Setting Up Employee Paid Leave in Patriot Software Due to COVID-19
If you are looking for other COVID-19 resources relating to the CARES Act for payroll tax relief, tax deferrals, the stimulus package, etc. , see our COVID-19 Resources page.
If you need to look up your payroll information to apply for the Small Business Association (SBA) Paycheck Protection Program (PPP), see the help article I Need Payroll Data for the SBA PPP.
This help article covers how to administer paid leave in Patriot’s payroll software and how to claim the employer tax credit for the employee paid leave.
Background: FFCRA Requirements
The Families First Coronavirus Response Act (FFCRA) was signed into law on March 18th, 2020 and will be effective April 1st, 2020 and is in effect until December 31, 2020. The benefits described in the act start on April 1st and end on December 31st, 2020. These leave benefits are not retroactive for time taken before April 1st. For more information, see our blog article FFCRA and Coronavirus Paid Sick Leave: Q&A For Employers.
Also see the one-page Department of Labor Poster for a summary of employee rights.
To summarize, the law requires employers with fewer than 500 employees provide up to 80 hours of employee paid leave for the following reasons:
- If the employee has to quarantine or isolate due to the coronavirus. This is paid at their regular rate.
- If they are caring for someone who must quarantine or isolate. This is paid at 2/3 their regular rate
- Up to an additional 10 weeks (not days) of emergency paid family medical leave if they must care for a child under 18, whose school or daycare is closed as a result of the coronavirus. This is also paid at of ⅔ their regular rate. Employers with fewer than 50 employees are eligible for an exemption from this requirement.
Setting Up Paid Sick Leave under FFCRA in Patriot Software
We have added three new hour types to use when you pay employees who are unable to work or need to take care of their family due to COVID-19. You must use these hour types when running a payroll for leave starting April 1, 2020 in order to take the employer payroll tax credit. Do not use any existing hour types you may have already created, or create more new ones. These hour types are ready to be used in payroll, and will use the correct rate calculation for both hourly and salaried employees.
- COVID 100 Sick: To be used when paying employees at their full regular rate due to their own personal need to quarantine or isolate.
- COVID ⅔ Sick: To be used when paying employees at ⅔ their regular rate if they are caring for someone who must quarantine or isolate.
- COVID Family Leave: To be used when caring for children as a result of school/daycare being closed.
Here’s what you need to know about these hour types:
- The employer portion of Social Security taxes are exempt on these payments. Employees will still have their normal income taxes withheld.
- Employer tax credits will automatically be calculated.
- If you are a Full Service Payroll customer, there is nothing you will need to do to claim the tax credit. The money that is paid to employees under these hour types will automatically be applied to the taxes owed on your quarterly Form 941.
- If you are a Basic Payroll customer, we will be building a Tax Credits report so you can see tax credit details.
- For more details, see our help article How to Claim Payroll Tax Credit for COVID-19 Paid Leave.
- Tracking Hour Balances: These hour types are already set up with a preset balance of hours for each employee. These hours will also be automatically added for any new employees. You can adjust this balance, if needed, for the 2 week equivalent for part time workers.
- COVID 100 Sick : There is a cap of 80 (2 weeks) hours per employee.
- COVID ⅔ Sick: There is a cap of 80 hours (2 weeks) per employee. NOTE: You may only pay employees a maximum of 80 hours between COVID 100 Sick and COVID 2/3 Sick. We will be adding more functionality soon to track maximums.
- COVID Family Leave: There is a cap of 400 hours (10 weeks) per employee.
You can check each employee’s balance by going to Payroll > Payroll Tasks > Manage Time Off > and select one of the three new hour types: COVID Sick 100, COVID Sick ⅔, or COVID Paid Fam. You can then see a list of your employees and their balances for that hour type. For more general help with the Manage Time Off feature, see Managing Time Off. Note that employees will see these paid leave balances on their pay stub. If you do not want to manage time off balances and remove them from appearing on pay stubs, see How Do I Remove COVID Paid Leave Hour Balances from Employee Pay Stubs?
- Frequently Used: These three hour types are set to be “frequently used,” by default so you’ll see them on the grid when you enter payroll. You can change this, if needed, by editing the hour types under Settings > Payroll Settings > Hours & Money Types. Toggle the “Frequently Used” switch in the list of Hour Types.
- Time Cards: If you use Patriot’s Time & Attendance software, these hour types are set up to appear on time cards.