Dear Valued Clients,
As a reminder, the new Employee Paid Sick Leave and Emergency FMLA went into effect today, April 1st, for leave taken between April 1, 2020 and December 31, 2020. We have immediately implemented the necessary pay codes and tax credits into our system to facilitate this need.
We have put together a training video that we believe is well worth the 15 minutes in length (click video below). You can review the PowerPoint by finding the “FFCRA Training Video” download on our COVID-19 Resource Page.
A high-level description: 3 new pay codes are available in our system – EPSL Self, EPSL Other, and EFMLA.
- EPSL – Designed for an employee that is sick (EPSL-Self: pays at 100%) or caring of others (EPSL-Other: pays at 2/3 rate) – this covers ten days of sick pay for an employee (EPSL Self), or the first ten days of caring for others (EPSL Other). After ten days, EFMLA kicks in.
- EFMLA – Designed for caring of children for (1) Public Health Emergency Leave or (2) The employee is caring for a child if the school or place of care has been closed. (EFMLA: pays at 2/3 rate) The first ten days are unpaid or paid using a different pay (PTO, Vacation, EPSL)
If you are utilizing our online payroll platform, these pay codes have also been added into the pay grids for your use.
When a payroll is processed using these pays, the tax liability is automatically reduced, and the tax credits are applied directly within the payroll. For example, if a client runs $1,000 in gross wages under these codes, the 941 tax liability will be reduced by that $1,000. IF the tax liability is less than that $1,000 – then a remaining credit will appear, and you, the employer, will be able to file a request for an advance payment from the IRS. The IRS expects to begin processing these requests in April 2020. For more detail on the refundable tax credits and the procedures to receive payment of the advance credit, see “How to Claim the Credits.”
Again, for online clients, you can take advantage of this now. Non-online clients, you will need to submit the details of what needs to be paid out directly to your payroll specialist, when submitting payroll. Due to the recent law changes, we are experiencing an unprecedented amount of incoming calls, therefore if you are a non-online client, please be patient with our delayed responses.
We are working extra hard for you during this time, and we are glad to do so. We are in this with you, and as always, we appreciate your loyalty.
Kirsten Madland, Systems Operations Executive
Kevin Welch, CEO