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Payroll and COVID-19

  • 1.  Payroll and COVID-19

    Posted 03-23-2020 12:13
    Does anyone have any suggestions on the following question that I got from a client regarding COVID-19 payroll tax laws? They are on Payroll 2.20 and Sage 2019. Anyone have any knowledge or insight on this new payroll tax law? 

    Client Email:
    In response to the new legislation for employee sick leave to be paid due to COVID-19, we need to set up a separate earnings code.  The main reason for this is because, per the IRS, the way companies take the credit for this is by not paying the 941 taxes (per our tax accountant just now).  In addition, social security tax is paid by the employee or employer.  Therefore, we need to set up an earnings code that meets that criteria.  Any individuals paid based on this legislation (which we do have a couple so far) will have to be processed separately. 

    Thank you,

    Michael

    ------------------------------
    Michael Davis
    Warren Averett Technology Group
    Birmingham, AL
    ------------------------------


  • 2.  RE: Payroll and COVID-19

    Posted 03-23-2020 12:27
    First, this makes an assumption that the current 941 Form process will not be changed in Sage 100 or Aatrix.  Second assumption is that if an employee is receiving earnings for this new earnings code, they are not receiving earning from another, regularly taxed earnings code.  Create and assign a new Tax Profile with appropriate Social Security Tax disabled, then run a report for the total earnings paid for the new earnings code and manually reduce the taxable wages on the 941 Form.  If I understand correctly, they will also need to manually reduce the amount of tax payable on the 941 Form, though they need to confirm with their tax accountant.  (I may have missed something!)

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



  • 3.  RE: Payroll and COVID-19

    Posted 03-23-2020 12:37
    ​I haven't paid enough attention to this yet, but is it all passed and in place? 
    Are the earnings exempt from:
    SS on both employee and employer 
    Medicare on both employee and employer 
    FWH 
    Each state is probably different yet at this point, right? 
    Thanks

    ------------------------------
    Nancy Hanson
    Blytheco LLC
    Eagan MN
    ------------------------------



  • 4.  RE: Payroll and COVID-19

    Posted 03-23-2020 12:41

    Originally the new legislation was to be effective April 2nd, but on Friday they came back out and said effective 3/20 companies could begin taking the tax credits immediately. 

     

     

    Not really sure what is going to happen on 2017 and below.

     

    Thank you

    Michael

     

    Michael H . Davis, CPA.CITP, MCSE

    Senior Consultant

    michael.davis@warrenaverett.com

    (O) 205.313.4700  

    (D) 205.313.4734  (F) 205.592.9991

    1900 International Park Dr, Suite 400, Birmingham, AL 35243

     

    To contact our Support Team, call 844.712.6223 or email software@warrenaverett.com.

     



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

    ​I haven't paid enough attention to this yet, but is it all passed and in place? 
    Are the earnings exempt from:
    SS on both employee and employer 
    Medicare on both employee and employer 
    FWH 
    Each state is probably different yet at this point, right? 
    Thanks

    ------------------------------
    Nancy Hanson
    Blytheco LLC
    Eagan MN
    ------------------------------


  • 5.  RE: Payroll and COVID-19

    Posted 03-23-2020 13:26
    Classic case for not being on the bleeding edge of change.  Will stay in the back seat and wait on the leadership in DC to explain things.  Events change daily if not hourly.

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



  • 6.  RE: Payroll and COVID-19

    Posted 03-23-2020 13:47
    Edited by Eric Lunceford 03-26-2020 06:08
    Oops, nothing to see here.



    ------------------------------
    Eric Lunceford
    First Mate Business Solutions
    Oklahoma City, OK
    877-880-8960
    https://www.firstmatellc.com/
    ------------------------------



  • 7.  RE: Payroll and COVID-19

    Posted 03-23-2020 14:08
    Does anyone have a link to documentation regarding the effective date changing to 3/20/20?

    ------------------------------
    Shari Eckersley
    ICS Support
    ------------------------------



  • 8.  RE: Payroll and COVID-19

    Posted 03-23-2020 14:32
    Try this one @Shari Eckersley  https://www.dol.gov/agencies/whd/pandemic

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



  • 9.  RE: Payroll and COVID-19

    Posted 03-23-2020 17:27
    New posting on Sage City from Elliot in regards to what Sage is doing in payroll to handle requirements of the Families First Coronavirus Response Act:


     Sage is currently working on the changes for this FFCRA, and more details will follow as far as setting this up for the new Response Act.  In all likelihood there will be new earnings Tax Rules for this.

    Elliott



    ------------------------------
    Shari Eckersley
    ICS Support
    ------------------------------



  • 10.  RE: Payroll and COVID-19

    Posted 03-24-2020 08:48

    Thank you everyone.

    Hopefully Sage will posted some guidance soon.

    Michael

     

    Michael H . Davis, CPA.CITP, MCSE

    Senior Consultant

    michael.davis@warrenaverett.com

    (O) 205.313.4700  

    (D) 205.313.4734  (F) 205.592.9991

    1900 International Park Dr, Suite 400, Birmingham, AL 35243

     

    To contact our Support Team, call 844.712.6223 or email software@warrenaverett.com.

     



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

    New posting on Sage City from Elliot in regards to what Sage is doing in payroll to handle requirements of the Families First Coronavirus Response Act:


     Sage is currently working on the changes for this FFCRA, and more details will follow as far as setting this up for the new Response Act.  In all likelihood there will be new earnings Tax Rules for this.

    Elliott



    ------------------------------
    Shari Eckersley
    ICS Support
    ------------------------------


  • 11.  RE: Payroll and COVID-19

    Posted 04-01-2020 10:52
    Anyone seen updates on reporting for this?  clients are coming out of the woodwork wanting PR information for filing for assistance on 4/3.  I think it is for form 7200.

    ------------------------------
    alan niergarth
    Velosio LLC
    ------------------------------



  • 12.  RE: Payroll and COVID-19

    Posted 04-01-2020 10:57
    Sage City sent out notification to my customer that they will be releasing something on 4/3 on Sage City.


    ------------------------------
    Nancy Hanson
    Blytheco LLC
    Eagan MN
    ------------------------------



  • 13.  RE: Payroll and COVID-19

    Posted 04-01-2020 11:07

    Speaking of which – Just confirming that our understanding is that the Employee Wages are taxable for all three earnings codes that need to be set up but Employer FICA is NOT taxable.  (Employer Medicare, yes, but Employer FICA, No.)  Is that everyone else's understanding?  (We got that from an article by CliftonLarsenAllen – our accounting firm.)

     

    Sage will no doubt put the programming into the Earnings Codes for 2018, 2019 and 2020, but for clients who have been unable to upgrade (mostly because of major program mods), we'll have to do some things to force the program to do what we want it to.

     

    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------

    Sage City sent out notification to my customer that they will be releasing something on 4/3 on Sage City.


    ------------------------------
    Nancy Hanson
    Blytheco LLC
    Eagan MN
    ------------------------------


  • 14.  RE: Payroll and COVID-19

    Posted 04-01-2020 11:13
    For payroll 2018 and higher I expect that we'll have to set up a new tax profile with the employer exemption for FICA and assign that profile to the earnings line during payroll data entry.  

    For payroll 2017 and below I expect that we'll have to set up new earnings codes with the appropriate tax flags.

    ------------------------------
    Mary Jo Krueger
    Senior Software Consultant
    CLA (CliftonLarsonAllen LLP)
    Appleton WI
    920-996-1176
    ------------------------------



  • 15.  RE: Payroll and COVID-19

    Posted 04-01-2020 11:39
    I do know Sage is coming out with new Tax Rules for COVID for 2018/2019/2020, but this is when I really miss being to set our own taxes.  So very easy on 2017 to simply uncheck a tax box, whether it is for the Employee or the Employer.  I SO miss being able to do that on the current versions!

    ------------------------------
    Sue Bennett
    Jack of All Trades, Master of 1
    Bennett/Porter & Associates, Inc.
    Tigard OR
    503.620.3484
    ------------------------------



  • 16.  RE: Payroll and COVID-19

    Posted 04-01-2020 11:19
    I see verbiage on tax credits but nothing to indicate not taxable for employer Fica.  I see verbiage that employers can withhold from depositing the employer & employee share of taxes but that's just not having to take on the burden of the cash flow for the deposits.
    N​

    ------------------------------
    Nancy Hanson
    Blytheco LLC
    Eagan MN
    ------------------------------



  • 17.  RE: Payroll and COVID-19

    Posted 04-01-2020 11:44

    We can find absolutely nothing on the IRS website and we've been searching it for days – only how to take the tax credits.  But this is from our accounting firm...

     

    https://www.claconnect.com/resources/articles/2020/faqs-regarding-covid-19-and-human-capital-tax-impact

     

     

    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------

    I see verbiage on tax credits but nothing to indicate not taxable for employer Fica.  I see verbiage that employers can withhold from depositing the employer & employee share of taxes but that's just not having to take on the burden of the cash flow for the deposits.
    N​

    ------------------------------
    Nancy Hanson
    Blytheco LLC
    Eagan MN
    ------------------------------


  • 18.  RE: Payroll and COVID-19

    Posted 04-01-2020 15:38
    Just received confirmation from our "other" Payroll provider (Kronos) who confirms that the Employer FICA is neither accrued nor expensed nor owed, while the Employee FICA is indeed deducted from the Employee paycheck when paying wages related to COVID-19 when those wages were earned on or after April 1st.

    ------------------------------
    Sue Bennett
    Jack of All Trades, Master of 1
    Bennett/Porter & Associates, Inc.
    Tigard OR
    503.620.3484
    ------------------------------



  • 19.  RE: Payroll and COVID-19

    Posted 04-02-2020 10:43
    ​You mentioned that you would be setting up three new earnings codes.  Emergency Paid Sick Leave Act (E-PSLA) and Emergency Family Medical Leave Act (E-FMLA), but what is the third earnings code that should be set up?

    ------------------------------
    Sue Wolf
    Senior Technology Consultant
    Chortek LLP, Appleton, WI
    m: 920-202-1011
    e: swolf@chortek.com
    ------------------------------



  • 20.  RE: Payroll and COVID-19

    Posted 04-02-2020 13:07
    E-PSLO: Emergency Paid Sick Leave - Others is the third one.

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



  • 21.  RE: Payroll and COVID-19

    Posted 04-02-2020 13:31

    Apparently I replied directly to Sue, without replying to the Group!  Sorry!  We have set up two different Earnings Codes for COVID-19 itself:  One for the Employee who gets 100% of his pay because he meets the qualifications to do so (up to 80 hours).  The second Earnings Code is for the Employee who gets 2/3 of his pay (again, up to 80 hours) because he has a family member or meets the other qualifications to get that 2/3 pay.  The third Earnings Code is for FMLA which is the extended sick leave.

     

    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------

    E-PSLO: Emergency Paid Sick Leave - Others is the third one.

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


  • 22.  RE: Payroll and COVID-19

    Posted 04-02-2020 17:43

    Dang it!  I just received a Notice 2020-22 (which I believe is from the IRS) from a client, that indicates we are supposed to show the Employer FICA Tax on the quarterly reports, but then take it back as a credit just like we do the COVID earnings and taxes.  So two different Payroll processors and one national accounting firm say the COVID-19 Earnings are not Employer FICA taxable, while the notice I just received is not crystal clear about it, but tends to indicate it is.   The end result is the same whether clients accrue it as an employer expense and then deduct it or just not accrue it at all.  But – it also depends on what the changes might be to the 941 Form to record all of the COVID related earnings/taxes/healthcare, etc.  Now I'm back to not knowing exactly what to do with those earnings for the v2017 clients.  Dang it!  Guess we'll have to wait and see what Sage does with it, eh?

     

    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------

    Apparently I replied directly to Sue, without replying to the Group!  Sorry!  We have set up two different Earnings Codes for COVID-19 itself:  One for the Employee who gets 100% of his pay because he meets the qualifications to do so (up to 80 hours).  The second Earnings Code is for the Employee who gets 2/3 of his pay (again, up to 80 hours) because he has a family member or meets the other qualifications to get that 2/3 pay.  The third Earnings Code is for FMLA which is the extended sick leave.

     

    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

     

     

     

     





  • 23.  RE: Payroll and COVID-19

    Posted 04-02-2020 21:41
    I thought the instructions were very clear. It goes as a credit. If you have a credit of $5,000 and only $4,000 in tax liability, it is refunded by the IRS. You would should employer taxes as a negative.

    ------------------------------
    Myron Stevenson
    Consultant
    Clearis Consulting, Inc
    Duluth, MN
    218-525-6720
    ------------------------------



  • 24.  RE: Payroll and COVID-19

    Posted 04-03-2020 00:30
    Hi Myron. The question was whether or not the Earnings Codes we set up are FICA taxable for the Employer on COVID earnings. You are correct in how to get your money back - pretty straight forward.


    Sent from my iPhone
    Sue Bennett
    Bennett/Porter & Associates, Inc.

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

    I thought the instructions were very clear. It goes as a credit. If you have a credit of $5,000 and only $4,000 in tax liability, it is refunded by the IRS. You would should employer taxes as a negative.

    ------------------------------
    Myron Stevenson
    Consultant
    Clearis Consulting, Inc
    Duluth, MN
    218-525-6720
    ------------------------------


  • 25.  RE: Payroll and COVID-19

    Posted 04-01-2020 11:33
    New earnings tax rules will be created which will be incorporated into the tax update.

    ------------------------------
    Shari Eckersley
    ICS Support
    ------------------------------



  • 26.  RE: Payroll and COVID-19

    Posted 04-02-2020 13:57
    I receive daily e-mails from the AICPA.  Below is a link to an all inclusive resource center.  If you are a member of the AICPA you can attend the webinars at no charge and receive CPE.  If you are not member, the cost is $29.  I am attending webinars today and tomorrow.

    https://www.aicpa.org/news/aicpa-coronavirus-resource-center.html?utm_medium=email&SubscriberID=111001521&utm_source=FVSNews&Site=aicpa&LinkID=8831092&utm_campaign=APRFVSnews&cid=email:FVSNews:APRFVSnews:https%3a%2f%2fwww.aicpa.org%2fnews%2faicpa-coronavirus-resource-center.html:aicpa&SendID=269244&utm_content=A20APR03

    ------------------------------
    [Michele] [Herzog] [CPA,CITP, CGMA]
    [Overland Park] [KS]
    [816-520-1365]
    ------------------------------



  • 27.  RE: Payroll and COVID-19

    Posted 04-03-2020 19:29
      |   view attached
    New posting today on SageCity:  

    SAGE 100: FAMILIES FIRST CORONAVIRUS RESPONSE ACT H.R. 6201 AND SAGE 100 PAYROLL PROGRAM FIX PR6024T

    And this was added to the KB:






    ------------------------------
    Karen O'Lane
    Accounting Systems, Inc. (ASI)
    Fresno CA
    803.252.6154 x242
    559.577.4142
    90Minds Board Member at Large
    ------------------------------



  • 28.  RE: Payroll and COVID-19

    Posted 04-03-2020 18:58
    Latest on Sage KB regarding Families First Coronavirus Response Act (FFCRA) 

    How do I set up to pay employees Emergency Paid Sick Leave and Emergency Family Medical Leave associated with the HR_6201 - Families First Coronavirus Response Act (FFCRA) in Sage 100?

    Program Fix PR6024T for Sage 100 Payroll 2.20.1

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



  • 29.  RE: Payroll and COVID-19

    Posted 04-03-2020 19:45
    Thank you!  I looked for this earlier today.

    ------------------------------
    [Michele] [Herzog] [CPA,CITP, CGMA]
    [Overland Park] [KS]
    [816-520-1365]
    ------------------------------



  • 30.  RE: Payroll and COVID-19

    Posted 04-05-2020 14:08
    I have a couple of questions.

    First, has anyone made a "cheat sheet" to provide to customers? I doubt many of mine will read the Sage KB and understand it. I started one here but want to add a section that greatly simplifies the instructions.

    Second, to simplify the instructions, I am curious whether the Sage user has to manually track these numbers or will Sage automatically cut off the amounts at the maximum rate? The way I read this it seems like the users have to manually calculate this but I'm not sure. Perhaps somewhere else in the KB article Sage was more explicit? 

    Emergency Paid Family Medical Leave (EPFMLA) – (Section 3601)
    Use Tax Rule -800123 for Emergency Paid Family and Medical Leave Note: When using this Earnings Code in Payroll Data Entry, you must not exceed the maximum $200 per day and maximum $10,000 for 10 weeks per employee.

    Emergency Sick Leave Self (EPSLS) – (Section 3602)
    Use Tax Rule -800121, Emergency Paid Sick Leave – Self Note: When using this earnings code in Payroll Data Entry, you must not exceed the maximum $511 per day and maximum $5110 for 10 days per employee.

    Emergency Paid Sick Leave Others (EPSLO)
    Use Tax Rule -800125, Emergency Paid Sick Leave - Others Note: When using this earnings code in Payroll Data Entry, you must not exceed the maximum $200 per day and maximum $2000 for 10 days per employee.



    ------------------------------
    Wayne Schulz - Schulz Consulting - 860-516-8990
    ------------------------------



  • 31.  RE: Payroll and COVID-19

    Posted 04-05-2020 16:42

    Are you creating new GL accounts or just using the social security GL numbers? 


    ------------------------------
    Wayne Schulz - Schulz Consulting - 860-516-8990
    ------------------------------



  • 32.  RE: Payroll and COVID-19

    Posted 04-05-2020 17:16
    I'm going to advise clients to create new GL accounts.  I figure the more detailed tracking they have regarding this the better.

    ------------------------------
    Shari Eckersley
    ICS Support
    ------------------------------



  • 33.  RE: Payroll and COVID-19

    Posted 04-06-2020 02:09
    I have done all the updates and setup for my clients.  The Sage document does not include that you need to go into Department Maintenance and enter a GL account for "Other Employer Taxes".  I did create a new GL account for Social Security and Medicare.  I ran some test payrolls and the employer portion of Social Security and Medicare does not get calculated and therefore is not included in the payment amount on the Employer Expense Report.  The amounts that go into the new GL account are the employee amounts for the Social Security and Medicare on the 3 new earnings codes.  Having this separate will be great for reconciliation purposes.  Attached is a word document I sent to my clients. @Wayne Schulz I used part of your document as I was getting all the updates in place before I started on a document, so Thank You!  Also attached are some pdf files from AICPA webinars I attended this week.​

    ------------------------------
    [Michele] [Herzog] [CPA,CITP, CGMA]
    [Overland Park] [KS]
    [816-520-1365]
    ------------------------------



  • 34.  RE: Payroll and COVID-19

    Posted 04-06-2020 08:20
    Thanks, @Michele Herzog - can you clarify this portion

    • The Employer Social Security and Medicare Taxes will Not be calculated when any of the 3 new earnings codes are used and they will not be paid on your 941 payments.

    Is there no employer portion?
    If there is an employer portion - is there a special way this is picked up since your testing shows that it doesn't appear on the employer expense report?​​

    ------------------------------
    Wayne Schulz - Schulz Consulting - 860-516-8990
    ------------------------------



  • 35.  RE: Payroll and COVID-19

    Posted 04-06-2020 08:39
    Edited by Wayne Schulz 04-06-2020 08:39
    I'm curious about which specific GL accounts seem necessary/advisable ( Note: I understand I can copy in the existing SS/Medicare numbers --- my more specific question here is which of these warrant fresh new GL accounts and NOT whether I need to put something in the GL fields).

    There appear to be up to three areas that might need GL accounts:

    1. Department Maintenance
    2. Earnings Code
    3. Company Tax Group setup

    ------------------------------
    Wayne Schulz - Schulz Consulting - 860-516-8990
    ------------------------------



  • 36.  RE: Payroll and COVID-19

    Posted 04-06-2020 08:45
    THANK YOU @Michele Herzog​​

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



  • 37.  RE: Payroll and COVID-19

    Posted 04-06-2020 10:28

    @Wayne Shultz – indeed the Employer portion of FICA is not calculated/owed on the COVID-19 Wages, but the Employer portion of Medicare is indeed calculated and owed.  It is only Employer FICA that is exempt.  I suspect we'll have to use the COVID-19 earnings codes to reconcile the quarterly taxes since the employer portion will be missing on those particular earnings codes.  Or maybe the 941 Form will change for the Second Quarter to account for the COVID-19 wages.

     

    We ran a couple of payrolls this weekend and was kinda surprised that we were not "warned" when we paid over the daily maximum or when we went over the total wage maximum paid for the 80 hours.  Did we  miss a step somewhere, or did the programmers not write in the maximum payments allowed?

     

    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------

    Thanks, @Michele Herzog - can you clarify this portion

    • The Employer Social Security and Medicare Taxes will Not be calculated when any of the 3 new earnings codes are used and they will not be paid on your 941 payments.

    Is there no employer portion?
    If there is an employer portion - is there a special way this is picked up since your testing shows that it doesn't appear on the employer expense report?​​

    ------------------------------
    Wayne Schulz - Schulz Consulting - 860-516-8990
    ------------------------------


  • 38.  RE: Payroll and COVID-19

    Posted 04-06-2020 10:34

    Whoops!  Hold on that – Employer Medicare was NOT originally supposed to be exempt for the Employer, but we're double checking that now.  Sounds like maybe that changed too!  More news when we find out!

     

    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------

    @Wayne Shultz – indeed the Employer portion of FICA is not calculated/owed on the COVID-19 Wages, but the Employer portion of Medicare is indeed calculated and owed.  It is only Employer FICA that is exempt.  I suspect we'll have to use the COVID-19 earnings codes to reconcile the quarterly taxes since the employer portion will be missing on those particular earnings codes.  Or maybe the 941 Form will change for the Second Quarter to account for the COVID-19 wages.

     

    We ran a couple of payrolls this weekend and was kinda surprised that we were not "warned" when we paid over the daily maximum or when we went over the total wage maximum paid for the 80 hours.  Did we  miss a step somewhere, or did the programmers not write in the maximum payments allowed?

     

    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

     

     

     

     





  • 39.  RE: Payroll and COVID-19

    Posted 04-06-2020 10:54

    Okay – the ruling is that FICA wages are Employer Exempt, but Medicare is still supposed to be "charged" on COVID-19 wages.  However, it is deducted back out as part of the credit when you get when you pay the Payroll Taxes.  Still – the IRS says it is supposed to be charged each payroll, as opposed to FICA, which indeed is Employer Exempt.

     

    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------

    Whoops!  Hold on that – Employer Medicare was NOT originally supposed to be exempt for the Employer, but we're double checking that now.  Sounds like maybe that changed too!  More news when we find out!

     

    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

     

     

     

     





  • 40.  RE: Payroll and COVID-19

    Posted 04-06-2020 10:58
      |   view attached
    From the information I received from CPA Tax Advisor, the AICPA and attending AICPA webinars the Employer Medicare is exempt. (This is my take away.)  The AICPA pdf I attached on the Family Care Act shows examples where the Employer Medicare is part of the credit.  

    In the Family First webinar it was stated the Employer portion of Social Security and Medicare are not paid in to help provide immediate relief.  A new credit field is supposed to be added to the 941, I am guessing for reconciliation purposes or if an employer overpaid.  The details are yet to come on this.

    I have seen changes and additions made daily, so please do not take information I am providing as the final word. 

    In regards to GL accounts, I only setup 1 liability account in which the Employee portion of Social Security and Medicare will go to.  When it comes to reconciliation time for the 941 and/or an SBA loan this will be valuable having this separate.  Since the wages are taxable to an Employee, I made the GL account in the Earnings Code Maintenance the same as Regular Wages.  In Payroll Department Maintenance, I used the same GL account in alignment with the rest on the setup screen as the The Earning Report can be used for the specific code. 

    Also, attached is an updated word document I sent to my clients.  I added the reports and forms that have changes.

    ------------------------------
    [Michele] [Herzog] [CPA,CITP, CGMA]
    [Overland Park] [KS]
    [816-520-1365]
    ------------------------------

    Attachment(s)



  • 41.  RE: Payroll and COVID-19

    Posted 04-06-2020 11:37
    These payments are subject to Employer Medicare. 

    The description on the KB is a little confusing, but the tax rules properly exclude Employer SS, but do charge Employer Med. 

    The Medicare is recoverable, though, along with the paid leave and health insurance as a credit to 941 deposits or on the 941 (whether simply added to deposits for quarter or as a separate line), or by filing the form 7200 to claim amounts which exceed tax deposit liability.

    ------------------------------
    Eric Lunceford
    First Mate Business Solutions
    Oklahoma City, OK
    877-880-8960
    https://www.firstmatellc.com/
    ------------------------------



  • 42.  RE: Payroll and COVID-19

    Posted 04-06-2020 11:47
    Yes, I part of my sentence I used the word "Exempt" and in another part I used "Credit".  I should have used "Credit thru out for Medicare.  On the AICPA webinar it was discussed as a credit.

    ------------------------------
    [Michele] [Herzog] [CPA,CITP, CGMA]
    [Overland Park] [KS]
    [816-520-1365]
    ------------------------------



  • 43.  RE: Payroll and COVID-19

    Posted 04-06-2020 11:48

    I can see why this is so confusing – we just keep getting different answers from different folks.  However, on the IRS website, (https://www.irs.gov/newsroom/covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-and-midsize-businesses-faqs#how_to_claim) question 10 mentions that Employers are required to pay Medicare on Leave Wages, and also mentions that the FICA is not employer taxable.  I think the confusion over Medicare is due to the fact that Employers are able to deduct the Medicare expense from their tax payments, but the way I read this, it is "chargeable" to the Employer.

     

     

     

     

     

    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------

    From the information I received from CPA Tax Advisor, the AICPA and attending AICPA webinars the Employer Medicare is exempt. (This is my take away.)  The AICPA pdf I attached on the Family Care Act shows examples where the Employer Medicare is part of the credit.  

    In the Family First webinar it was stated the Employer portion of Social Security and Medicare are not paid in to help provide immediate relief.  A new credit field is supposed to be added to the 941, I am guessing for reconciliation purposes or if an employer overpaid.  The details are yet to come on this.

    I have seen changes and additions made daily, so please do not take information I am providing as the final word. 

    In regards to GL accounts, I only setup 1 liability account in which the Employee portion of Social Security and Medicare will go to.  When it comes to reconciliation time for the 941 and/or an SBA loan this will be valuable having this separate.  Since the wages are taxable to an Employee, I made the GL account in the Earnings Code Maintenance the same as Regular Wages.  In Payroll Department Maintenance, I used the same GL account in alignment with the rest on the setup screen as the The Earning Report can be used for the specific code. 

    Also, attached is an updated word document I sent to my clients.  I added the reports and forms that have changes.

    ------------------------------
    [Michele] [Herzog] [CPA,CITP, CGMA]
    [Overland Park] [KS]
    [816-520-1365]
    ------------------------------


  • 44.  RE: Payroll and COVID-19

    Posted 04-06-2020 15:04
    @Sue Bennett and @Michele Herzog
    In the document from Sage, under the EPSLS - it indicates 80 hours paid sick leave for an employee and the if taking care of child or another individual then .666 pay.  Are you understand this 'taking care of child/other individual' is really the EPSLO as there is no description under the EPSLO? 
    also:  is the EPSLS at full pay rate for the employee right?

    Sage did make a caveat at the bottom of the document that you have to manually track the maximums, so I took this as no programming for that feature.

    Are you suggesting that employers run these payrolls as separate payrolls to aid in tracking or lump them together in with their regular payroll?

    Thanks
    N​

    ------------------------------
    Nancy Hanson
    Blytheco LLC
    Eagan MN
    ------------------------------



  • 45.  RE: Payroll and COVID-19

    Posted 04-06-2020 15:31

    @Nancy Hanson – I believe you are correct on the EPSLO being the .666 pay for taking care of child/other individual.  (Not sure why the KB article came out the way it did with #4 including both types of pay.)  Yes the EPSLS – COVID-19 if the employee gets the virus – is at full pay.

     

    I did confirm with Elliott that you have to manually track the limits – both the daily limit and the total amount limits.  I thought maybe they would put an "alert" in the system, but alas, it is not there.

     

    And depending on the number of employees in the Payroll, many of our clients are running just one Payroll for everything.  But I think it would simplify things a bit in the reconciliation process if you did run these as separate payrolls – good idea!  Especially when we don't know what the 941 Form will require in the 2nd and 3rd Quarters.

     

    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------

    @Sue Bennett and @Michele Herzog
    In the document from Sage, under the EPSLS - it indicates 80 hours paid sick leave for an employee and the if taking care of child or another individual then .666 pay.  Are you understand this 'taking care of child/other individual' is really the EPSLO as there is no description under the EPSLO? 
    also:  is the EPSLS at full pay rate for the employee right?

    Sage did make a caveat at the bottom of the document that you have to manually track the maximums, so I took this as no programming for that feature.

    Are you suggesting that employers run these payrolls as separate payrolls to aid in tracking or lump them together in with their regular payroll?

    Thanks
    N​

    ------------------------------
    Nancy Hanson
    Blytheco LLC
    Eagan MN
    ------------------------------


  • 46.  RE: Payroll and COVID-19

    Posted 04-06-2020 15:37
    Thank you to everyone for sharing their updated info - it is very much appreciated!

    ------------------------------
    Wayne Schulz - Schulz Consulting - 860-516-8990
    ------------------------------



  • 47.  RE: Payroll and COVID-19

    Posted 04-06-2020 16:21
    From a customer with a larger payroll ( probably 125+ ):

    I downloaded the payroll update this am and put the proper tax code on it.

    We had 60 hours in the payroll of people out on EPSLS. We opted out of the other two pay types.


    I didn't realize you could opt out of the various pay types - though the DOL regulations seem to say either or: 

    • Two weeks (up to 80 hours) of paid sick leave at the employee's regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis; or

    • Two weeks (up to 80 hours) of paid sick leave at two-thirds the employee's regular rate of pay because the employee is unable to work because of a bona fide need to care for an individual subject to quarantine (pursuant to Federal, State, or local government order or advice of a health care provider), or to care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of the Treasury and Labor; and
    • Up to an additional 10 weeks of paid expanded family and medical leave at two-thirds the employee's regular rate of pay where an employee, who has been employed for at least 30 calendar days, is unable to work due to a bona fide need for leave to care for a child whose school or child care provider is closed or unavailable for reasons related to COVID-19.



    ------------------------------
    Wayne Schulz - Schulz Consulting - 860-516-8990
    ------------------------------



  • 48.  RE: Payroll and COVID-19

    Posted 04-06-2020 16:23

    I haven't heard of an opt-out capability either!

     

    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------

    From a customer with a larger payroll ( probably 125+ ):

    I downloaded the payroll update this am and put the proper tax code on it.

    We had 60 hours in the payroll of people out on EPSLS. We opted out of the other two pay types.


    I didn't realize you could opt out of the various pay types - though the DOL regulations seem to say either or: 

    • Two weeks (up to 80 hours) of paid sick leave at the employee's regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis; or

    • Two weeks (up to 80 hours) of paid sick leave at two-thirds the employee's regular rate of pay because the employee is unable to work because of a bona fide need to care for an individual subject to quarantine (pursuant to Federal, State, or local government order or advice of a health care provider), or to care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of the Treasury and Labor; and
    • Up to an additional 10 weeks of paid expanded family and medical leave at two-thirds the employee's regular rate of pay where an employee, who has been employed for at least 30 calendar days, is unable to work due to a bona fide need for leave to care for a child whose school or child care provider is closed or unavailable for reasons related to COVID-19.



    ------------------------------
    Wayne Schulz - Schulz Consulting - 860-516-8990
    ------------------------------


  • 49.  RE: Payroll and COVID-19

    Posted 04-06-2020 16:25
    I haven't either, but thinking as long as they are doing better than the Act indicates (paying full pay for taking care of a child), they would be ok.  My concern would be if they are going to pay full pay for 10 weeks for daycare/school closure situations.

    ------------------------------
    Nancy Hanson
    Blytheco LLC
    Eagan MN
    ------------------------------



  • 50.  RE: Payroll and COVID-19

    Posted 04-06-2020 16:28
    Update - the above company employs EMTs so they may have a special right to opt-out 

    Q: What about health care providers and emergency responders?

    A: An Employer whose employee(s) is a health care provider or an emergency responder may exclude such employees from the EPSLA's Paid Sick Leave requirements and/or the EFMLEA's Expanded Family and Medical Leave requirements. The DOL regulations construe the list of healthcare providers and emergency responders extremely broadly, and includes not only physicians and nurses, but also all doctor's office employees, laboratory workers, and those manufacturing medical products. Simultaneously, however, the FAQs encouraged employers to be "judicious" in using the exception at the risk of spreading the virus.



    ------------------------------
    Wayne Schulz - Schulz Consulting - 860-516-8990
    ------------------------------



  • 51.  RE: Payroll and COVID-19

    Posted 04-06-2020 17:23
    Edited by Nancy Hanson 04-06-2020 17:39
    I just ran my first payroll on my local system.  The employers expense summary shows $0 for SS Earnings and Medicare Earnings but does then show a column for Disability/Other Earnings with the amounts in that column and the taxes are also in the disability/other tax.  Is this what others are seeing?  @Sue Bennett - in your testing?
    I also followed this thru to W2 (2019 format) and the SS Wages/Withholding, Medicare Wages/Withholding are all blank too.  

    Will all voluntary deductions be taken out of these earnings?  401k?  HI?  etc.  and will be treated like regular earnings for pretax deductions?

    ------------------------------
    Nancy Hanson
    Blytheco LLC
    Eagan MN
    ------------------------------



  • 52.  RE: Payroll and COVID-19

    Posted 04-06-2020 17:45

    @Nancy Hanson – if you attempt to run a payroll with just COVID earnings, the only thing that will show on Page 1 is the Employer's Expense – and you're right, Medicare shows under Disability/Other Earnings.  The second page shows the breakout with the Employee FICA and Employee Medicare as well as Employer Medicare.

     

    If you run a payroll with regular earnings and COVID Earnings, then the first page of the Employer's Expense Summary populates the regular pay taxes in the columns that we're used to seeing for FICA and Medicare, but still throwing the Employer Medicare portion of COVID pay into that Disability / Other Earnings column.

     

    I think Sage is trying to break out the COVID-Expenses separately from the regular expenses...but it will be more confusing, I think, if someone is using that Disability field for...um...Disability.

     

    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------

    I just ran my first payroll on my local system.  The employers expense summary shows $0 for SS Earnings and Medicare Earnings but does then show a column for Disability/Other Earnings with the amounts in that column and the taxes are also in the disability/other tax.  Is this what others are seeing?  @Sue Bennett - in your testing?
    I also followed this thru to W2 (2019 format) and the SS Wages/Withholding, Medicare Wages/Withholding are all blank too.  

    Will all voluntary deductions be taken out of these earnings?  401k?  HI?  etc.  and will be treated like regular earnings for pretax deductions?

    ------------------------------
    Nancy Hanson
    Blytheco LLC
    Eagan MN
    ------------------------------



  • 53.  RE: Payroll and COVID-19

    Posted 04-06-2020 17:26
    Edited by alan niergarth 04-06-2020 17:26
    As to updating Tax profiles, if I am looking at this correctly it appears each Tax profile needs to be manually edited to check all of the new Federal boxes added to the profiles by the update.  But we do not need to create new profiles.  Is this a correct assumption.  Some of our clients have over 100 profiles and we have not seen a way to import to this table as a method to set the boxes to Y.

    ------------------------------
    alan niergarth
    Velosio LLC
    ------------------------------



  • 54.  RE: Payroll and COVID-19

    Posted 04-07-2020 10:57
    If we have an existing Tax Profile that applies to all employees, do we check the boxes?  If the employee doesn't have Covid-19 related earnings code, will the payroll taxes be calculated correctly if these boxes are checked?


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



  • 55.  RE: Payroll and COVID-19

    Posted 04-07-2020 11:56
    Yes, you still check all the boxes.  The tax profile on the earnings code will drive the tax calculation.

    ------------------------------
    [Michele] [Herzog] [CPA,CITP, CGMA]
    [Overland Park] [KS]
    [816-520-1365]
    ------------------------------



  • 56.  RE: Payroll and COVID-19

    Posted 04-07-2020 12:11
    Thanks @Michele Herzog for this and all of your other posts pertaining to this.  Your work has saved us all a lot of time and effort.  

    I wonder why Sage didn't program PR6024T to check the boxes on all of the existing tax profiles.   ​​​​​​​

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



  • 57.  RE: Payroll and COVID-19

    Posted 05-07-2020 14:23
    Looks like there is an update to PR6024T as of 04/20/2020 to resolve the Employer Expense subtotal so that it now ties to the detail (ie subtotals).  Also, I am being told there is a tax table update as of 04/30/2020 that resolves the mixing of covid and non covid earnings.  I have not verified either personally.  The source was Sage support, so this is more than a rumor.

    ------------------------------
    Larry Bradford
    Accounting Technology LLC Consultant and Owner
    Accounting Technology, LLC
    Fairfax VA
    703-913-3500
    ------------------------------



  • 58.  RE: Payroll and COVID-19

    Posted 05-07-2020 14:34

    Larry is correct.  The tax engine had to be revised to handle the COVID-19 earnings when the employee had a Cafeteria Plan deduction.  If regular earnings and COVID Earnings were on the same check, the Cafeteria Plan would be taken out twice.  Or, if there were two types of COVID earnings, again the Cafeteria Plan would be taken out with each one.  The Tax Update on 04/30 fixed that – nothing to install, other than to run the Tax Engine update.

     

    As far as the Employer's Expense report, there were two PR6024T's issued.  The one issued on 04/14 is NOT correct, and you need to install the one dated 04/20.  (When I was doing the Beta, I knew I had PR6024T installed, but I didn't know I had the previous one, and not the one date 04/20.  It was a problem for me – so make sure you have the right PR6024T!)

     

    Sue

     

    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

    image001.png@01D61318.74C26C90

    The information in this email and any attachments is considered confidential. This information may be subject to legal, professional, or other privilege. It must not be disclosed to any person without our authority. If you are not the intended recipient you are not authorized to and must not disclose, copy, distribute, or retain this message or any part of it. Please return this message to the sender immediately and delete any and all copies from your system.

     

     



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

    Looks like there is an update to PR6024T as of 04/20/2020 to resolve the Employer Expense subtotal so that it now ties to the detail (ie subtotals).  Also, I am being told there is a tax table update as of 04/30/2020 that resolves the mixing of covid and non covid earnings.  I have not verified either personally.  The source was Sage support, so this is more than a rumor.

    ------------------------------
    Larry Bradford
    Accounting Technology LLC Consultant and Owner
    Accounting Technology, LLC
    Fairfax VA
    703-913-3500
    ------------------------------


  • 59.  RE: Payroll and COVID-19

    Posted 05-07-2020 14:44
    On another note GTL checkboxes marked in Federal Tax Maintenance will cause earnings to be counted twice and social security will stop withholding at 60+K if marked in certain cases.  That will be released as a fix in 2.20.2.

    ------------------------------
    Larry Bradford
    Accounting Technology LLC Consultant and Owner
    Accounting Technology, LLC
    Fairfax VA
    703-913-3500
    ------------------------------



  • 60.  RE: Payroll and COVID-19

    Posted 05-07-2020 18:28
    To all members posting on this thread, input requested:

    I'm in the planning phase for our quarterly Sage Roundtable Webinar. 

    1. What open issues on Payroll need to be addressed at that roundtable?  Please remember, they can't solve what the government hasn't published. 

    2. I'd like to share this thread, all names, personal identification, removed.  Are you okay with that?

    Thank you for your input. 
    ​​​​​​​

    ------------------------------
    Moira Goggin
    Executive Director
    90 Minds, Inc.
    ------------------------------



  • 61.  RE: Payroll and COVID-19

    Posted 05-10-2020 12:36
    I'm fine with sharing my posts.

    ------------------------------
    [Michele] [Herzog] [CPA,CITP, CGMA]
    [Overland Park] [KS]
    [816-520-1365]
    ------------------------------



  • 62.  RE: Payroll and COVID-19

    Posted 05-11-2020 10:19
    Yes, ma'am, totally fine with that!

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