Released July 20, 2021.
ACS 126.96.36.199 includes the following enhancements and corrections.
Updated Form 941
We've updated Form 941 to meet the latest requirements from the Internal Revenue Service (IRS).
COVID-19 Sick and Expanded Family Leave
We've updated how payroll checks that include COVID-19 sick and expanded family leave are taxed.
Form 941, the 941 Worksheet, and the COVID-19 Sick and Family Leave Report all reflect these changes.
The Families First Coronavirus Response Act (FFCRA) created sick and expanded family leave. At the time, the money was not taxed by employer social security. Employers received a tax credit for employer Medicare amount and the amount of the wages on Form 941. For employers of a certain size, participation was mandatory.
In December 2020, the Consolidated Appropriations Act (CAA) extended the FFCRA's sick and expanded family leave until March 2021. This act made participation optional and did not tax employer social security.
In March 2021, the American Rescue Plan Act (ARPA) extended these COVID-19 related tax credits until September. However, sick and expanded family leave are now taxed by employer social security.
What this means for you
Your tax credit amount is the same, and based on the federal act effective on the check's date (CAA or ARPA), Payroll determines how to tax the check.
Checks issued prior to March 2021 are not taxable for employer social security. On Form 941, employers receive a tax credit for the Medicare amount and wages.
Checks issued after March 2021 are taxable for employer social security. On Form 941, employers receive a tax credit for the Social Security amount, Medicare amount, and wages.
If any employees took COVID-19 related sick or expanded family leave during this quarter, be sure you did not underpay the monthly or semi-weekly deposits. Otherwise, you may be subject to IRS penalties.
Member ID Profile Field
In View/Edit Individual, we've added a new Member ID field. This field is on the Profile tab, under Personal Information.
Special Fields in People Reports and Exports
We've added several new fields to Special Fields inside People Reports, Attendance Reports, and the Customized People Export. You can now include Spouse - Preferred Phone, Spouse - Preferred Email, Parent's Phone, and Parent's Email in reports.
Employee Tax Deferral Changes
If you opted to defer employee Social Security taxes, the IRS has extended the repayment period.
Now, you have until December 31, 2021 to collect the repayment from your employees. Employers must pay interest and penalties on amounts not collected by that date.
Updated State Taxes
We'd updated state taxes for Idaho and New York.
We corrected these issues that some clients experienced:
- Some CASS It and Max It clients received notices from their local Post Offices indicating that the mailer scorecard had too many mailpieces with incorrect barcodes.
- In Advanced Exports, Family Salutation did not use the "Retain" name when exporting for a single Family (one person family).
- When filtering for an unpaid invoice, "DBISAM Engine Error #11949 SQL parsing error - Expected end of statement but instead found where in SELECT SQL statement at line 12, column 1" displayed.
- When trying to print the Analysis of Revenues and Expenses report for 1995 and 1996, the years did not display in the drop-down list.