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

Parents
  • 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?

  • in reply to Dan G

    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

  • in reply to Coleen Graber

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

Reply Children
  • in reply to SKP-LAND

    If you change the setting, it does apply to future calculations as well.  The only issue is - the setting effects all payroll calculations.  You either have the setting on or your have the setting off - no option for special calculations or only for certain people or payroll, etc....  Once you change the setting, it should remain that way until the end of December.  If you change it....the next time you do payroll, it will try to catch up on taxes that you purposely zeroed out.  When you start the new year in January, determine if the setting still applies for your company for the new payroll year.

    Sincerely,

    Coleen

  • in reply to Coleen Graber

    Even Manual Check Calculations?  The people that are still out are still exempt from OASDI.