Under IRS guidance, eligible employers who pay qualifying sick or childcare leave under the Families First Coronavirus Response Act (FFCRA) will be able to retain an amount of the payroll taxes equal to the amount of qualifying sick and childcare leave that they paid, rather than deposit them with the IRS.

The payroll taxes that are available for retention include withheld federal income taxes, the employee share of Social Security and Medicare taxes, and the employer share of Social Security and Medicare taxes with respect to all employees.

If there are not sufficient payroll taxes to cover the cost of qualified sick and childcare leave paid, employers will be able to file a request for an accelerated payment from the IRS using Form 7200. The IRS expects to process these requests in two weeks or less.

We have developed an FFCRA Calculator to help you determine the 941 payroll tax credit and/or advance from the IRS (Form 7200). This calculator will assist you in keeping your documentation organized by employee.

Access Calculator

 

Using QuickBooks to Pay FFCRA Leave?

[UPDATED: 5-1-20]

Until QuickBooks has the function working on the back-end, use these instructions as a workaround for paying FFCRA leave in QuickBooks.

Get Instructions (PDF)

 

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Debbie Denny
I joined Hawkins Ash CPAs in 2008. I am an Accounting Services Manager, Advanced Certified QuickBooks Desktop ProAdvisor and Certified QuickBooks Online ProAdvisor. I have been certified in QuickBooks for more than 20 years and specialize in software consulting and training, small business accounting and tax preparation. I also am experienced in Sage 50 software.

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