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Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

  • 1.  Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

    Posted 04-08-2020 15:26
    Edited by Michelle Taylor 04-08-2020 15:28
    ***A paycheck with BOTH Covid-19 and Regular Earnings not calculating taxes properly***

    While getting assistance with another payroll issue, Linda Raby at Sage let me know that she identified an issue yesterday when testing the new Covid-19 leave earning codes.  When an employee needs to be paid both Covid-19 and regular pay, for the time being, the employee will need to receive 2 checks: one for regular pay and one for Covid-19 pay.  Yes, this may lead to splitting deductions.

    ------------------------------
    Michelle Taylor
    ERP Consulting Manager, CS3 Technology
    918-388-9772
    ------------------------------


  • 2.  RE: Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

    Posted 04-08-2020 15:29
    .... and a splitting headache.

    ------------------------------
    Doug Higgs
    Midwest Commerce Solutions, Inc
    (312) 315-0960
    Assistant to the Traveling Secretary
    ------------------------------



  • 3.  RE: Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

    Posted 04-08-2020 15:35

    @Michelle Taylor – we ran a test payroll yesterday with COVID-19 Earnings and regular earnings and I thought I had proved out the taxes (other than withholding – I didn't check those).  Did Linda say which calculation was off? Our FICAs and Medicares were proved out, as were the specific Oregon State taxes (ORSTTT and WFD).  I'll go back to check the employer's expense summary total – I didn't add those number to make sure they totaled...

     

    Sue Bennett | President

    P. 503 620 3484 | F. 503 620 2765

    12559 SW 69th Ave | Portland, OR  97223

    sue@benpor.com   www.benpor.com
    Bennett/Porter Blogs | facebook | twitter

    image003.png@01D5FE09.5956A8F0

     

     

     

     



    ------Original Message------

    ***A paycheck with BOTH Covid-19 and Regular Earnings not calculating taxes properly***

    While getting assistance with another payroll issue, Linda Raby at Sage let me know that she identified an issue yesterday when testing the new Covid-19 leave earning codes.  When an employee needs to be paid both Covid-19 and regular pay, for the time being, the employee will need to receive 2 checks: one for regular pay and one for Covid-19 pay.  Yes, this may lead to splitting deductions.

    ------------------------------
    Michelle Taylor
    ERP Consulting Manager, CS3 Technology
    918-388-9772
    ------------------------------


  • 4.  RE: Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

    Posted 04-08-2020 15:54
    HI Sue!  She said that it is related to the deductions​ calculation - reducing the taxable wages inaccurately, thus taxing the wages inaccurately.

    ------------------------------
    Michelle Taylor
    ERP Consulting Manager, CS3 Technology
    918-388-9772
    ------------------------------

    Original Message


  • 5.  RE: Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

    Posted 04-08-2020 15:58

    Thank you Michelle!   We used a 401k plan and that looked like it worked correctly, so I'm assuming it must be a problem with Cafeteria plans.  Ruh Roh!

     

     

    Sue Bennett | President

    P. 503 620 3484 | F. 503 620 2765

    12559 SW 69th Ave | Portland, OR  97223

    sue@benpor.com   www.benpor.com
    Bennett/Porter Blogs | facebook | twitter

    image003.png@01D5FE09.5956A8F0

     

     

     

     



    ------Original Message------

    HI Sue!  She said that it is related to the deductions​ calculation - reducing the taxable wages inaccurately, thus taxing the wages inaccurately.

    ------------------------------
    Michelle Taylor
    ERP Consulting Manager, CS3 Technology
    918-388-9772
    ------------------------------


  • 6.  RE: Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

    Posted 04-08-2020 16:07
    Very glad I can share!  Yes, with Cafeteria plans.

    ------------------------------
    Michelle Taylor
    ERP Consulting Manager, CS3 Technology
    918-388-9772
    ------------------------------

    Original Message


  • 7.  RE: Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

    Posted 04-08-2020 17:00
    Client reported similar (if not identical) issue this morning.  One line of regular earnings and a second COVID earnings code.  After running PR calc report, employee was "blocked" from check printing.  Earnings less than zero error message.  I have seen this issue previously where primary tax profile earnings line was not large enough to accommodate the pretax deductions (which use the default tax profile.  In the earlier situation, adjust the tax profiles on the earnings line remedied the issue.  So we set up a new tax profile for the COVID earnings separate from the deduction tax profile. 

    Unfortunately, this is not resolve issue.  Client is now trying a second check entry for the COVID earnings only.  Will report back.

    ------------------------------
    Jeff Schwenk
    FORMER 90M Board Member
    Bottomline Software, Inc.
    Waynesboro VA
    540-221-4444
    ------------------------------

    Original Message


  • 8.  RE: Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

    Posted 04-08-2020 16:30
    Looks as if a couple people are reporting it - https://www.sagecity.com/support_communities/sage100_erp/f/sage-100-time-tracking-and-job-cost-modules/148312/social-security-tax-incorrect-for-emergency-paid-leave

    ------------------------------
    Wayne Schulz - Schulz Consulting - 860-516-8990
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  • 9.  RE: Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

    Posted 04-08-2020 17:05
    Sage City post is exactly my client's issue.

    ------------------------------
    Jeff Schwenk
    FORMER 90M Board Member
    Bottomline Software, Inc.
    Waynesboro VA
    540-221-4444
    ------------------------------

    Original Message


  • 10.  RE: Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

    Posted 04-13-2020 13:01
    Have there been any updates on this issue?  I don't see anything new on Sage City.  We have clients preparing to run another payroll and they are asking.

    ------------------------------
    Bernie Lehman
    Lehman Wesley & Associates
    ------------------------------



  • 11.  RE: Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

    Posted 04-13-2020 13:03
    I've not heard or seen any update.  I highly recommend that any COVID-19 pay be entered on a separate paycheck, at this time.

    ------------------------------
    Michelle Taylor
    ERP Consulting Manager, CS3 Technology
    918-388-9772
    ------------------------------

    Original Message


  • 12.  RE: Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

    Posted 04-13-2020 13:06
    As of Friday this issue has not been fixed. One will have to create 2 pay checks.  Anyone with Massachusetts taxes will also have to be careful as it appears that payroll tax with Covid-19 earnings code  is not correct.

    ------------------------------
    Avron Katz
    K-Four Systems, LLC
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    Original Message


  • 13.  RE: Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

    Posted 04-13-2020 13:07
    Can they do separate checks but in the same payroll batch?

    ------------------------------
    Bernie Lehman
    Lehman Wesley & Associates
    ------------------------------

    Original Message


  • 14.  RE: Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

    Posted 04-13-2020 13:34
    Click on @Wayne Schulz Sage City link above and post your concerns about client ramping up to do PR this week.  The more Sage sees our concerns, the faster they may issue a patch.  Strength through numbers!!!!

    ------------------------------
    Jeff Schwenk
    FORMER 90M Board Member
    Bottomline Software, Inc.
    Waynesboro VA
    540-221-4444
    ------------------------------

    Original Message


  • 15.  RE: Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

    Posted 04-13-2020 13:40
    Yes, can be in the same batch.

    ------------------------------
    Michelle Taylor
    ERP Consulting Manager, CS3 Technology
    918-388-9772
    ------------------------------

    Original Message


  • 16.  RE: Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

    Posted 04-13-2020 15:28
    @Michelle Taylor, thanks for sharing your expertise!​

    ------------------------------
    Bernie Lehman
    Lehman Wesley & Associates
    ------------------------------

    Original Message


  • 17.  RE: Paycheck with BOTH Covid-19 and Regular Earnings NOT calculating taxes properly

    Posted 04-14-2020 10:12
    Edited by Greg Stiles 04-14-2020 12:44
    I had an end user report yesterday that she did separate checks in the same batch and was able to confirm FICA and Medicare taxes, but reported that CA SDI was not calculated. I was not able to verify, I'm going to do some testing. Something to look out for if you are in California.

    [EDIT] End user was mistaken on CA SDI, it was calculating but the amount was "hidden" in Other Taxes.

    ------------------------------
    Greg Stiles
    S & W Microsystems
    Torrance CA
    310.787.1010
    ------------------------------

    Original Message


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