COVID-19 RESPONSE IN PAYROLL

We are happy to announce the availability of our COVID-19 Assistance module in our Payentry® payroll software. You can access the COVID-19 Assistance on your Payentry dashboard by clicking on the COVID-19 Assistance Quick Link.

 

  • FFCRA Paid Leave – Amount the company has paid to employees with the FFCRA related earnings codes
  • Tax Credits Applied to Payroll – Tax credits by check date related to FFCRA related earnings codes
  • Tax Deferrals – Employer Social Security amount deferred related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act
  • Paycheck Protection Program – Report to help companies determine PPP related payroll data
  • Sources of Information – Helpful links for companies to support their compliance with the new normal

Already available to our clients are earnings types, tax credits and deferrals related to the Families First Coronavirus Response Act (FFCRA).

Paid Leave

The Act provides that employees of eligible employers can receive two weeks (up to 80 hours) of paid sick leave at 100% of the employee’s pay where the employee is unable to work because the employee is quarantined, and/or experiencing COVID-19 symptoms and seeking a medical diagnosis. An employee who is unable to work because of a need to care for an individual subject to quarantine or to care for a child whose school is closed or child care provider is unavailable for reasons related to COVID-19, can receive two weeks (up to 80 hours) of paid sick leave at 2/3 the employee’s pay. An employee who is unable to work due to a need to care for a child whose school is closed, or child care provider is unavailable for reasons related to COVID-19, may, in some instances, receive up to an additional ten weeks of expanded paid family and medical leave at 2/3 the employee’s pay.

Earning Code Earning Type Benefit/Limits
CRASick CRA Sick Leave Employees taking leave will be paid at their regular rate up to $511 per day and a maximum of $5,110 (for 80 hours)
CRACare CRA Dep Care Employees taking leave will be paid at 2/3 their regular rate, up to $200 per day and a maximum of $2,000 (for 80 hours)
CRAChldLve CRA Child Leave After first two weeks of CRACare:  Employees taking leave will be paid at 2/3 their regular rate of pay up to $200 per day and $10,000 maximum (10 weeks of paid expanded family and medical leave)
CRAInsur Memo CRA Ins Cr This is to record some insurance-related expenses that are also eligible for the tax credit.

Paid Sick Leave Tax Credit

For an employee who is unable to work because of Coronavirus quarantine or self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis, eligible employers may receive a tax credit for the employee’s regular rate of pay, up to $511 per day and $5,110 in the aggregate, for a total of 10 days (80 hours).

If an employee is caring for someone with Coronavirus, or is caring for a child because the child’s school or child care facility is closed, or the child care provider is unavailable due to the Coronavirus, employers may claim a credit for two-thirds of the employee’s regular rate of pay, up to $200 per day and $2,000 in the aggregate, for up to 10 days. Eligible employers are entitled to an additional tax credit based on costs to maintain health insurance coverage for the eligible employee during the leave period.

Child Care Leave Tax Credit

In addition to the sick leave credit, if an employee is unable to work because of a need to care for a child whose school or child care facility is closed or whose child care provider is unavailable due to the Coronavirus, an employer may receive a refundable child care leave credit. This credit is equal to two-thirds of the employee’s regular pay, capped at $200 per day or $10,000 in the aggregate. Following the paid sick leave, up to 10 weeks of leave can be counted towards the child care leave credit. Eligible employers are entitled to an additional tax credit based on costs to maintain health insurance coverage for the eligible employee during the leave period.

 

More details from the IRS can be found here.