What You’ll Find Here:

  • Regulations and law changes resulting from the COVID-19 pandemic response
  • Timely topics, upcoming tax law changes, and easier quarter-end reporting. The most recent information and updates will be posted at the top of the page.
  • Regular updates throughout the year as new information becomes available.

Coronavirus (COVID-19) Information

  • New 10/01/21 FFCRA Credits End September 30, 2021

    New 10/01/21 FFCRA Credits End September 30, 2021

    This is a reminder that the Families First Coronavirus Response Act (FFCRA) tax credits and voluntary provision of leaves extended under the American Rescue Plan can only be used until September 30, 2021. 

    If you have a pay period that includes September dates, but the check date is in October, you can still use credits for FFCRA leave in September. For more information and an example, click here.

  • Updated 9/01/21 COVID-19 Quarter-End Reporting Third Quarter 2021

    Updated 9/01/21 COVID-19 Quarter-End Reporting Third Quarter 2021

    The American Rescue Plan Act extended many provisions from previously enacted stimulus legislation. These include:

    • Extension of Employee Retention Credits to December 31, 2021.
    • Extension of the FFCRA sick and family leave tax credits to September 30, 2021. Third quarter 2021 is the last quarter you can use this credit.

    New for third quarter 2021 - Recovery Startup Businesses

    The American Rescue Plan expands the definition of eligible employers to include Recovery Startup Businesses To be considered a Recovery Startup Business, employers must meet certain requirements.

    A Recovery Startup Business must:

    • Have started any trade or business after February 15, 2020,
    • Not exceed $1,000,000 in average annual gross receipts, and
    • Not otherwise be eligible due to a full or partial suspension of operations or a decline in gross receipts.

    If you meet these requirements, the total amount of ERTC you are eligible for is $50,000 per quarter.

    Go to the Third Quarter COVID-19 Guide for detailed information about how these credits affected wage reporting.

    For more information on all business topics related to COVID-19, use the following resources:

  • Updated 9/01/21 Form 941 Explanation Guide for Third Quarter 2021

    Updated 9/01/21 Form 941 Explanation Guide for Third Quarter 2021

    During the COVID-19 pandemic, the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act provide refundable tax credits for qualifying wages. The American Rescue Plan Act extended these credits (with a few modifications), and they are on the updated Form 941 (rev date June 2021) as follows:

    • Employee Retention Tax Credit (ERTC under CARES Act) extended to December 31, 2021
    • Refund of wages paid for qualified sick leave (FFCRA) extended to September 30, 2021
    • Refund of wages paid for qualified expanded family leave (FFCRA) extended to September 30, 2021

    There are also credits for COBRA and a new category of leave under the Emergency Paid Sick Leave Act. For detailed information, click on the Third Quarter 941 Explanation Guide.

  • Form 7200 Explanation Guide

    Form 7200 Explanation Guide

    The Families First Coronavirus Response Act (FFCRA) Wages, Employee Retention Tax Credit (ERTC) Wages, COBRA Subsidy and Tax Credit Wages, and Form 7200 (Advance Payment of Employer Credits Due to COVID-19).

    Overview

    Starting in 2020, the FFCRA and the Coronavirus Aid, Relief, and Economic Security (CARES) Act both provide refundable tax credits for qualifying wages:

    • Employee Retention Tax Credit (ERTC) 
    • Refund of wages paid for qualified sick leave (FFCRA)
    • Refund of wages paid for qualified family leave (FFCRA)

    Starting in second quarter 2021, employers can also claim the COBRA Subsidy and Tax Credit on Form 7200.

    Paychex clients have two options to receive these credits:

    1. Paychex applies the amount of the credit to the federal tax liability - In most cases, this is the quickest way to receive the credit. If the refunds are more than the liability for the quarter, this will show as an overpayment on Form 941 for the quarter; you’ll receive a refund from the Internal Revenue Service (IRS).

    Important: If you chose this option, you should not file Form 7200.

    1. Complete and file a Form 7200 with the Internal Revenue Service (IRS).

    IRS Provides Update on Form 7200 May 19, 2021

    The IRS has advised that taxpayers cannot file the old version of Form 7200 for any second quarter 2021 advances. They must use the updated version of Form 7200 released on May 18, 2021 with a revision date of April 2021 to claim advances for second quarter 2021.

    For detailed instructions from the IRS, click here. Any Forms 7200 filed claiming an advance for second quarter 2021 using the January 2021 (or prior) revision of the form will be rejected.

    How is Paychex Handling Form 7200?

    For additional information about how Paychex is handling Form 7200, go to the following resources:

  • COBRA Coverage to be Subsidized Under American Rescue Plan

    COBRA Coverage to be Subsidized Under American Rescue Plan

    Under the American Rescue Plan Act, eligible individuals who have lost employer-sponsored health insurance after involuntary job loss or because of reduced hours will have COBRA continuation coverage subsidized 100 percent for a specified time period. For more information, go to the FAQ Regarding Recent COBRA Regulation Changes.

  • Customer Support during COVID-19

    Customer Support during COVID-19

    Paychex is prepared to help you stay informed and navigate potential business challenges. Check out the Customer Support during COVID-19 FAQs on paychex.com featuring information on workplace health, business continuity, and answers to frequently asked questions. Please check back often for updated information.

  • See what's happening in your state. State-by-State COVID-19 Resources

    See what's happening in your state. State-by-State COVID-19 Resources

    In response to the COVID-19 pandemic, state and local governments continue to issue new and modify existing executive orders. At the same time, the federal government is providing additional guidance to help keep people safe and coordinate re-opening efforts.

    At Paychex, we recognize the challenges this represents and want to help you navigate these regulations. We’ve created a COVID-19 Resources by State webpage with details on your state’s response, plus other valuable information:

    • Stay-at-Home or Shelter-in-Place orders
    • Collection processes
    • Leave regulations
    • Links to additional resources (state Department of Labor, state COVID-19 pages)

    These state pages are part of our Coronavirus Help Center, where you can gain access to additional free resources that are updated daily with information about relief and loan programs, return to work procedures, and much more. Plus, you’ll have an opportunity to register for webinars where our HR professionals, compliance experts, and legal team share insights and best practices on managing your business through this pandemic.

Operational Information

  • Q: Can I pick up my Quarter-End Tax package like I normally do?

    Q: Can I pick up my Quarter-End Tax package like I normally do?

    A: Because of COVID-19, you cannot pick up your Quarter-End Tax package at a Paychex service location as our offices are temporarily closed. Be sure to contact your Paychex payroll service representative to verify or change your delivery method and mailing address if necessary.

    If you have additional questions, please contact your payroll service representative.

  • Updated 9/01/21 2021 Bank and Local Paychex Office Holiday Closings

    Updated 9/01/21 2021 Bank and Local Paychex Office Holiday Closings

    For information about how bank and local Paychex office holiday closings may affect payroll processing, please review the 2021 Federal Banking Holidays.

    Upcoming Holidays

    Monday, October 11: Banks are closed in observance of Columbus Day; local Paychex offices are open.

    Thursday, November 11: Banks are closed in observance of Veterans' Day; local Paychex offices are open.

    Thursday, November 25: Banks and local Paychex offices are closed in observance of Thanksgiving Day.

    We're happy to work with you to schedule your holiday payrolls. If you have any questions, please contact your Paychex payroll service representative.

    Note: On the holidays that Paychex local offices are closed, you won’t have access to your normal payroll service representative; however, we have limited resources available 24/7 for emergencies.

Quarterly Tax Information 

  • Updated 9/01/21 2021 Client Quarter-End Reference Guide for Third Quarter

    Updated 9/01/21 2021 Client Quarter-End Reference Guide for Third Quarter

    We've put together the Third Quarter Employer Reference Guide to help you prepare for a successful quarter-end.

    The deadline for reporting third quarter 2021 payroll information to Paychex is September 30, 2021

    Make sure you review the Guide for the following changes:

    • Delaware: The Delaware Department of Revenue (DOR) launched a new Taxpayer Portal. The portal will allow you to file certain tax returns, make payments, request payment plans, and delegate authorization to other users. Taxpay clients must set up Paychex as an authorized user so we can continue to remit payments and returns on your behalf in 2022.
    • Ohio Locals: As of January 1, 2022, if employees haven’t returned to your place of business, and continue to work from home, they will need to be taxed based on their home locations being their place of work. You’ll need to register with local tax agencies if you have employees working from home in locals where you aren’t currently registered.
    • Virginia: On July 1, 2021, the Virginia Overtime Wage Act went into effect. This law requires employers in the Commonwealth to pay an overtime wage rate to non-exempt employees equal to one and one-half times the regular rate of pay for all hours worked in excess of 40 hours in a workweek. The required calculations for the determination of the regular rate differ from the federal Fair Labor Standards Act (FLSA) in some instances.
  • Updated 09/01/21 Quarter-End Checklist - Third Quarter

    Updated 09/01/21 Quarter-End Checklist - Third Quarter

    The Quarter-End Checklist has been updated with 2021 COVID-19 wage reporting information for third quarter 2021.

  • 2021 Client Quarter-End Instructions – Third Quarter

    2021 Client Quarter-End Instructions – Third Quarter

    The Client Quarter-End Instructions for third quarter 2021 should be reviewed in conjunction with your quarterly tax package.

    • Taxpay Clients: A few states will not allow Paychex to reproduce their returns. If you must file any of these types of returns, we included a facsimile report with your tax package. Use these instructions for additional filing information.
    • Non-Taxpay Clients: The tax returns that you must file are in your tax package; use these instructions for additional filing information.

    The deadline for reporting third quarter 2021 payroll information to Paychex is September 30, 2021

Professional Employer Organization (PEO) Clients

  • Updated 9/13/21 COVID-19 PEO Quarter-End Reporting Third Quarter 2021

    Updated 9/13/21 COVID-19 PEO Quarter-End Reporting Third Quarter 2021

    The American Rescue Plan Act signed by the President on March 11, 2021, extended many provisions from previously enacted stimulus legislation including:

    • Extension of Employee Retention Credits to December 31, 2021.
    • Extension of the FFCRA sick and family leave tax credits to September 30, 2021. Third quarter is the last quarter you can use this credit.

    New for third quarter 2021 - Recovery Startup Businesses

    The American Rescue Plan expands the definition of eligible employers to include Recovery Startup Businesses To be considered a Recovery Startup Business, employers must meet certain requirements.

    A Recovery Startup Business must:

    • Have started any trade or business after February 15, 2020,
    • Not exceed $1,000,000 in average annual gross receipts, and
    • Not otherwise be eligible due to a full or partial suspension of operations or a decline in gross receipts.

    If you meet these requirements, the total amount of ERTC you are eligible for is $50,000 per quarter.

    Go to the Third Quarter PEO COVID-19 Guide for detailed information about how these credits affected wage reporting.

    For more information on all business topics related to COVID-19, use the following resources:

  • Update 9/13/21 2021 PEO Client Quarter-End Reference Guide

    Update 9/13/21 2021 PEO Client Quarter-End Reference Guide

    We've put together the Third Quarter PEO Employer Reference Guide to help you prepare for a successful quarter-end.

    The deadline for reporting third quarter 2021 payroll information to Paychex is September 30, 2021

    Make sure you review the guide for the following changes:

    • Ohio Locals: As of January 1, 2022, if employees haven’t returned to your place of business, and continue to work from home, they will need to be taxed based on their home locations being their place of work. You’ll need to register with local tax agencies if you have employees working from home in locals where you aren’t currently registered.
    • Virginia: On July 1, 2021, the Virginia Overtime Wage Act went into effect. This law requires employers in the Commonwealth to pay an overtime wage rate to non-exempt employees equal to one and one-half times the regular rate of pay for all hours worked in excess of 40 hours in a workweek. The required calculations for the determination of the regular rate differ from the federal Fair Labor Standards Act (FLSA) in some instances.
  • Updated 9/13/21Quarter-End PEO Checklist - Third Quarter

    Updated 9/13/21Quarter-End PEO Checklist - Third Quarter

    The Quarter-End PEO Checklist has been updated with 2021 COVID-19 wage reporting information for third quarter 2021.

  • Form 7200 Explanation Guide - Paychex PEO

    Form 7200 Explanation Guide - Paychex PEO

    The Families First Coronavirus Response Act (FFCRA) Wages, Employee Retention Tax Credit (ERTC) Wages, COBRA Subsidy and Tax Credit Wages, and Form 7200 (Advance Payment of Employer Credits Due to COVID-19).

    Overview

    Starting in 2020, the FFCRA and the Coronavirus Aid, Relief, and Economic Security (CARES) Act both provide refundable tax credits for qualifying wages:

    • Employee Retention Tax Credit (ERTC) 
    • Refund of wages paid for qualified sick leave (FFCRA)
    • Refund of wages paid for qualified family leave (FFCRA)

    Starting in second quarter 2021, employers can also claim the COBRA Subsidy and Tax Credit on Form 7200.

    Paychex PEO clients have two options to receive these credits:

    1. Paychex PEO applies the amount of the credit to the federal tax liability - In most cases, this is the quickest way to receive the credit. If the refunds are more than the liability for the quarter, this will show as an overpayment on Form 941 for the quarter and you’ll receive a refund from the Internal Revenue Service (IRS).

    Important: If you chose this option, you should not file Form 7200.

    1. Complete and file a Form 7200 with the Internal Revenue Service (IRS).

     

    IRS Provides Update on Form 7200 May 19, 2021

    The IRS has advised that taxpayers cannot file the old version of Form 7200 for any second quarter 2021 advances. They must use the updated version of Form 7200 released on May 18, 2021 with a revision date of April 2021 to claim advances for second quarter 2021.

    For detailed instructions from the IRS, click here. Any Forms 7200 filed claiming an advance for second quarter 2021 using the January 2021 (or prior) revision of the form will be rejected.

    How is Paychex PEO Handling Form 7200?

    For additional information about how Paychex PEO is handling Form 7200, go to the following resources:

    Form 7200 Explanation Guide - PEO

    Form 7200 Detailed Client Instructions - PEO

Additional Resources

You may find this information helpful throughout the year.

Paychex Business Podcasts

Our business podcasts feature interviews with today’s top small business owners and experts in human resources. Learn about the current events and topics affecting businesses today, and receive guidance on how to navigate the challenges you may face.

Paychex Webinars

Whether you're trying to better manage cash flow, attract and retain employees, or improve productivity through HR technology, Paychex Webinars give you the information you need to make informed decisions.

2021 Payroll Calendar

To easily keep track of important dates, including bank closings, quarter-end processing, and banking holidays, click here for the 2021 Payroll Calendar.

2021 Tax Bulletin

For 2021 federal wage base limits, retirement plan contributions, and information you can post for your employees, click here.

2021 Mid-Year State Minimum Wage Changes 

Click here to review the 2021 mid-year minimum wage changes.

2021 SUI Rates

Due to the COVID-19 pandemic, many state unemployment insurance (SUI) agencies are experiencing an increased volume of submitted claims, causing some agencies to send out rate notices later than usual. For more information, click here.

Ordering Supplies

If you need supplies, such as a new Paychex binder, Form I-9, and COVID-19 resources visit the Paychex Store.

State Tax Agency Addresses

You can use the following resources to get state tax agency addresses if you need to file state withholding or state unemployment insurance (SUI) returns: