On March 18th, President Trump signed the Families First Coronavirus Response Act into law (hereafter referred to as the act). This act gives employees paid sick and leave time in response to the COVID-19 virus. This act also provides for employer tax credits to pay for the additional paid sick and leave time. The Treasury Department has up to 15 days after the act was enacted to publish guidelines on how the act is to be implemented. This blog may be updated once those guidelines have been published.
Important Notes:
- JCT Bluebook Template
- Treasury, IRS and Labor announcement
- Provides the starting and ending date of qualified wages
- Families First Coronavirus Response Act: Questions and Answers
New Leave IDs
You may need New Leave IDs set up to track the time that your employees may need to take due to COVID-19.
- COVID-19
- COVID Sick
- COVID Other
- COVID Family
New Gross IDs
You may need New Gross IDs set up to track the pay that they will receive if they are out due to COVID-19.
- COVID-19
- COVID Sick
Note: If you do set up new GROSS IDs, you will also need to have a RATE ID. This can be done by copy from one gross id to another.
Note: It would be best practice to run these payouts through a separate Pay Master Id – to identify wages for the tax credit. You can run payroll reports by Pay ID.
What should I do now?
- Effective date of the new law is April 1, 2020.
- Familiarize yourself with the act.
- Create new Leave IDs if needed.
- Create new Gross IDs if needed.
