At the end of this post is a summary of Q&A posted from the June 23rd and 29th webinars - What's New in Sage HRMS Q2 2020 product update. Thank you to everyone that attended. In another week or two we should have the June 29th recording available on the Learning Series registration page.
Before we get to the Q&A, I would like to clarify CVIDMD and USMED tax codes as there were several questions relating to this topic. On the Form 941 for Q2 there was no separation of the Medicare wages in relation to FFCRA and CARES Act. Since we are not required to do separate reporting, you do not have to set up the local tax code CVIDMD. If you have not paid out any of these wages, it is recommended to use USMED and not set up a local tax code CVIDMD. Below are some scenarios and our recommendations if CVIDMD was used.
Scenario 1 - Employees will have Medicare wages in excess of $200,000 during 2020
The local tax code CVIDMD does not automatically calculate the tiered Medicare tax of .9% of Medicare wages in excess of $200,000. This requires the timecard to manually be adjusted. To have the tiered wages calculate automatically:
- Add USMED to the applicable earnings (optional: you can remove CVIDMD)
- Create a transaction history for the employees that were taxed using CVIDMD to move amounts from CVIDMD to USMED
- Inactivate CVIDMD
Scenario 2 - No employees will receive Medicare wages in excess of $200,000 during 2020
You can continue to use CVIDMD local tax on the FFCRA and CARES Act earnings for the remainder of 2020. At the end of the year, inactivate CVIDMD in set up of the local tax code.
For any questions on the Q2 2020 product update, please reach out to Sage HRMS support.
Below is a list of Questions and Answers from the June webinars - What’s New in Sage HRMS Q2 2020 Update
June 23, 2020 Questions and Answers
I don't have a speaker on my computer. What is the phone in number?
Sorry, there is no dial in telephone number. The audio portion of this webinar is delivered through your computer speakers.
Why are they (CVIDSF – COVID-19 Social Security for Family Leave Wages, CVIDSS – COVID-19 Social Security for Emergency Sick Leave Wages Only) categorized as local taxes?
In Sage HRMS, any tax codes that are not predefined in the software can be added as Local/Other Tax Codes. You cannot create your own Federal/State Tax Codes. To create your own tax code, go to Setup > (Codes) Payroll > Local/Other Tax Codes.
Is this set up (COVID-19 earnings and taxes) required if these plans are not applicable to my organization? Will my 941 be wrong if I don't do these code changes?
If your employer is not subject to COVID-19 legislation you do not need to set up these codes. Not every employer may need to set up all of these codes, only what is applicable. The setup instructions are to be used as a guideline. Your individual codes may be set up differently. For example, you may decide to set up the earnings as hourly instead of flat amount.
If you are not required to track or report information related to COVID-19, the Form 941 would not populate with the COVID-19 lines.
Since we can no longer call into support will annual support fees be lowered?
No. The method in how you contact support has changed. You can still speak with support. The chat representative will schedule a time when a support representative will give you a call.
We do not file our 941 quarterly forms through Aatrix. I print the draft forms in the system but then actually type them and mail them. Do we have to make these adjustments to taxes in our system? Will this affect the W2 forms in any way??
The setup of earnings and taxes is a guideline to help you track and report information related to FFCRA. You would set up the codes that are applicable to your employer.
You can continue to file Form 941 outside of our software and Aatrix. We have not heard any announcements yet for any changes to the Form W-2.
If CVIDMD was used from April to June on the EPSL wages will USMED go retroactive on those wages?
No.
I used CVIDSS on emergency sick leave and also on emergency family leave. Will this create a problem?
The Form 941 5a breaks down social security (i) Qualified sick leave wages and (ii) Qualified family leave wages. If you leave CVIDSS to calculate on both leave earnings, you will need to manually edit the Form 941 to separate these wages and liability amounts. Our recommendation is to modify your existing code CVIDSS (as per knowledgebase article 104155 attachment “FFCRA and Cares act setup for Sage HRMS 06 18 2020.docx”) for Emergency Sick leave wages and modify the Calc base tab to only include earnings and deduction codes that relate to sick leave (remove the earning and deduction codes that relate to the Emergency family leave).
Create a new local tax code CVIDSF for Social security for emergency family leave wages. See Knowledgebase 104155 attachment for more information. At this time it is unknown if there will be any changes to the Form W-2 related to COVID-19 emergency paid leave.
Where can I locate the instructions for the set up of the Health Benefits and Deductions?
Go to the Sage Knowledgebase and locate article 104155. In the attachment section open “FFCRA and Cares act setup for Sage HRMS 06 18 2020.docx”. This document references the setup of Health Expense for Family Leave that was mentioned in the webinar.
I don't think we are getting the in product messaging? Is there a way I can tell if they are being sent?
The In-Product Message appears when you sign into Sage HRMS and then only once. To see a list of prior in-product messages (IPM), go to the home page in Sage HRMS. They will appear here for 90 days and then disappear. If you do not see any in-product messages on the Home Page, in Sage HRMS go to the Settings icon > User Preferences > General Preferences tab. Make sure that you have not opted out of the following:
- I want to opt out of the Product Enhancement Program
- I want to opt out of the Product Survey Program
How can we tell who has access to use the Sage HRMS online? We have users that process payroll but I don't know if they are setup to access this service.
If you are referring to accessing Sage HRMS support or chat, that can be accessed from with Sage HRMS on the home page or from the help menu or from the https://www.sagecity.com/global-resources. If you contact Sage HRMS Support, they may be able to provide you with a list of people who are on your account to contact Sage.
Do I need to make the changes to taxes and deductions before uploading the Q2 upload update?
No, changes can be made after the Q2 2020 product update is installed. Please remember that the Form 941 has not been finalized yet.
What if you did not know about the updates and you set it up as it was originally sent out. Do I need to change it now? What happens to this quarter close?
Several of the changes in setup were announced with the Q2 2020 product update. You can make the changes to tax code setup now or after the Q2 2020 product update is installed. Please note that the new 941 reporting fields are only available after the Q2 update is installed.
When the changes in setup (if applicable to you as an employer) are completed as per article 104155 attachment “FFCRA and Cares act setup for Sage HRMS 06 18 2020.docx” you may still need to create Transaction History records to make adjustments.
Can you make those changes in an old timecard? and it will correct it?
Yes, you can make adjustments for the employee’s portion of earnings, deductions and taxes in the timecard as an alternative to using Transaction History. The advantage of a timecard is the entries will flow through to the General Ledger. Transaction History does not affect the General Ledger. There are advantages to using Timecard and Transaction History. In Transaction History you can manipulate the employer portion and wages (ceiling wages, no ceiling wages, etc.).
Do I have to do adjustments for every person I have processed paid leave for thus far?
Adjustments may not be required for every person, it depends on your scenario.
Do the earning and deductions codes have to be set up to close the quarter if you haven't had to pay any earnings for the Emergency Family or Sick Leave.
No. You would only set up the codes that are applicable to your employer.
Is it necessary to create the tax codes if we received a PPP loan? Is it necessary to create these codes if our company received a PPP loan and will not be requesting a wage/tax break?
I recommend checking with a tax specialist. Please see Sage Knowledgebase article 104390 for the suggested payroll reports to run to get information to assist in determining your payroll costs for the Paycheck Protection Plan.
Will I have any issues in running the 941 if these new codes are not created?
You would create these new earnings, deductions and local tax codes if they apply to your employer. If they do not apply, then you would not create them. If you are tracking the amounts manually or outside of HRMS, the lines on the Form 941 that relate to FFCRA and the CARES Act are available to edit. It is recommended if these codes apply to your employer and you need to report on these items, they should be set up in Sage HRMS.
Does the subscription to Sage ESS include the ability to post W2s?
No.
We cannot print checks now that we did the Q2 update.
Sage Knowledgebase article 105549 has been created to track issues related to the Q2 2020 product update. Article 105547 has been created to address the check printing issue. Please contact Sage HRMS Support for any further questions or updates. Additional items that have been reported are:
- client fails to update on HRMS user machines (article 105439)
- all HRMS payroll reports fail with error ‘C000005’ or report UI closes/terminates (article 105501)
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June 29, 2020 Questions and Answers
Does the change in contacting Support change the process for scheduling appointments with Gold Level service agreements?
No.
How much of a refund on our support contract are we going to get since telephone support is no longer available?
There is no refund, you can still speak with Support. What has changed is how you contact Support. The chat person can schedule a time for Support to call you. If you have Gold Support you also have the option to schedule an on demand appointment.
CVIDMD - do we need it or not? If we used it between April-June - do we need to adjust it any if employee makes less than 100K?
If you have not set up CVIDMD (Medicare) local tax, you do not need to do so. The IRS does not require separate Medicare reporting (for FFCRA or CARES Act) on the Form 941. If employees are not expected to have the 0.9% tiered Medicare tax this year, you do not have to use transaction history to move the amounts from CVIDMD to USMED. CVIDMD will update the Form 941 correctly.
If you wish to continue using CVIDMD, you can. Please note that you will need to override the employee Medicare for the tiered wages over 200,000 on the timecard. As an alternative, you can use transaction history to move the amounts from CVIDMD to USMED, no longer use CVIDMD and the USMED will calculate the tiered amount automatically when added to the earning codes.
Have the problems with the Q2 update been resolved?
Not at this time (as of June 29). Please reach out to Sage HRMS Support for the latest update.
Update as of July 1, 2020 – Post on Sage City:
www.sagecity.com/.../sage-hrms-q2-2020-product-update-known-issues
Can these tax codes be set up in the Enterprise level and push down to companies that need it?
The local tax codes are set up at the employer level in Sage HRMS Payroll.
Processing a retention credit - is this info in the kb article 104390?
Article 104390 is the Reporting in Sage HRMS for the CARES Act (H.R. 748) Paycheck Protection Plan. Article 104617 is Reporting in Sage HRMS for the CARES act (H.R. 748) Employee Retention Credit. This will provide a list of suggested reports to obtain payroll costs. Also see article ID 104155 – attachment: FFCRA and CARES Act Setup for Sage HRMS 06 18 2020.docx for the setup.
Do we have to set up these tax codes? Can it be calculated manually? We have not set up anything yet. We have not processed a retention credit either. Would we just use form 7200 then?
It is recommended to set up the codes if they are applicable to your employer and you will be using these codes. The setup instructions are to be used as a guide only. Please see your tax advisor for any tax questions and when to use the forms.
