6.2% Federal Payment delay

[ad]

Does IOP or QBPayroll have a solution for how to only remit part of the tax due for semi-weekly, monthly and Quarterly tax payments?  How to we remit part but not all of the federal tax due?

[BobKamman]

You mean, some people out there still have employees?

As I read the law, it applies only to wages paid after March 13.  I think you have to take 6.2% of those, and subtract it from what you deposit or pay directly.  IRS will have to sort it out later.   

[Just-Lisa-Now-]

Form 7200 along with the second qtr reports will include the wages from March 13-31

[ad]

The Form 7200 only addresses the credits - but not the deferral of SS tax.  I have weekly and monthly payers.  Intuit has to give us an option to pay part of the tax due or else we are all going to pay manually and still pay for software that is essentially useless.  [for those clients that still have payroll...point taken!]

[BobKamman]

Intuit doesn't have to give you anything.  The fine print has a force majeure clause.  Well, I don't know that for sure, but I bet it's there and it's a useful vocabulary lesson for today.  

[ad]

That was sort of unnecessary...

[qbteachmt]

I can think of two ways to do this in QB. It will depend on the reporting and forms needed (provided?).

First, the easiest is to Change the payment transaction when you initiate Pay Liabilities. QB payroll, in the desktop, allows you to Preview the payroll transaction.

On the Expenses tab, enter a liability account and use a negative here for the amount you want to show is Held Back. Later, you pay that as a regular liability, not through Payroll. This will not change the 941/944, though. The form will show as if you paid in full.

Or;

Preview the liability check, where you can Zero Out or reduce any payroll item to leave that amount as owed and accrued, which will be the Employer SS item. For the Paydate (which is the liability date) range, then, you can let that specific Employer tax item ride by changing it to Zero or reducing it. You can use this for any delayed period.

For the following quarters/periods, you simply set the liability payment date as usual as the starting period date, and that means you again skipped the unpaid amount.

For the final quarter in 2021, you would select all the way back to the first Delayed paydate for Period, such as 3/13/2020-12/31/2021, and using a Payroll Quarterly report, compute the 50% from that skipped quarter, change the amount on the payment to not include the 50% you don't intend to pay. Then, in 2022, all things returning to typical, you won't do anything until 4th quarter, where you will again select for payroll liabilities the timeframe such as 3/13/2020-12/31/2022 for FICA will get the remaining Employer SS balance from March 2020.

By the way, you are in the wrong place on the internet. This is a peer user community for professional income tax preparers using Intuit's Tax Preparation programs. You are asking about QuickBooks and Intuit Payroll.

The online community for those tools is found at this link:

https://quickbooks.intuit.com/learn-support/us-quickbooks-community/misc/03/community-us

[TaxGuyBill]

Where are you guys getting the 13th from?

[Just-Lisa-Now-]

I saw it in the instructions for the Form 7200

[qbteachmt]

Bloomberg has this: "An employer that chooses to delay payment of the employer portion of Social Security tax that otherwise would be due for the period from March 27 to Dec. 31, 2020, would need to deposit half of that delayed amount by Dec. 31, 2021, and the other half by Dec. 31, 2022, for that delayed payment of the employer portion of Social Security tax to be considered timely. "

And I found this:

"Specifically, all employer social security taxes otherwise required to be deposited between the date of enactment and December 31, 2020, are not required to be deposited on the normal deposit schedule. Instead, half of such taxes would be required to be deposited by December 31, 2021. The remaining deferred social security taxes would be required to be deposited by December 31, 2022.

The IRS is expected to revise Form 941, Employer’s Quarterly Federal Tax Return, to track the employer’s decision to defer tax deposits.  Employers must be mindful that wage payments late in 2020 might trigger a deposit requirement based on the employer’s usual deposit schedule, because the deferral is not triggered by the liability date (e.g., a payroll date on December 31) but instead by the deposit deadline (e.g., January 2, 2021).  In other words, the deadline for depositing the employer share of social security tax for wage payments made in late December 2020 is not deferred if the deposit deadline occurs in early 2021."

As usual, a developing story.