MA PFML Diagnostic 43428

[JimS_1]

In inputting a 1099-G for Massachusetts PFML, I have put the paid out amount in "Unemployment Total Received (1)" and put the state withholding in the "State" section.  I also selected the box in the "State" section to "Report as taxable PFML" to ensure that the amount reports on MA Schedule X.

But I am getting a diagnostic that says "The Massachusetts Unemployment Withholding amount cannot exceed the Massachusetts Unemployment Compensation amount int he Form 1099-G input section.  (ref. #43428)".  The withholding is MUCH less than the earnings.

If I uncheck the "Report as taxable PFML" the diagnostic goes away, but I need to keep that box checked to get Schedule X to report correctly.

I think this is a bug in the system and will try to file and ignore the diagnostic (and maybe call Lacerte if I have time) but want to see if others are seeing this same issue.

[Derek V]

Same issue.  Replying to get updates.

[JimS_1]

Glad I'm not alone - As they say, misery loves company....

I spent about an hour on the phone with Lacerte talking with two different folks (it was escalated after talking to first one), and the second individual agreed something was wrong and he gave me a case number but couldn't tell me how long it would take to resolve ("the development group is very busy" I was told).  Lacerte won't allow us to file with this diagnostic, unfortunately.

What I determined is that when you check the box for "Report as taxable PFML", it is changing the earnings from "Unemployment Compensation" to "PFML Compensation".  However, it's not changing the "State income tax witholdings" to "PFML withholdings".  So Lacerte thinks you have entered a 1099-G with Zero Unemployment Comp and an amount for Unemployment Withholdings, so it's throwing off the error.  In any other situation it makes sense (can't have nothing in box 1 compensation and an amount withheld for taxes).   

Short answer: they need to fix the back-end so we can file!  Hope they do it quick.

[JimS_1]

A quick update:  I'm thinking of using this as the solution to bypass the diagnostic.

How to disable the e-file diagnostic error checking in Lacerte (intuit.com)

Anyone out there ever use this bypass feature before?  Makes me nervous, but if Lacerte doesn't come up with a fix, I think this is our only option.

[sjrcpa]

I've used the disable efile error checking before.

Not in this circumstance since I don't have it.

It won't hurt anything to try, but I suspect the withholding larger than the income won't fly by ITS.