This is a long and detailed topic, and also requires checking for the latest information available from the Department of Labor.

All information here is the best we have, as of the date this document was prepared.

•There is a new FFCRA PTO option, a dollar entry field, where you can enter the appropriate dollar amount you are paying for the payroll period. FFCRA PTO is a new method of pay as part of the 2020 Coronoavirus (C-19) legislation.

•The implementation of the new laws are subject to change at any time.

•The best known source for (relatively) easy to read information regarding FFCRA PTO is the Department of Labor (DOL) web site.

•The DOL has posted several informative documents, especially their Questions and Answers documents.

•Be certain to read and understand the eligibility rules for each type of FFCRA PTO, before paying any FFRCA PTO.

Setup Screen

•In one of the unused Adjustment to Income Fields, select FFCRA PTO as one of the Adjustments to Income 'Types'.

•This enables a space on the Paycheck entry screen to enter the amount of FFCRA PTO being paid.

•If you have no unused Income Adjustments, Our Professional Edition has a total of seven Income Adjustments you can use, two more than the Classic and MICR Editions.

What you will need to know to be able to calculate FFCRA PTO

•Average Regular Rate of Pay - (ARRP)

•The total of their regular pay for the specified time period prior to beginning the FFCRA PTO, divided by the hours worked in the specified time period, but not less than the current highest minimum wage rate rate for your locality.

•The DOL web site has a good explanation showing what is to be included as "regular pay", and how to perform the calculation.

•It is important to use the proper rate as you will only be reimbursed based on the proper rate, even if you were to use a higher rate on the paychecks.

•Print an Employee History report, using the Date Range option to select the needed time frame.

•At the bottom of the report, on the last line, labeled TOTALS, divide the REG PAY figure by the TOT HRS figure to get the proper pay rate for FFCRA PTO.

•If you have salaried employees, you should use 40 hours per week as for the hours.

•Make certain the calculated rate is at least your current highest minimum wage for your locality.

•Which type of FFCRA Paid Leave / Which calculation limits for each paycheck.

•There are three different types of FFCRA PTO.

•In the DOL instructions, there are six qualifying reasons for FFCRA PTO, numbered 1 through 6.

•For the purposes of this document, we will refer to the three resulting calculations as:

•Emergency Paid Leave - Employee

•DOL Qualifying Reasons 1, 2, and 3.

•The employee is personally affected by the C-19 illness, quarantine, or isolation order.

•Up to two weeks, 80 hours total.

•Uses full ARRP as the hourly rate.

•Maximum per day is $511.

•Maximum over the two week period is $5,110.

•Emergency Paid Leave - Family Member

•DOL Qualifying Reasons 4 and 6.

•Employee is caring for a family member affected by C-19 illness, quarantine, or isolation order.

•Up to two weeks, 80 hours total.

•Uses 2/3 ARRP as the hourly rate.

•Maximum per day is $200.

•Maximum over the two week period is $2,000.

•Expanded Family and Medical Leave - Child

•DOL Qualifying Reason 5.

•Employee is caring for a child under age 18 whose school or place of care is unavailable due to C-19.

•Up to ten weeks (after two weeks of paid sick leave).

•Uses 2/3 ARRP as the hourly rate.

•Maximum per day is $200.

•Maximum over the ten week period is $10,000 for the Expanded FML portion

•Maximum for the entire 12 weeks, two weeks of PSL then 10 weeks of EFML, is $12,000.

Paycheck Entry Screen

•When paying allowed FFCRA PTO, enter the dollar amount you calculate (see the above for basic information) into the FFCRA PTO box.

•FFCRA  PTO is NOT an hour entry field, you must calculate the total FFCRA dollar amount for the paycheck, and enter the dollar amount.

•The FFCRA PTO amount you enter is added to Gross Pay, and is subject to most tax and income adjustment calculations.

•Currently known exceptions to taxation on FFCRA PTO

•Excluded from the calculation of Employer Social Security contribution.

•Excluded from deductions or taxes based on hours worked (setup as Hourly 1 and/or Hourly 2 on the Paycheck Deduction Screen, and with the limit set as 'Hours' on the Employer Paid Taxes screen).

•An example is the Washington State Labor and Industries calculations, which are based only on hours worked.

•If you have an item which should not be calculated using the FFCRA PTO amount, you may have to manually edit the paycheck deduction or income adjustment.

•Consult with your plan administrators, such as your Retirement plan, Section 125 and/or Cafeteria Plan, and Worker's Compensation insurer.

•It is expected employee contributions to their Retirement, Section 125, or Cafeteria Plan will include FFCRA PTO as wages, but there may be plan specific exceptions.

•It is also expected any employer contribution or match to these plans will also include FFCRA PTO as wages, but again, check with your plan administrators.

Reports

•The reporting requirements are not all worked out, so check our web site, and read our email announcements, for the latest news.

•IRS Form 7200 is already available for download, and likely online fill in PDF format, from the IRS web site.

•Form 7200 is used if your tax liability is not enough to 'cover' your FFCRA credits, and you need to ask for a reimbursement check.

•We are not planning on printing Form 7200, since it can be filled out and printed from the IRS web site, and since we will not have access to all needed information for this particular form.

•Pay Stubs

•FFCRA PTO is shown in the Department 1 summary box.

•Payroll Check Listing and Employee History

•FFCRA PTO is shown in the Income adjustment area, and the totals by department.

•Payroll Ledger

•FFCRA PTO is includes as part of Gross Pay.

•Payroll Tax Summary

•FFCRA PTO is excluded from the Employer Federal Social Security liability.

•FFCRA PTO is excluded from the Employer Taxes in the Totals box.

•FFCRA PTO included in the Total Pay in the Paychecks box.

•FFCRA PTO included in the calculations in the Employer Paid Taxes box.

•The one exception is for the Hourly calculations, FFCRA PTO is not included.

•Quarterly Listing

•FFCRA PTO is included as part of Gross Pay, State Taxable Wages, SUTA Taxable Wages, and Total Pay.

•Workers Compensation

•FFCRA PTO is shown separately in an Income Adjustment column.

•Whether or not your state includes FFCRA PTO as part of your WC premium calculation is something to make certain of, before reporting and paying your premium.

•As of this writing

•CA is reviewing the situation, but has made no change.

•WA and WI do NOT include FFCRA PTO for WC calculations.

•FFCRA Report

•Given to employees in addition to their W2 forms.