COVID-19 Common Reasons for Client Refunds

Explanation

If you pay your employees for Paid Family Medical Leave, Paid Sick Leave, or Employee Retention Tax Credits for COVID-19 relief, you're eligible for a credit or reduction in federal taxes owed. Namely will process the credit and provide you with the refund directly. Please find more information in our article here.

A refund is issued as soon as we have the funds in house to cover the refund amount. If the void is large, or if you are no longer liable in the jurisdiction, the refund may come directly from the agency instead of Namely.

These are issued a week or so after the end of each quarter. Variances can be caused by a number of things, including tax rate changes or employee-level payroll adjustments. For more information, read: Calculating Employee Tax Variances.

Employers who are not government agencies or political subdivisions may take a deduction if their withholding tax return (Form MO-941) is filed and paid timely. These credits are issued one month following the end of each quarter.

Any funds that are collected from you throughout the quarter, but can not be paid, are returned four to six weeks after each quarter has ended. We cannot remit tax payments if the tax remains in "Applied for" status. These jurisdictions can be identified by reviewing your company tax package in Namely Payroll.

During the Quarter End filing process, if a debit payment method is required by a state agency, and the state's calculation of taxes owed is lower than expected, Namely will be forced to pay the lower liability amount, and refund you the difference. This is usually caused by a discrepancy between the rate the agency and Namely have on file.