HR 6201 Families First Coronavirus Response Act and Sage BusinessWorks Payroll

The Families First Coronavirus Response Act (FFCRA/HR 6201) outlines that certain employers provide their employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19.

For COVID-19 related reasons, employees receive up to 80 hours of Paid Sick Leave and expanded childcare leave when employee’s children’s schools are closed or when childcare providers are unavailable. When paying employees with this Leave it is important and recommended NOT to include any regular hours or overtime type of pay. If partial regular hours need to be computed and paid in addition to this type of pay, the employee will ideally receive two separate paychecks.

Please refer to the following Sage Knowledgebase article to assist you in complying with HR 6201 Families First Coronavirus Response Act: How to enter employee sick pay for Emergency Paid Sick Leave due to COVID-19

  • Is information available showing how BusinessWorks will reduce the 941 liability by amounts paid to employees under the Emergency Paid Sick Leave act?

  • Unfortunately, not at this time. Sage is closely monitoring government reporting and working with Aatrix on tax reports and any necessary changes. As information becomes available, we will be sending out notifications and alerts to our customers through Sage City. To make sure you are set up to receive the alerts, please refer to our Knowledge Base (www.SageKB.com) article #95513 How can I get updates about product releases, alerts and notifications (95513)

  • Following your instructions to enter Emergency Paid Sick Leave, we have been manually zeroing out the Employer portion of Social Security and Medicare.  That is fine as long as they are on leave, but when they come back to work, BW calculates YTD and catches up with the missed amounts.  Normally this is a great feature but in this case it wipes out that manual adjustment.  Is there some way around this?

  • Yes.  In article #104058 “How to enter employee sick pay for Emergency Paid Sick Leave due to COVID-19” covers that there is a setting in PR, Taxes, Maintain Tax Tables.

    1. Go to PR, Taxes, Maintain Tax Tables.
    2. In the look up, select US for the Federal tables.
    3. Click Allowances, Limits and Rates....
    4. Deselect the 'Allow self adjusting option' for the appropriate taxes

    Since you mentioned you are zeroing out both Social Security (OASDI) and Medicare, in our instructions we only discuss zeroing out the OASDI. Please check with your accountant if you have special instructions for your company to also zero out Medicare too. There is a setting for that as well in Maintain Tax Tables. Please feel free to article #104058 for full instructions.

    Sincerely,

    Coleen

  • How will this effect future calculations to employees that are continuing Emergency Family Medical Leave (daycare).?