In order to have access to the worksheets described in this article and for the emergency pay wages to populate onto the 941 Form, you must do the following:

1. Install DocLink: Sage 100 Payroll 2.20.2
2. In Role Maintenance, select applicable role then on the Tasks tab, under Payroll, Reports/Forms, select Emergency Leave Worksheet and Employee Retention Credit Worksheet
3. Install/process the Aatrix forms update
   • In June, 2020, the IRS released an updated 941 Form for 2020. The new 941 Form has been updated by Aatrix. For information on how to update your federal and state tax forms see DocLink: How do I update tax forms in eFiling & Reporting in Sage 100? After you have updated your tax forms, the 2020 941/Schedule B form will be available for you to select.

After you have installed Sage 100 Payroll 2.20.2 and installed the Federal and State Tax Reporting (Aatrix) update the following will be available:

1. Your Qualified Sick Leave Wages and Qualified Family Leave wages will automatically populate in the 941 Form, if you paid Sick or Family Leave wages to your employees in the applicable quarter and you set up earning codes to use any of the new emergency pay tax rules described in DocLink: How do I set up to pay employees Emergency Paid Sick Leave and Emergency Family Medical Leave associated with the HR_6201 - Families First Coronavirus Response Act (FFCRA) in Sage 100?
   • The employee social security wages for any Earning Codes setup to use tax rule -800121 (Emergency Paid Sick Leave - Self) and tax rule -800125 (Emergency Paid Sick Leave - Others) will automatically populate into 941 form, Line 5a(i), Column 1 (Qualified sick leave wages)
   • The employee social security wages for any Earning Codes setup to use tax rule -800123 (Emergency Paid Family and Medical Leave) will automatically populate into 941 form, Line 5a(ii), Column 1 (Qualified family leave wages)
   • The employee Medicare wages for any of the 3 emergency pay tax rules listed above will be combined with your regular Medicare wages and automatically populated into 941 form, Line 5c, Column 1 (Taxable Medicare wages & tips)
2. From the Payroll, Reports menu, select the Emergency Leave Worksheet. (This worksheet can be used to assist you in determining the amounts you can enter in 941 Worksheet 1, lines 2a, 2a(i), 2b, 2e, 2e(i) and 2(f).)
   1. Select your applicable employee and employer qualified health plan expense deduction codes. For details about this worksheet, see Sage 100 help.
      • Note: This worksheet automatically includes any earnings code that use any of the emergency pay tax rules.

Note about Allocated Health Plan Expenses

• You will need to manually enter the applicable amounts on the Form 941 Worksheet on Lines 2b and 2f. For details about this worksheet, see Sage 100 help - Qualified Emergency Leave Worksheet.

Notes about Qualified Sick and Family Leave wages:

• If you have installed the required updates, and your qualified sick and family leave wages do not populate into the 941 form on lines 5a(i), 5a(ii), verify the following:
  • the tax rules used for your Earning Codes are applicable for emergency paid wages, and
  • the check dates are within the applicable quarter.
• If you paid Sick or Family Leave wages to your employees but did not set up earning codes to use any of the new emergency pay tax rules, you can manually enter your Qualified Sick and Family Leave wages directly into the Form 941 Worksheet 1.
  • To manually enter your amounts of sick and family leave wages do the following:
    1. In Federal and State Tax Reporting, select the 2020 941 form
    2. Once the form has opened, on page 1 of the 941 form, select the check box for "If you don't have any amounts entered on line 5a(i) or 5a(ii) but you did pay Sick or Family Leave wages, check the box to load the Worksheet 1 Form." (Note: this selection field is a custom field designed by Aatrix to allow manual entry into the Worksheet 1 Form. It is not part of the actual 941 form and will not print on your final form.
    3. Click OK, at the prompt "Complete Worksheet 1. Credit for Sick and Family Leave Wages and the Employee Retention Credit"
    4. Read instructions, manually enter and verify your amounts on applicable lines of Worksheet 1, the amounts you enter will then populate appropriate lines on the 941 form.

Employee Retention Credit

1. On the Payroll, Reports menu, select the Employee Retention Credit Worksheet (Note: This worksheet can be used to assist you in determining the amounts to enter on 941 Worksheet 1 Form, lines 3a through 3d)
2. Read the disclaimer and click OK
3. Select your applicable qualified earning codes that you want to include in this credit
4. Select your applicable qualified employee and employer qualified health plan expense deduction codes that you want to include in calculating your Employee Retention Credit
5. For details about this worksheet, see Sage 100 help - Employee Retention Credit.

For details on the Employee Retention Credit, see knowledgebase article DocLink: Reporting for the CARES Act (H.R. 748) - Employee Retention Credit

For information on the Paycheck Protection Plan with Employee Retention Credit see https://www.irs.gov/pub/irs-pdf/i941.pdf, section 11c. Nonrefundable Portion of Employee Retention Credit

An employer may not claim the employee retention credit if the employer receives a Small Business Interruption Loan under the Paycheck Protection Program (PPP) that is authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act ("Paycheck Protection Loan"). An employer that receives a Paycheck Protection Loan shouldn’t claim an employee retention credit. An employer that applied for a Paycheck Protection Loan, received payment, and repaid the loan by May 18, 2020, will be treated as though the employer had not received a covered loan under the PPP for purposes of the employee retention credit.

Large Fractions of Cents

The tax liability amounts listed on the 941 Form line 16 or Schedule B are not automatically adjusted to account for the special credits as part of Coronavirus government assistance programs in 2020 for quarters 2 through 4. While several assistance programs have been included in the updated 941 form to reduce taxable wages, they do not reduce the tax liability schedule in the 941 form automatically when amounts are entered in the corresponding fields on the 941 and 941 Worksheet 1. The tax liability amounts on 941 line 16 or on the Schedule B, must be adjusted manually to account for the differences between your total payroll tax liability for the quarter, which will vary depending on the type of employer credit exercised in each quarter. For more information, review the 941 Form instructions, specifically the section "Adjusting tax liability for nonrefundable credits claimed on lines 11a,11b and 11c", link to the 941 Form instructions is included below.
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