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OSAS version 8 2020 Tax Update 1 July 10, 2020

Open Systems Accounting Software version 8

2020 Tax Update

Date: July 10, 2020

To: Software Maintenance Plan Subscribers

Products: Payroll for OSAS version 8.00

Changes to the IRS Form 941 released in April of 2020 for second quarter and subsequent reporting require several changes

to the 941 Worksheet function in OSAS, allowing the system to accommodate several pieces of information necessary for

reporting the Sick Leave, Family Leave, and Employee Retention Credit information resulting from compliance with the

provisions of the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic

Security (CARES) Act.

These changes include many new prompts for data necessary to print the 941 Worksheet, a new calculator to assist you in

figuring the refundable and nonrefundable portions of the new credits, and support for Part 3 of Form 941.

The update is available via the online update process. You can install it using the Install Maintenance Updates function on the

Resource Manager Installation and Configuration menu.

The update has been tested with version 8.00 of Payroll, Payroll with Direct Deposit, Payroll for CJC, and Payroll with Direct

Deposit for CJC. If you have any questions about installing this update, please contact your software provider, call OSAS

Support at 1-800-582-5000, or send an email message to [email protected].

As with all reporting processes, check your procedures carefully and consult your accountant or tax preparer for details on

how this update affects your business. Additional information is available from the IRS at www.irs.gov. If you have software

questions, contact your software solution provider or Open Systems Support.

PA 941 Worksheet Enhancements

The PA 941 Worksheet function now includes a number of new prompts for Form 941 data including additional screens of

prompts to support the requirements of the new FFCRA and CARES Act reporting.

The 941 Worksheet function aids you in completing the IRS Form 941 by collecting and calculating the various values that

are reported on the form. You can follow the IRS Form 941 instructions to calculate the Nonrefundable and Refundable

portions of Sick and Family Leave and Employee Retention Credits for Form 941, or you can use the Form 941 “Worksheet

1” Calculator. The calculator uses data from the Payroll system and your entries on earlier 941 Worksheet screens, and

prompts you for additional information to calculate the Nonrefundable and Refundable portions of Sick and Family Leave

and Employee Retention Credits for Form 941.

NOTE You must gather the required information to enter into the worksheet tool in accordance with the Form 941

instructions. Make sure you double-check your information; the system does not validate numbers you

enter into any prompts. Refer to the Form 941 instructions or consult a tax professional with any questions.

If you use Enhanced Payroll Tax Reporting (EPTR), see the special instructions on page 10.

mailto:[email protected]

http://www.irs.gov/


Installing the Tax Update for Version 8

You can install the 2020 tax update for OSAS version 8 using the online update process via the Install Maintenance

Updates function.

Run the Install Maintenance Updates function from the Resource Manager Installation and Configuration menu and follow

the usual process to find, download, and install the update.

941 Worksheet

The 941 Worksheet function on the PA Periodic Processing menu has additional prompts on the screen.

1. Select the Quarter with which you are working.

2. Enter any Current Quarter’s Sick Pay tax

adjustment.

3. Enter any Current Quarter’s Adjustments for

Tips and GTU tax adjustment.

4. Select the Effective Adjustment Date.

5. If applicable, enter the Qualified Small Business

Payroll Tax Credit for Increasing Research

Activities for the quarter.

6. Select an Effective Tax Credit Date, Research

and Nonrefundable, as applicable. This date is

applicable to both the payroll tax credit and the

refundable credits.

7. If applicable, enter any tax due for Section

3121(q) Notice and Demand.

8. Select the Effective 3121(Q) Adjustment Date, if

necessary.

9. If you are a Seasonal Employer Not Filing

Return for Every Quarter, mark the check box or select ‘Y’.

10. If applicable, select the Date Business Closed or Stopped Paying Wages.

11. If applicable, enter the Credit from Form 5884-C, Line11, for This Quarter.

12. Enter the Total Deposits for Quarter.

13. Press PgDn to continue.

NOTE You must gather the required information to enter into the worksheet tool in accordance with the Form 941

instructions. Make sure you double-check your information; the system does not validate numbers you

enter into any prompts. Refer to the Form 941 instructions or consult a tax professional with any questions.


The FFCRA and CARES Act screen prompts you for additional information regarding FFCRA qualified sick leave and

FFCRA qualified family leave.

FFCRA Qualified Sick Leave

1. If you paid any qualified wages for sick leave under the provisions of the FFCRA in this quarter, mark the

associated check box or enter ‘Y’. When you mark the check box, the remaining fields in the section are enabled

when you tab out of the field.

2. If you excluded those wages from employer social security during payroll processing, mark the associated check box

or enter ‘Y’.

3. Enter the amount of Qualified Sick Leave Wages – This Quarter, as applicable.

4. Enter the amount of Qualified Health Plan Expense Allocable to Sick Leave Wages, as applicable.

FFCRA Qualified Family Leave

5. If you paid any qualified wages for family leave under the provisions of the FFCRA in this quarter, mark the

associated check box or enter ‘Y’. When you mark the check box, the remaining fields in the section are enabled

when you tab out of the field.

6. If you excluded those wages from employer social security during payroll processing, mark the associated check box

or enter ‘Y’.

7. Enter the amount of Qualified Family Leave Wages – This Quarter.

8. Enter the amount of Qualified Health Plan Expense Allocable to Family Leave Wages.

Press PgDn to continue.

On the second FFCRA and CARES Act screen, fill in additional information regarding employee retention credit, refundable

and nonrefundable portions of the qualified sick and family leave and employee retention credits, and advance and deferral

amounts.


Employee Retention Credit

1. Enter the amount of Employee Retention Credit Wages – This Quarter.

2. Enter the amount of qualified health plan expense allocable to ERC wages this quarter in the associated field.

3. Enter the amount of Employee Retention Credit Wages – Mar 13-31 2020.

4. Enter the amount of qualified health plan expenses allocable to ERC wages for Mar 13-31 2020 in the associated

field.

941 “Worksheet 1” Results

In the 941 “Worksheet 1” Results section you can enter the refundable and nonrefundable portions of the credit for qualified

sick and family leave and the employee retention credit, or you can use the “Worksheet 1” Calculator to calculate the

amounts based on your entries in the previous screens.

You have two options:

You can manually calculate your refundable and nonrefundable portions of the Qualified Sick and Family Leave and

the Employee Retention credits using the worksheet and instructions from Form 941, and enter the values into the

screen.

You can mark the Use Calculator? check box (or enter ‘Y’) to utilize the 941 “Worksheet 1” Calculator function to

calculate the values. See the “Worksheet 1 Calculator” section on page 8 for more details.


If you manually enter the 941 “Worksheet 1” Results:

1. Leave the Use Calculator? check box blank.

2. Enter the Nonrefundable Portion of the Credit for Qualified Sick and Family Leave.

3. Enter the Nonrefundable Portion of the Employee Retention Credit.

4. Enter the Refundable Portion of the Credit for Qualified Sick and Family Leave.

5. Enter the Refundable Portion of the Employee Retention Credit.

REMEMBER: Make sure you double-check your information; the system does not validate numbers you enter into any

prompts.

If you use the “Worksheet 1” Calculator to enter the 941 “Worksheet 1” Results, see the applicable section on page 8.

Advance and Deferral Amounts

Note: If you use the calculator, you will return to this screen once the calculator function is complete.

1. Enter the Total Advance Received from Form 7200 for the Quarter, as applicable.

2. Enter any Deferred Amount of the Employer Share of Social Security Tax, as applicable.

3. Press PgDn to complete the 941 Worksheet.


The Output Information toolbar will appear. You can print, preview or export the 941 Worksheet to an electronic file

(PDF, Excel, HTML, RTF, TXT). The values shown on the 941 Worksheet screen and the FFCRA/CARES screen will

be filled in on the report where appropriate.


Sample 941 Worksheet Report pg 1




Review all amounts for accuracy before you enter any values on Form 941. Make sure you double-check your

information; the system does not validate numbers you enter into any prompts. Refer to the Form 941 instructions or consult

a tax professional with any questions.



“Worksheet 1” Calculator

The “Worksheet 1” Calculator uses values from the FFCRA and CARES Act screen, from Payroll history, and from values

you enter into the available prompts. If you are using the calculator to fill in the 941 “Worksheet 1” Results fields, mark the

Use Calculator? check box (or enter ‘Y’) on the FFCRA and CARES Act screen and press PgDn to open the “Worksheet 1”

Calculator.

941 “Worksheet 1” Calculator page 1

There are no editable fields on this screen. All fields

are read-only. Review the amounts shown, then press

PgDn to continue.


Only two fields are editable on this screen:

Line 2a(i): Enter any qualified sick leave

wages included on Form 941 line 5c not

included in line 5a(i) due to a Social Security

base limit in the associated field.

Line 2e(i): Enter any qualified family leave

wages included on Form 941 line 5c not

included in line 5a(ii) due to a Social Security

base limit in the associated field.

Press PgDn to continue.



There are no editable fields on this screen. All fields

are read-only. Review the amounts shown, then press

PgDn to continue.


There are no editable fields on this screen. All

fields are read-only. Review the amounts shown.

Press PgDn to return to the FFCRA and CARES

Act screen.


When you use the Calculator, the nonrefundable and refundable portions fields become read-only. If these values are not

correct, you can edit the amounts you entered. However, when you change an amount after you run the Calculator, the Use

Calculator check box is cleared, as well as the refundable and nonrefundable portions fields. Mark the check box to run the

calculator again.

REMINDER: Double-check your information; the system does not validate numbers you enter into any prompts. Refer to the

Form 941 instructions or consult a tax professional with any questions.

Press PgDn to return to the FFCRA and CARES Act screen, where you can fill in the Advance and Deferrals Amount

section, if necessary.

Special Instructions for Enhanced Payroll Tax Reporting (EPTR) users:

If you use the eFile service from our partner, Aatrix Software, to electronically file your tax information with the

government, you must be aware of the following circumstances to ensure the values you enter into the EPTR 941 preparer are

accurate.

If you have qualified sick or family leave wages to report, you can enter those wages from the 941 report viewer into the

EPTR viewer. However, because those wages were included along with other payroll data in OSAS, you may need to reduce

the taxable social security wages that are defaulted into the viewer by those amounts, depending on whether you excluded

them from employer social security taxes or not. As always, you must ensure that the numbers in the viewer are accurate

before filing.

To determine if you need to manually adjust the amount you enter on line 16 in the EPTR 941 viewer, and the amount by

which you need to adjust it, review the 941 Worksheet you created using the 941 Worksheet function.

When you processed the qualified sick and/or family leave wages, did you exclude qualified sick leave or qualified

family leave wages from employer social security taxes?

Is the reported nonrefundable portion of credit for sick and family leave wages > 0?

Is the reported nonrefundable portion of employee retention credit > 0?


Criteria (from 941 Worksheet) Answer Amount to manually adjust

Did you exclude the qualified sick leave and/or

qualified family leave wages from your employer

social security taxes?

No

Subtract the employer social security tax amount

based on the qualified sick leave and/or qualified

family leave wages for the quarter

Is the nonrefundable portion of credit for sick and

family leave wages greater than 0? Yes

Subtract the nonrefundable portion of credit for the

quarter

Is the nonrefundable portion of employee retention

credit greater than 0? Yes

Subtract the nonrefundable portion of credit for the

quarter

Scenario 1:

941 Worksheet Regular earnings: $40,000 Qualified Sick Leave Wages: $2,000 Qualified Family Leave Wages: $1,000

Did you exclude qualified sick and/or family leave wages from employer SS tax amount? Yes (No adjustment

needed on EPTR 941)

Nonrefundable portion of credit for qualified sick and family leave wages (from Worksheet 1): $150 (greater than

zero, so subtract from line 16 on EPTR 941)

Nonrefundable portion of employee retention credit (from Worksheet 1): $100 (greater than zero, so subtract from

line 16 on EPTR 941)

EPTR 941 Viewer Line 5a column 1: Taxable Social Security Wages from Payroll (original): $43,000 Line 5a(i) column 1: Qualified Sick Leave Wages (original): $0 Line 5a(ii) column 1: Qualified Family Leave Wages (original): $0

Line 11b: Nonrefundable portion of credit for qualified sick and family leave wages from Worksheet 1: $150

Line 11c: Nonrefundable portion of employee retention credit from Worksheet 1: $100

Line 16 (after marking “you were a monthly schedule depositor for the entire quarter” check box)

Month 1: $1800

Month 2: $1200

Month 3: $1700

Manually adjust to match 941 Worksheet:

Line 5a column 1: Taxable Social Security Wages: $40,000 Line 5a(i) column 1: Qualified Sick Leave Wages: $2,000 Line 5a(ii) column 1: Qualified Family Leave Wages: $1,000

Line 16: The months are automatically populated. You must subtract the total nonrefundable credit amount from Line 16.

Month 1 = $1800 Month 2 = $1200 Month 3 = $1700 - $150 - $100 = $1450

Scenario 2:

941 Worksheet Regular earnings: $40,000 Qualified Sick Leave Wages: $2,000 Qualified Family Leave Wages: $1,000


Did you exclude qualified sick and/or family leave wages from employer SS tax amount? No. Employer SS tax amount = $124 for Qualified Sick Leave Wages, $62 for Qualified Family Leave Wages (Subtract the amount of employer SS tax from line 16 on EPTR 941)

Nonrefundable portion of credit for qualified sick and family leave wages (from Worksheet 1): $150 (greater than

zero, so subtract from line 16 on EPTR 941)

Nonrefundable portion of employee retention credit (from Worksheet 1): $100 (greater than zero, so subtract from

line 16 on EPTR 941)

EPTR 941 Viewer Line 5a column 1: Taxable Social Security Wages from Payroll (original): $43,000 Line 5a(i) column 1: Qualified Sick Leave Wages (original): $0 Line 5a(ii) column 1: Qualified Family Leave Wages (original): $0

Line 11b: Nonrefundable portion of credit for qualified sick and family leave wages from Worksheet 1: $150

Line 11c: Nonrefundable portion of remployee retention credit from Worksheet 1: $100

Line 16 (after marking “you were a monthly schedule depositor for the entire quarter” check box)

Month 1: $1800

Month 2: $1200

Month 3: $1700

Manually adjust to match 941 Worksheet:

Line 5a column 1: Taxable Social Security Wages: $40,000 Line 5a(i) column 1: Qualified Sick Leave Wages: $2,000 Line 5a(ii) column 1: Qualified Family Leave Wages: $1,000

Line 16: The months are automatically populated. You must subtract the employer SS tax amount paid for qualified sick leave wages,

the employer SS tax amount paid for qualified family leave wages, and the total nonrefundable credit amount from Line 16.

Month 1 = $1800 Month 2 = $1200 Month 3 = $1700 - $124 - $62 - $150 - $100 = $1264

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