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Product support for the Creative Solutions Accounting platform ended on September 30, 2020.

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Resolution

Newly hired employees paid on or after April 1, 2010, in which the employer is exempt from paying the employer share of the FICA-Social Security tax, must have both a Hire Date entered and the New Hire FICA Credit box marked on the employee's Personal/W-2 tab in order for the employer FICA-SS to not calculate. Per the requirements of the HIRE act, checks entered on eligible employees from March 18 - March 31, 2010 will have the employer portion of FICA-SS calculated, but the employer will be credited this amount on the 2nd Quarter 941 Form.

On Creative Solutions Accounting version 2010.0.4 (release date June 23, 2010) additional options were added to handle calculations and adjustments for the March portion of the FICA credit. The Edit / New Hire FICA Credit Information dialog has been added to the Setup / Employees window to display the FICA-SS employer exempt wages amount earned between March 19 and March 31, 2010. The program calculates this amount when you change payroll periods to and from a March 2010 period or when you choose Edit / Rebuild First Quarter FICA Credit in the Setup / Employees window. You can also enter an adjustment in the New Hire FICA Credit Information dialog, if needed.

If payroll checks were entered on eligible employees before the New Hire FICA Credit box was marked, the employer portion of the FICA-SS was calculated. Checks are not retroactively updated if you mark the New Hire FICA Credit box on the employee after the payroll checks were entered. In order for check-based reports such as the Depository Totals to be accurate, you should ensure the employees are setup correctly, and perform one of the actions below on the checks in Payroll Check Entry. If you choose not to correct the payroll checks, earnings-based reports such as the 941 Worksheet and Payroll Tax Summary along with 941 and Schedule B will reflect the correct amounts as long as you have marked the New Hire FICA Credit box on the employee.

• For a handwritten or unprinted check, select Edit / Edit Employer Amounts to zero out the amount of the employer FICA-SS.
• For a printed check in the latest payroll period, select Edit / Void, choose the Action of Void and Duplicate to create an unprinted version of the check. Select the check in Payroll Check Entry grid and press the F5 button on your keyboard which will recalculate the check and zero out the employer portion of the FICA-SS. You will need to either reprint the check or enter a Check Date and Check Number to update the status of the check.
• For a printed check in a previous payroll period, select Edit / Void, choose the Action of Void, and reenter the check as a handwritten check.
• For a check that has been cleared (CLR) on a Bank Reconciliation, select Edit / Reverse to reverse the check and reenter it as a handwritten check. Both the reversed and reentered check will appear on your current Bank Reconciliation but by clearing both, they will wash each other out.

Note: You may have made deposits based on the original amount of taxes calculated; by correcting the payroll checks, your amount of liability will be reduced which will lower subsequent deposits.

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