.
Tigard OR
503.620.3484
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Original Message:
Sent: 04-12-2021 08:37
From: Beth Bowers
Subject: COVID pay employer FICA
Did you hear anything on this?
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Beth Bowers
Mom to Samson, Peanut, ChiChi, Canton, Cagney and Daisy (NO Oxford comma - shriek!)
Tennessee Software Solutions
269-445-1625
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Original Message:
Sent: 03-30-2021 18:06
From: Sue Bennett
Subject: COVID pay employer FICA
I just posted the question of the Payroll Group on Sage City...
Sue Bennett | President
Bennett/Porter & Associates, Inc.
P. 503 620 3484 | F. 503 620 2765
12559 SW 69th Ave | Portland, OR 97223
Email address | www.benpor.com
Bennett/Porter Blog | facebook | twitter
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Original Message:
Sent: 3/30/2021 5:31:00 PM
From: Jeff Schwenk
Subject: RE: COVID pay employer FICA
Any posts on Sage City?
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Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
Original Message:
Sent: 03-30-2021 15:10
From: Beth Bowers
Subject: COVID pay employer FICA
So who's right? Googling makes it appear it has been extended past the Mar 31 deadline.
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Beth Bowers
Mom to Samson, Peanut, ChiChi, Canton, Cagney and Daisy (NO Oxford comma - shriek!)
Tennessee Software Solutions
269-445-1625
Original Message:
Sent: 03-30-2021 15:03
From: Shari Eckersley
Subject: COVID pay employer FICA
Below is information from the Sage HRMS Q1 2021 release documentation regarding the ARPA change.
Changes for taxes, earnings, and deductions related to COVID-19
There were a few changes to Payroll resulting from the American Rescue Plan Act (ARPA):
Effective April 1, 2021, employers are no longer exempt from paying Social Security tax for
Emergency Paid Sick Leave, Emergency Paid Sick Leave for Others, and Emergency Paid Family
Leave.
The current Sage 100 payroll tax update also correctly reflects that change for any checks dated 4/1/21 or after.
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Shari Eckersley
ICS Support