Is anyone else questioning whether or not the Product Update in regards to the tax credits is accurate? The numerous documentation I have read indicates that employers can continue the tax credits if continuing with the FFCRA COVID earnings. This would mean that the Employer portion of SS is not paid. I believe this contradicts what the Q1 Product Update has Sage users doing. 

Is anyone else questioning whether or not the Product Update in regards to the tax credits is accurate? The numerous documentation I have read indicates that employers can continue the tax credits if continuing with the FFCRA COVID earnings. This would mean that the Employer portion of SS is not paid. I believe this contradicts what the Q1 Product Update has Sage users doing. 

Yes, I agree.  

Is Sage going to provide a definitive response as to the basis for their instructions with the Q1 update to change the employer portion of SS tax?

I agree that the employer taxes on SS should not be paid on any COVID earnings.  Here is the text in the FFCRA and it specifically mentions that the COVID wages are not counted as taxable for the employer portion of SS or Medicare. 

**Note: Section 3111(a) wages are SS wages.  Section 3111(b) wages are Medicare wages.

HR 6201 Families First Coronavirus Response Act

"SEC. 7005. SPECIAL RULE RELATED TO TAX ON EMPLOYERS.

(a) IN GENERAL.—Any wages required to be paid by reason of the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act shall not be considered wages for purposes of section 3111(a) of the Internal Revenue Code of 1986 or compensation for purposes of section 3221(a) of such Code.

(b) ALLOWANCE OF CREDIT FOR HOSPITAL INSURANCE TAXES.— (1) IN GENERAL.—The credit allowed by section 7001 and the credit allowed by section 7003 shall each be increased by the amount of the tax imposed by section 3111(b) of the Internal Revenue Code of 1986 on qualified sick leave wages, or qualified family leave wages, for which credit is allowed under such section 7001 or 7003 (respectively)."  

In the ARPA text, it also specifically increases the credit to both COVID SS and Medicare wages.

HR 1319 American Rescue Plan Act

‘‘SEC. 3133. SPECIAL RULE RELATED TO TAX ON EMPLOYERS. ‘‘(a) IN GENERAL.—The credit allowed by section 3131 and the credit allowed by section 3132 shall each be increased by the amount of the taxes imposed by subsections (a) and (b) of section 3111 and section 3221(a) on qualified sick leave wages, or qualified family leave wages, for which credit is allowed under such section 3131 or 3132 (respectively).

Based on the American Rescue Plan Act, qualified paid sick leave and family leave wages are now subject to the employer share of Social Security Tax effective starting April 1^st, 2021. Employers will receive a tax credit for the Social Security Tax but we are still waiting IRS for further instruction. Once we have more information from IRS, we will make the change in Payroll and Aatrix 941 form accordingly.

I have setup the CVID Social Security local tax codes per the Q1 guidelines and noticed that the EE and ER portions are not being included in the weekly Fed 941 deposits.  I know we do not need to pay the ER portion, but aren't we still required to remit the EE portion of the CVIDSS?  Is there a form we can pay this on?

Did you assign CVIDSS into the Emergency Paid Sick Leave Earnings? You also need to map this earning code to Report As "Form 941-Emergency Paid Sick Leave".