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Covid Earnings Setting

In Q2 2021 the IRS made changes to how Qualified Covid Earnings exemptions are calculated. Please make sure that Covid Earnings are no longer set to be exempt from SS EE, SS ER, MED EE or MED ER in the ‘Federal Exemptions’ tab of the Covid Earnings Payroll Code Setup Card. The credit should not be part of the payroll lines/ledger anymore as it is now taken towards the bottom of the 941 as an adjustment.

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Last Review: 07/12/2022

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