04
June, 2020

APS Releases Form 7200 Report for COVID-19 Tax Credits

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APS Releases Form 7200 Report for COVID-19 Tax Credits

The past few months have seen significant changes to paid sick and family leave management. With these changes come new reporting requirements all businesses must adhere to, including additional information needed on Form 941.

In our latest software release, APS has launched a report to help businesses easily pull the information they need to file Form 7200 (Advance Payment of Employer Credits Due to COVID-19) with the IRS. In an effort to further assist clients with completing this required form, APS has added this report to make COVID-19 paid leave management easier.

What is Form 7200?

IRS Form 7200 is used to request an advance payment of tax credits for qualified sick and qualified family leave wages, as well as the employee retention credit that employers may claim on Form 941. The Families First Coronavirus Response Act (FFCRA) provides tax credits for qualified sick and family leave wages credits.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides employers an employee retention tax credit if they were subject to a full or partial closure order due to COVID-19 or experienced a significant decline in gross receipts. Employers that file Forms 941, 934, 944, or CT-1 may file Form 7200. Self-employed individuals cannot use Form 7200 to request an advance payment of their tax credits.

Form 7200 Report in APS

APS developed this report for businesses attempting to file Form 7200 for advance payment of the tax credits for qualified sick leave wages and family leave wages from the IRS. When the report is run, it will return wage information related to credits due to COVID-19.

Form 7200 in Report Manager

Form 7200 Report in the Report Manager

Form 7200 Report

Form 7200 Run Report Tab in APS

APS users may run this report for a date range and it will return the following information:

  • Total Sick Leave Wages: This is the total of incomes with the “Paid Sick Leave Credit - Quarantine” or “Paid Sick Leave Credit - Care for Others” credit type.
  • Total Family Leave Wages: This is the total of incomes with the “Child Care Leave Credit” credit type.
  • Total Leave Wages: This is a sum of all leave credit type incomes.
  • Total Allowable Credit: This is the total tax credit the client was due from the FFCRA at the time of the payroll run
  • Tax Credit Applied: This is the total amount of tax credit APS has applied to the cash requirement for the payroll runs submitted.
  • Tax Credit Difference: This is the difference between the allowable credit and the credit applied.

This detailed wage information is generated in a matter of seconds, making it easier for employers to complete Form 7200 without having to manually pull data from multiple sources.

APS users may run this report for a date range and it will return the following information:

  • Total Sick Leave Wages: This is the total of incomes with the “Paid Sick Leave Credit - Quarantine” or “Paid Sick Leave Credit - Care for Others” credit type.
  • Total Family Leave Wages: This is the total of incomes with the “Child Care Leave Credit” credit type.
  • Total Leave Wages: This is a sum of all leave credit type incomes.
  • Total Allowable Credit: This is the total tax credit the client was due from the FFCRA at the time of the payroll run
  • Tax Credit Applied: This is the total amount of tax credit APS has applied to the cash requirement for the payroll runs submitted.
  • Tax Credit Difference: This is the difference between the allowable credit and the credit applied.
Form 7200 Report

Form 7200 Run Report Tab in APS

This detailed wage information is generated in a matter of seconds, making it easier for employers to complete Form 7200 without having to manually pull data from multiple sources.

FFCRA Tax Credit Report Updated

APS also updated the FFCRA Tax Credit report to include Medicare taxable wages that were paid out to employees for a specific date range. This report provides additional assistance in the reconciliation of taxable wages when applying for the FFCRA tax credit.

FFCRA Tax Credit Report

FFCRA Tax Credit Report in APS

Making FFCRA and CARES Act Compliance Easier

Since the beginning of the Coronavirus pandemic, APS has worked to ensure our product offerings make FFCRA and CARES Act compliance an easier process for our customers. We have kept a finger on the pulse of ever-changing regulations and made changes to our technology to stay ahead of the curve.

Since APS is designed as one system, we deliver technology that has steadily built momentum over the years. That’s why APS is rated as a G2 Momentum Leader based on customer satisfaction and verified reviews. Our approach to software development has earned us the distinction of being recognized as a trending payroll and HR platform. We take a deliberate and thoughtful approach to product growth without sacrificing the client experience.

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