2020 W-2 Update: 2019 USERRA Make-Up Amounts in Box 12 Lookup

 

This Costpoint release adds the following codes to the lookup list in the Box 12 subtask of the Manage W-2s (PRMW2) screen:

 

Box 12 Code	Box 12 Description
AA 19	USERRA 2019 make up designated Roth contributions to a section 401(k) plan
BB 19	USERRA 2019 make up designated Roth contributions under a section 403(b) salary reduction agreement
D 19	USERRA 2019 make up elective deferrals to a section 401(k) cash or deferred arrangement
E 19	USERRA 2019 make up elective deferrals to a section 403(b) salary reduction agreement
EE 19	USERRA 2019 make up designated Roth contributions under a section 457(b) plan
F 19	USERRA 2019 make up elective deferrals to a section 408(k)(6) salary reduction agreement
G 19	USERRA 2019 make up elective deferrals and employer contributions (including nonelective deferrals) to a section 457(b) deferred comp plan
H 19	USERRA 2019 make up elective deferrals under a section 501(c)(18)(D) tax-exempt organization plan
S 19	USERRA 2019 make up employee salary reduction contributions under a section 408(p) SIMPLE plan
Y 19	USERRA 2019 make up deferrals under section 409A nonqualified deferred compensation plan

2021 Social Security Wage Limit Update

The 2021 Social Security Taxable Wage Base is $142,800. Costpoint now supports this new limit with an effective date of 01/01/2021.

Form 941 Worksheet 1 Updates

The Internal Revenue Service (IRS) released revised instructions for Form 941, which include changes to Step 3 of Worksheet 1 (Credit for Qualified Sick and Family Leave Wages and the Employee Retention Credit). Employers will need to use the new worksheet to complete their 2020 third quarter 941 reporting.

 

Worksheet 1. Credit for Qualified Sick and Family Leave Wages and the Employee Retention Credit (July 2020 Revision)

 

Costpoint Solution

To comply with the revised Form 941, this Costpoint release updates the numbering and text in the Employee Retention Credit section of the Federal 941 Data and Tax Credit Report generated on the Print Quarter Federal Payroll Tax Report screen. The following chart provides a mapping of the new IRS worksheet to Costpoint’s updated report.

IRS Form 941, Worksheet 1 - Step 3 (July 2020 Revision)	Costpoint's Federal 941 Data and Tax Credit Report
3a Qualified wages (excluding qualified health plan expenses) for the employee credit (Form 941, Part 3, line 21)	3a Qualified wages for the employee retention credit:
3b Qualified health plan expenses allocable to qualified wages for the employee retention credit (Form 941, Part 3, line 22)	3b Qualified health plan expenses allocable to qualified wages for the employee retention credit:
(The existing line 3c has been repurposed in the new IRS worksheet. See below. In order to continue supporting Q2 2020 reporting, we will show this as 3cq2 on the updated report.)	3cq2 Qualified wages paid March 13, 2020 through March 31, 2020 for the employee retention credit (Q2 report only); (Amount should be zero)
(The existing line 3d has been repurposed in the new IRS worksheet. See below. In order to continue supporting Q2 2020 reporting, we will show this as 3dq2 on the updated report.)	3dq2 Qualified health plan expenses allocable to qualified wages paid March 13, 2020 through March 31, 2020 (Q2 report only); (Amount should be zero)
3c Add lines 3a and 3b	3c Total qualified wages for employee retention credit (3a + 3b + 3cq2 + 3dq2):
3d Retention credit. Multiply line 3c by 50% (0.50)	3d Retention credit (3c x 50%):
3e Enter the amount of the employer share of social security tax from Step 1, line 1l	1l (from the ‘Credit for Sick and Family Leave Wages’ section of the report) Employer share of social security tax remaining:
3f Enter the amount of the nonrefundable portion of the credit for qualified sick and family leave wages from Step 2, line 2j	2j (from the ‘Credit for Sick and Family Leave Wages’ section of the report) Nonrefundable portion of credit for qualified sick and family leave wages (the smaller of 1l or 2i):
3g Subtract line 3f from line 3e	3g Subtract nonrefundable portion of credit for qualified sick and family leave wages from employer share of social security tax (1l - 2j):
3h Nonrefundable portion of employee retention credit. Enter the smaller of line 3d or line 3g. Enter this amount on Form 941, Part 1, line 11c	3h Nonrefundable portion of employee retention credit (the smaller of 3d or 3g):
3i Refundable portion of employee retention credit. Subtract line 3h from line 3d and enter this amount on Form 941, Part 1, line 13d	3i Refundable portion of employee retention credit (3d - 3h):

Reporting COVID-19 Sick Leave Wages and Family Leave Wages in W-2

Description

IRS Notice 2020-54 (Guidance on Reporting Qualified Sick Leave Wages and Qualified Family Leave Wages Paid Pursuant to the Families First Coronavirus Response Act)

Source: https://www.irs.gov/pub/irs-drop/n-20-54.pdf

Reporting Qualified Sick Leave Wages

In addition to including qualified sick leave wages in the amount of wages paid to the employee reported in Boxes 1, 3 (up to the social security wage base), and 5 of Form W-2, employers must report to the employee the following type and amount of the wages that were paid, with each amount separately reported either in Box 14 of Form W-2 or on a separate statement:

• the total amount of qualified sick leave wages paid to the quarantined employee under the EPSLA; in labeling this amount, the employer must use the following, or similar, language: “sick leave wages subject to the $511 per day limit.”

• the total amount of qualified sick leave wages paid to the employee caring for quarantined individuals and others under the EPSLA; in labeling this amount, the employer must use the following or similar language: “sick leave wages subject to the $200 per day limit.”

If a separate statement is provided and the employee receives a paper Form W-2, then the statement must be included with the Form W-2 provided to the employee, and if the employee receives an electronic Form W-2, then the statement shall be provided in the same manner and at the same time as the Form W-2.

Reporting Qualified Family Leave Wages

In addition to including qualified family leave wages in the amount of wages paid to the employee reported in Boxes 1, 3 (up to the social security wage base), and 5 of Form W-, employers must separately report to the employee the following type and amount of the wages that were paid in either in Box 14 of Form W-2 or on a separate statement:

• the total amount of qualified family leave wages paid to the employee under the EFMLEA; in labeling this amount, the employer must use the following, or similar, language: “emergency family leave wages.”

If a separate statement is provided and the employee receives a paper Form W-2, then the statement must be included with the Form W-2 sent to the employee, and if the employee receives an electronic Form W-2, then the statement shall be provided in the same manner and at the same time as the Form W-2.

Model Language for Employee Instructions

As part of the Instructions for Employee, under the instructions for Box 14, for the Forms W-2, or in a separate statement sent to the employee, the employer may provide additional information about qualified sick leave wages and qualified family leave wages and explain that these wages may limit the amount of the qualified sick leave equivalent or qualified family leave equivalent credits to which the employee may be entitled with 9 respect to any self-employment income. The following model language (modified as necessary) may be used:

“Included in Box 14, if applicable, are amounts paid to you as qualified sick leave wages or qualified family leave wages under the Families First Coronavirus Response Act. Specifically, up to three types of paid qualified sick leave wages or qualified family leave wages are reported in Box 14:

• Sick leave wages subject to the $511 per day limit because of care you required;

• Sick leave wages subject to the $200 per day limit because of care you provided to another; and

• Emergency family leave wages.

If you have self-employment income in addition to wages paid by your employer, and you intend to claim any qualified sick leave or qualified family leave equivalent credits, you must report the qualified sick leave or qualified family leave wages on Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, included with your income tax return and reduce (but not below zero) any qualified sick leave or qualified family leave equivalent credits by the amount of these qualified leave wages. If you have self employment income, you should refer to the instructions for your individual income tax return for more information.”

 

Costpoint Solution

Manage Employee Leave (LDMELV)

When you report the COVID-19 sick leave wages in Box 14 of Form W-2, the sick leave wages must be reported based on the daily limit that was applied:

• Sick leave wages subject to the $511 per day limit

• Sick leave wages subject to the $200 per day limit

To allow you to specify which daily limit was utilized, the Manage Employee Leave screen provides the following new drop-down list in the Paid Family Leave subtask. This will enable the Create W-2 Table application to appropriately allocate wages to the correct category.

Field	Description
Box 14 Description	From the drop-down list, select the Box 14 description for the daily limit amount to which the sick leave wages have been subjected. The Box 14 Description drop-down box will only be enabled and required if the City/State field value is NATIONAL PAID SICK LEAVE COVID19.

A new EMERGENCY FAMILY MEDICAL LEAVE COVID19 value was added in the City/State field for the FFCRA’s EFMLEA provision. This new value is different from the existing NATIONAL PAID SICK LEAVE COVID19 value, which is for the FFCRA’s EPSLA provision.

 

Create W-2 Table (PRPCW2)

The application now generates Box 14 records for any employees with the following types of COVID-19 leave wages:

• Sick leave wages subject to the $511 per day limit

• Sick leave wages subject to the $200 per day limit

• Emergency family leave wages

 

Manage W-2s (PRMW2)

A new subtask, titled COVID-19 Box 14, allows you to view and edit Box 14 information for the following types of COVID-19 leave wages:

• Sick leave wages subject to the $511 per day limit

• Sick leave wages subject to the $200 per day limit

• Emergency family leave wages

The subtask provides the following fields:

Field	Description
Sick leave wages paid to the quarantined Employee	Description: Enter a description for the total amount of sick leave wages subject to the $511 per day limit. This will be used as the Box 14 description of the total amount of qualified sick leave wages paid to the quarantined employee under the EPSLA. The default description in this field is Sick leave subject to $511/day limit. According to the IRS, in labeling this amount, the employer must use the following, or similar, language: "sick leave wages subject to the $511 per day limit." Amount: Enter the total amount of qualified sick leave wages paid to the quarantined employee under the EPSLA.
Sick leave wages paid to the Employee caring for others	Description: Enter a description for the total amount of sick leave wages subject to the $200 per day limit. This will be used as the Box 14 description of the total amount of qualified sick leave wages paid to the employee caring for others under the EPSLA. The default description in this field is Sick leave subject to $200/day limit. According to the IRS, in labeling this amount, the employer must use the following, or similar, language: "sick leave wages subject to the $200 per day limit." Amount: Enter the total amount of qualified sick leave wages paid to the employee caring for others under the EPSLA.
Family leave wages paid to the Employee	Description: Enter a description for the total amount of family leave wages paid to the employee under the EFMLEA. This will be used as the Box 14 description of the total amount of qualified family leave wages paid to the employee under the EFMLEA. The default description in this field is Emergency family leave wages. According to the IRS, in labeling this amount, the employer must use the following, or similar, language: "emergency family leave wages." Amount: Enter the total amount of qualified family leave wages paid to the employee under the EFMLEA.

 

Print W-2s (PRRW2)

If an employee has COVID-19 sick leave of family leave wages in 2020, the information will print in Box 14 on a separate W-2 for the employee.

The W-2 Box 14 COVID-19 sick and family leave wages was added to the report.

 

Print W-2 Summary Report (PRRW2R)

The application now prints Box 14 summary information for the following types of COVID-19 leave wages:

• Sick leave wages subject to the $511 per day limit

• Sick leave wages subject to the $200 per day limit

• Emergency family leave wages

 

W-2s (ESMELECW2)

The application now provides the ability to view and print Box 14 information for the following types of COVID-19 leave wages:

• Sick leave wages subject to the $511 per day limit

• Sick leave wages subject to the $200 per day limit

• Emergency family leave wages

In order to accommodate the Box 14 COVID-19 reporting, the existing Box 14 (Other) fields on the main screen have been replaced with a Box 14 Code table. The Box 14 Code table provides the following fields:

Field	Description
14 Code	This field displays the deduction code or local taxes assigned to lines 1-5.
14 Amount	This field displays the corresponding amount for the deduction code or local tax.

 

Export Payroll Taxes (PRPEXTAX)

The application process now includes the three types of COVID-19 leave wages in the W-2 File and the Export Payroll Taxes report, if applicable.

 

Print Data Dictionary Report (SYRDD)

The report now provides information for the new BOX14_DESC column in the EMPL_LV_ACCRL_PAID_FAM_LV table.

The report now provides information for the following new columns on the FED_W2_FILE table for the three types of leave wages:

• BOX14_CVD_SL1_CD

• BOX14_CVD_SL2_CD

• BOX14_CVD_FML_CD

• BOX14_CVD_SL1_AMT

• BOX14_CVD_SL2_AMT

• BOX14_CVD_FML_AMT

2021 SUTA Wage Base Updates

This Costpoint release adds tax table records effective 01/01/2021 for states where the unemployment-taxable wage base has been updated for tax year 2021.

Note: These updates require PATCH3805.

 

Arkansas

The SUTA limit for 2021 is $10,000.

 

New York

The SUTA limit for 2021 is $11,800.

 

Vermont

The SUTA limit for 2021 is $14,100.

Defect 1377525: In the Manage Timesheets (LDMTIME) application, the Comment icon on the timesheet line was not visible in Google Chrome version 86.0.4240.75.

Defect 1368170: When you opened the application and queried a part, the Borrow Payback Reservations for the part was incorrect.

Defect 1332346: An error 404 displayed when you launched the Costpoint Online Help from the Import Employee Data screen.

As a workaround, launch the online help file from other Costpoint screens and browse for the Import Employee Data information in the table of contents.

Defect 1376316: The application set the federal filing status of Guam and Virgin Islands employees to Exempt, which resulted to non-zero federal taxable wages in payroll.

Since Guam and Virgin Islands have no federal income tax, the federal filing status should be set to None.

As a workaround, manually set the federal taxable wages to zero.

 

This issue also affected the following applications:

Affected Applications	Defect No.
Manage Employee Information	1376318
Life Events/New Hires	1376324
State Withholding	1376321

Defect 1376323: The following information message should no longer display for employees who have a withholding state of either Guam or Virgin Islands: “You have no current Federal withholding information on record. In order to establish this information, please see your Payroll Administrator.”

Defect 1376325: The following information message should no longer display for employees who have a withholding state of either Guam or Virgin Islands: “You have no current Federal withholding information on record. In order to establish this information, please see your Payroll Administrator.”

Defect 1356965: The screen should provide a check box which lets you know that you must post your timesheets for the final leave period prior to closing the leave year.

Defect 1369123: REFRESH – CER scripts misidentified projects requiring updates. This caused slowdowns and conflicts in scheduling job runs, which contributed to difficulties entering EACs if refreshes instead had to run during the day.

Defect 1380811: The bill was calculated correctly, but the rate printed on the invoice was incorrect. As a workaround, you can download the data to Microsoft Excel and change the rate.

Defect 1368092: A system error occurred when you ran this application.

Defect 1385360: Expense Report Types with fields that contained more than 400 User Defined Values were unavailable for selection on the Expense Report.