I would like to thank everyone that attended FFCRA and Sage HRMS webinar on Friday April 3, 2020. A couple of items I would like to clarify for the Sage HRMS product:
- In Sage HRMS, the earning code can be set up as a flat or hourly. The code used for the earnings does not matter. However, the tax code (local tax code) must have the code CVIDSS and CVIDMD. For more information on setting up these local tax codes, see the Sage Knowledgebase article 104155.
- How to calculate 2/3 pay for COVID 19. You can manually calculate the amount or if you have a lot of employees, do an export, modify the export file and then import it back into Payroll.
The webinar this week (April 8th at 1:00 pm EST) will be a repeat, however we will be incorporating questions into the webinar from April 3rd webinar. In this weeks webinar, Mark Auchtung, the Manager of Research and Design at Sage, will be joining us for Questions and Answers.
To register for this webinar, click here, or go to https://get.sage.com/HRMSLearningSeries and register.
The questions and answers along with the handout is for guidance purposes only and is not intended as legal advice. We've made every effort to ensure the information is correct and up to date and recommend you do your own research and seek tax advice.
Without further ado, here is a list of Questions and Answers from April 3rd. Thank you for your patience while we were confirming some of the answers.
Could you please provide guidance as to why CVIDMD is setup with an employer portion, but CVIDSS is not?
For eligible employers, the employer portion of social security tax (OASDI) is not subject to these leave wages. That is why there is an employee rate but no employer rate for CVIDSS. For more information on the legislation, you can go to the IRS website or consult with a tax advisor. Here is a link to a FAQ (#10) on the IRS site https://www.irs.gov/newsroom/covid-19-related-tax-credits-general-information-faqs Question #10 talks about employer's share of Medicare tax on qualified leave wages and the note refers to social security.