Paying taxes is one of the main liabilities to handle for employers operating throughout the nation. Through IRS Forms, employers can make a request for advance payment of the tax credits under the provisions of the FFCRA and CARES Act.
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What is IRS Form 7200?
Though IRS is not a new thing to be included, there are a few changes that have been introduced due to COVID-19, which the employers need to know about.
These modifications have been reflected in the re-designed Form 7200, which was released at the end of January 2021 to be used in Quarter 1 and Quarter 2 of the current year.
Why use IRS Form 7200 in QuickBooks Payroll?
With IRS 7200, the authorities ask employers to restrict themselves from using or filling up the old forms for the upcoming quarters. Hence, it becomes necessary to use the new redesigned form for the purpose.
QuickBooks being the most widely used accounting software solution offers complete support to employers so far as the new form is concerned.
Using IRS Form 7200 in QuickBooks Payroll: Steps to Follow
Step 1: Figure out the outstanding Tax Credits
- Go to Reports. You will find the option at the top
- Choose Employees and Payroll
- Click on More Payroll Reports in Excel
- Choose Payroll Summary by Tax Tracking Type
- Click on Enable Content
- Select the date range for which the advance payment is being requested
- Choose Get QuickBooks Data
- Choose Payroll Summary by Tax Tracking Type
- From the dropdown, choose only National Paid Leave and CARES….
- Deselect Select All to unmark other selections
- In the Amount columns, add the amounts
- Check your total credit
Step 2: Create the IRS form and complete it
- Go to Employees
- Select Payroll Center
- Select the File Forms tab
- Choose Quarterly Form 7200
- Fill in the details as asked and include the totals calculated in the above step i.e., Step 1
- Print the form and fax it to the IRS
I hope the above mentioned steps are clear to make people understand how to go about it and use the IRS form 7200 in QuickBooks Payroll.
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Where do we find the IRS Form 7200?
You can visit IRS.gov and access the form whenever you want.
Do I need to Adjust my 941?
Yes, of course. You will require adjusting the 941 forms to reflect the new IRS form 7200.
What if I still use the older IRS Form?
The same will not be accepted.
Is QuickBooks Equipped Enough to handle 7200 Filings?
Being the most widely used accounting software solution, it is well-equipped to handle proper IRS 7200 filing.
