Setting Up Payroll Item In QuickBooks For COVID-19
As organizations struggle with the new normal in the wake of the COVID-19 pandemic, many take advantage of various provisions for legislative relief. But what you may not consider is that these provisions will have a critical impact on your payroll processes.
Many of the relief provisions have elements which influence the payroll of your organization:
- The Families First Act needs paid time off for employees that are impacted by COVID-19.
- The Paycheck Protection Program (PPP) needs 75% of the loan funds used to cover payroll costs.
- The CARES Act includes a refundable payroll tax credit provision and the ability to defer payment of the employer’s share of payroll taxes.
Knowing how these provisions impact your payroll will be vital in ensuring accurate payroll records and proper documentation.
AccountsPro also gives step by step instruction to Setup COVID-19 Sick Leave In QuickBooks which also gives you clear idea about .
What Are Payroll Items In QuickBooks?
It is needed for any type of paycheck or employer-related amount. The payroll item contains an item for anything affecting the amount of a paycheck such as wages, expense reimbursement, taxes, benefit withholding amounts, etc, as well as any company expense related to payroll.
Different types of paid leave
Under FFCRA, there are three different types of paid leave. Employers can also get credit for any health insurance premiums they pay for impacted employees while they are on leave.
- National Paid Leave Employee: Your employee is sick and under quarantine with COVID-19.
- National Paid Leave Family: This leave is allowed for your employee when they are taking care of a family member who impacted with COVID-19.
- National Paid Leave FMLA: Your employee is taking leave under the Family Medical Leave Act (FMLA) to care for children under 18 whose school or child care is closed because of COVID-19.
- National Paid Leave – Health Credits: If you are contributing to an employee’s health insurance during the time they are being paid under the FFCRA provisions, you can track this amount and a credit will be applied to your federal tax liability.
If you just start doing payroll in QB , lets learn Setting Up Payroll in QuickBooks Desktop in easy steps .
FFCRA Payroll Item Setup QuickBooks
Things need to know related to COVID-19 Payroll Items
- Deferring payment of social security taxes is a benefit that has been made available to all employers regardless of the size of their operations.
- Employees can be paid sick leave wages up to 10 days at their regular wages (limited to a maximum of $511 per day) for their own use or two-thirds their wages (limited to a maximum of $200 per day) to care for others.
QB Payroll Item For Corona Pandemic
Know more about COVID payroll items
You can make sure with QuickBooks Desktop Payroll that your employees have the money they need and later you can comply with the Family First Coronavirus Response Act (FFCRA).
To set this up, you need to determine the employee’s benefit and hourly rate and from that you can easily set up a liability and expense account for the paid leave. Then, you can easily create tax and payroll items. It is also suggested you reach out to an accountant to get more help in identifying account and payroll item types for tax purposes.
Process Setup COVID Payroll Item QB
Once, you identified the accounts and employee’s type then you can create an hourly payroll item:
Step by step instructions to set up QuickBooks COVID Payroll Items:
- Initially, go to the Employees menu and select Manage Payroll Items
- Select and click on New Payroll item
- Now click on the Custom Set up and hit Next button
- After that choose the Payroll Item type such as Hourly wages and then hit Next
- Next, choose the item for overtime, regular, vacation or sick pay and then click Next button
- Type a name like COVID-19 hours and then hit Next button
- Now select the accurate Expense account that you currently set up or an existing one
- At last, hit the Finish option.
Help For COVID-19 Payroll Item QB Pro, Premier, Enterprise
So, this blog contains information related to QuickBooks COVID Payroll Items. For further inquiries, you can connect with AccountsPro toll-free number 📞 1-800-474-0179 for QuickBooks Paycheck Protection Program issues and problem. You can connect QuickBooks Support Toll Free Number or via dropping an email at AccountsPro along with your query details or do a live chat with professionals.