ACS 22.214.171.124 includes the following enhancements and corrections.
We've updated Form 941 to meet the latest requirements from the Internal Revenue Service (IRS).
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.
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.
In View/Edit Individual, we've added a new Member ID field. This field is on the Profile tab, under Personal Information.
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.
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.
We'd updated state taxes for Idaho and New York.
We corrected these issues that some clients experienced: