FWIW, this seems to be a good place to put this. 2nd qtr 941 doesn't fully work below 2.20.2 because they're all pre new rules around:
- Credit for Qualified Sick and Family Leave Wages;
- Employee Retention Credit; and
- Deferred Amount of the Employer Share of Social Security Tax.
KB 105461
My Qualified wages for the Employee Retention Credit and Sick and Family Leave credit are missing on the 941 form.
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- When will the 941 form be updated for the 2nd quarter of 2020?
- How do I enter amounts in the Form 941 Worksheet 1?
- How do I report the Employee Retention Credit and Qualified Sick and Family Leave Credit on the 941 Form the was updated for the 2nd Quarter of 2020 tax year?
- My Qualified wages for the Employee Retention Credit and Sick and Family Leave wages are missing on the 941 form.
- Worksheets are missing under Reports menu.
- Report is missing
- Large Fractions of Cents
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Support
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Sage Customer Support does not provide assistance for issues related to third party products or enhancements, hardware, report customizations, state or federal tax-related questions, or specific accounting questions. Please contact your Sage business partner, network administrator, or accountant for assistance. Please review this document for additional information on the scope of Sage Customer Support Services.
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The updated 941 Form (rev 4-2020) is to be used for the rest of 2020 (starting with the 2nd quarter filing). The new 941 form takes into account the changes made by the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act that added various types of payroll tax relief.
Specifically, the Form 941 for 2020 is now 3 pages and adds lines to account for:
- Credit for Qualified Sick and Family Leave Wages;
- Employee Retention Credit; and
- Deferred Amount of the Employer Share of Social Security Tax.
In order to have access to the worksheets described in this article and for the emergency pay wages to automatically populate into the 941 Form, you must do the following:
- Install Sage 100 Payroll 2.20.2
- In Role Maintenance, select applicable role then on the Tasks tab, under Payroll, Reports/Forms, select Emergency Leave Worksheet and Employee Retention Credit Worksheet
- Install/process the Aatrix forms update
- In June, 2020, the IRS released an updated 941 Form for 2020. The new 941 Form has been updated by Aatrix. For information on how to update your federal and state tax forms see How do I update tax forms in eFiling & Reporting in Sage 100? After you have updated your tax forms, the 2020 941/Schedule B form will be available for you to select.
After you have installed Sage 100 Payroll 2.20.2 and installed the Federal and State Tax Reporting (Aatrix) update the following will be available:
- Your Qualified Sick Leave Wages and Qualified Family Leave wages will automatically populate in the 941 Form, if you paid Sick or Family Leave wages to your employees in the applicable quarter and you set up earning codes to use any of the new emergency pay tax rules described in 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?
- The employee social security wages for any Earning Codes setup to use tax rule -800121 (Emergency Paid Sick Leave - Self) and tax rule -800125 (Emergency Paid Sick Leave - Others) will automatically populate into 941 form, Line 5a(i), Column 1 (Qualified sick leave wages)
- The employee social security wages for any Earning Codes setup to use tax rule -800123 (Emergency Paid Family and Medical Leave) will automatically populate into 941 form, Line 5a(ii), Column 1 (Qualified family leave wages)
- The employee Medicare wages for any of the 3 emergency pay tax rules listed above will be combined with your regular Medicare wages and automatically populated into 941 form, Line 5c, Column 1 (Taxable Medicare wages & tips)
- From the Payroll, Reports menu, select the Emergency Leave Worksheet. (This worksheet can be used to assist you in determining the amounts you can enter in 941 Worksheet 1, lines 2a, 2a(i), 2b, 2e, 2e(i) and 2(f).
- Select your applicable employee and employer qualified health plan expense deduction codes. For details about this worksheet, see Sage 100 help.
- Note: This worksheet automatically includes any earnings code that use any of the emergency pay tax rules.
Notes about Qualified Sick and Family Leave wages:
- If you have installed the required updates, and your qualified sick and family leave wages do not populate into the 941 form on lines 5a(i), 5a(ii), verify the following:
- the tax rules used for your Earning Codes are applicable for emergency paid wages, and
- the check dates are within the applicable quarter.
- If you paid Sick or Family Leave wages to your employees but did not set up earning codes to use any of the new emergency pay tax rules, you can manually enter your Qualified Sick and Family Leave wages directly into the Form 941 Worksheet 1.
- To manually enter your amounts of sick and family leave wages do the following:
- In Federal and State Tax Reporting, select the 2020 941 form
- Once the form has opened, on page 1 of the 941 form, select the check box for "If you don't have any amounts entered on line 5a(i) or 5a(ii) but you did pay Sock or Family Leave wages, check the box to load the Worksheet 1 Form." (Note: this selection field is a custom field designed by Aatrix to allow manual entry into the Worksheet 1 Form. It is not part of the actual 941 form and will not print on your final form.
- Click OK, at the prompt "Complete Worksheet 1. Credit for Sick and Family Leave Wages and the Employee Retention Credit"
- Read instructions, manually enter and verify your amounts on applicable lines of Worksheet 1, the amounts you enter will then populate appropriate lines on the 941 form.
Employee Retention Credit
- On the Payroll, Reports menu, select the Employee Retention Credit Worksheet (This worksheet can be used to assist you in determining the amounts to enter on 941 Worksheet 1 Form, lines 3a through 3d)
- Read the disclaimer and click OK
- Select your applicable qualified earning codes that you want to include in this credit
- Select your applicable qualified employee and employer qualified health plan expense deduction codes that you want to include in calculating your Employee Retention Credit
- For details about this worksheet, see Sage 100 help.
For details on the Employee Retention Credit, see knowledgebase article Reporting for the CARES Act (H.R. 748) - Employee Retention Credit
Large Fractions of Cents
The tax liability amounts listed on the 941 Form line 16 or Schedule B are not automatically adjusted to account for the special credits as part of Coronavirus government assistance programs in 2020 for quarters 2 through 4. While several assistance programs have been included in the updated 941 form to reduce taxable wages, they do not reduce the tax liability schedule in the 941 form automatically when amounts are entered in the corresponding fields on the 941 and 941 Worksheet 1. The tax liability amounts on 941 line 16 or on the Schedule B, must be adjusted manually to account for the differences between your total payroll tax liability for the quarter, which will vary depending on the type of employer credit exercised in each quarter. For more information, review the 941 Form instructions, specifically the section "Adjusting tax liability for nonrefundable credits claimed on lines 11a,11b and 11c", link to the instructions is included below.
How do I reconcile Payroll tax forms & reports?
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?
How to print the 941 & Schedule B forms in Sage 100
How to print the Quarterly Tax Report for federal, state or local taxes
For more information about the 941 changes please go to https://www.irs.gov/forms-pubs/about-form-941
Form 941 instructions for the updated Form 941 released in June, 2020 can be found https://www.irs.gov/pub/irs-pdf/i941.pdf. Updated Schedule B instructions can be found https://www.irs.gov/pub/irs-pdf/i941sb.pdf
For more information on these credits go to IRS website:
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Rhonda McNamara
Customer Success Manager
Stewart Technologies, Inc.
rsm@stewarttechnologies.com------------------------------
Original Message:
Sent: 07-07-2020 12:11
From: Thomas Rogers
Subject: SOP for reconciling the 2nd quarter 941 to other detailed Reports
After the reading the 941 instructions, I have concluded that the deposit liabilities on the Schedule B need to be reduced by the amount of the credit calculated on the worksheet. I just put a negative liability on the last day of the quarter and all was fine. Well until the IRS looks at it I suppose?
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Thomas Rogers (TomTarget)
Target System Technology, Inc.
Spokane Valley WA
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Original Message:
Sent: 07-02-2020 14:40
From: Jeff Schwenk
Subject: SOP for reconciling the 2nd quarter 941 to other detailed Reports
OK, so when is the 90M webinar scheduled with the experts at Sage to answer OUR questions about this process? If we can't figure it out, does Sage REALLY expect the users to?? Or are they wiping their hands with the disclaimer to talk to your CPA. We just build the stuff, don't know if it works or not!!!
Sign me up for the webinar. Next week would be a great time for it before the angry mob gathers outside the fortress!!!!
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Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
Original Message:
Sent: 07-02-2020 13:56
From: John Leonard
Subject: SOP for reconciling the 2nd quarter 941 to other detailed Reports
So it seems like on the 941 if you change the timeframe of required deposits to either monthly or for the schedule B to print it throws the refund amount into fractions of cents. Does anyone know what should be adjusted to get the refund amount to be correct? Thanks!
John P. Leonard
(504) 835-9639
(504) 835-7850 (F)
Original Message:
Sent: 7/2/2020 1:33:00 PM
From: Beth Bowers
Subject: RE: SOP for reconciling the 2nd quarter 941 to other detailed Reports
@John Leonard - I don't think so, but I'm not positive.
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Beth Bowers
Mom to Samson, Peanut, ChiChi, Canton, Cagney and Daisy (NO Oxford comma - shriek!)
Beth Bowers
269-445-1625
Original Message:
Sent: 07-02-2020 11:30
From: John Leonard
Subject: SOP for reconciling the 2nd quarter 941 to other detailed Reports
Beth, did they adjust the liability on the schedule B?
Original Message:
Sent: 7/2/2020 11:05:00 AM
From: Beth Bowers
Subject: RE: SOP for reconciling the 2nd quarter 941 to other detailed Reports
It's definitely a struggle. I didn't have the same issue, but had a client who paid EL wages but did not reduce their deposits when they were paid. She finally found the place she could make modifications on the new worksheet to get what she needed on the main 941.
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Beth Bowers
Mom to Samson, Peanut, ChiChi, Canton, Cagney and Daisy (NO Oxford comma - shriek!)
Beth Bowers
269-445-1625
Original Message:
Sent: 07-02-2020 10:17
From: Jeff Schwenk
Subject: SOP for reconciling the 2nd quarter 941 to other detailed Reports
More info on topic. Below was sent from client. Anyone else encountering client frustration and confusion?
I still need you to pose the question to your "Sage group" or whatever group you are part of if the 941 is working for other users that have the Emergency sick pay as I don't believe it is a Sage issue I believe it is an IRS issue as both Lori and I can't get the 941 to work out to what it needs to be and it has to do with deductions being taken from the Emergency Leave Wages which reduces the SS/Medicare taxable wages for the Emergency Leave so we are not getting the full credit of the "gross emergency leave" wages.
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Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444