2020 Payroll Tax Update
AccountMate’s Coronavirus Tax Relief Enhancement
The government is offering tax help for taxpayers, businesses, tax-exempt organizations, and others – including health plans – affected by coronavirus (COVID-19). The Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief and Economic Security (CARES) Act provide a variety of tax credits and grants to employers in response to the COVID-19 pandemic.
IMPORTANT! Consult your Tax Accountant on the applicability and implementation of the Coronavirus Tax Relief programs to your specific business.
Based on the FFCRA and CARES Act provisions, AccountMate will provide the following features to record and track COVID-19 related earnings and tax credit claims through the Coronavirus Tax Relief Enhancement package:
- An option to assign FFCRA Type to applicable earning code to track paid leave wages related to COVID-19
- A new report called Federal Tax Credits Report that provides information on applicable paid wages, health plan, employee retention, and other credit
- A new function called Federal Tax Credits Claim that allows users to record claimed credits under FFCRA, employee retention under CARES Act, and other tax credits
- A Recalculate Employer FICA utility that allows users to recalculate employer FICA for checks issued beginning April 1, 2020. Based on FFCRA, the eligible employer is not subject to the employer portion of Social Security tax (FICA) imposed on qualified paid leave wages.
- A comprehensive User Guide that provides step-by-step instruction on how to install the enhancement package and the recommended setup and implementation.
- You only need to install the enhancement package if you need to track FFCRA-related paid leave and earnings and CARES Act-related Employee Retention Credit.
- The enhancement package is version/build-specific.
- The enhancement package must be installed together with the PR Tax Subscription Program (Version # 2020.07 or later).
- The tax update includes table structure changes and Remote Views update to PREARN and PRTERN_DESC. This means that if you have modifications or patches affecting these files, do not install the PR Tax Update without contacting Rose Dasig.
- You can install the PR Tax Subscription program without installing the enhancement package if you do not need the FFCRA and CARES-Act-related features. Installing the PR Tax Subscription program using the Check for Payroll Subscription Updates from the Utilities menu (without installing the enhancement package) will not cause any issues unless you have modification or patches that affect the aforementioned table structure changes and remote views update.