Compliance
What does FFCRA stand for?
What is Families First Coronavirus Response Act
Who (type of employer) is covered under the FFCRA?
What is any company under 500 ees and government entities regardless of size
Which garnishments are on hold and until when?
What is student loan garnishments and 10/1/2020. Paycom's full service garnishments will automatically update the system to hold the student loan garnishments
What is Coronavirus Aid, Relief, and Economic Security Act
Do employees have to use available sick time or personal time or vacation time for the initial 10 days prior to receiving the paid sick leave, under the Public Health Emergency Paid sick leave?
What is no. Employers cannot force employees to use this, as it could be 10 days unpaid
What is the daily limit ($ amount) to be paid out for an employee who is sick?
What is $511 per day.
Normal FMLA is unpaid, but under the FFCRA, employees who are on sick leave because they are sick can receive their full pay, up to $511 per day, or $5110 total.
This calcuation is done on the backend of our system
What is the threshold of minimum days and hours worked in order for an employee to be eligible for Public Health Emergency Leave?
What is Public health emergency leave is available to all employees who have worked for their employer for at least 30 days, regardless of how many hours they have worked
How do clients add the paid sick leave earnings in the system?
What is the client doesn't need to do anything. Paycom automatically added the paid sick leave earnings to all clients with 500 or less employees
If elected, what tax is deferred?
What is the employer side of Social Security tax
Do the 10 days prior to the public health emergency paid leave have to be unpaid?
How is sick leave calculated for an employee who is taking care of a child due to childcare being closed and what is the daily max to be paid out?
What is Leave taken to care for children whose school is closed is paid at two-thirds the employee's regular rate of pay, with a maximum of $200 per day or $10,000 total
Who is eligible for CARES Act?
What is any employer without a business loan
If the employer has processed a payroll since this was assigned into law, can they receive a credit back on those employer side social security taxes that were drafted?
What is yes. We can do this on all check dates with the date of 3/27 on. We will determine how much we drafted and the client will see a credit on their next payroll.
How will clients receive their 941 tax credits under the Families First Coronavirus Response Act (FFCRA)?
What is the system will calculate the total necessary payroll tax credit on the current transaction and apply it to the Cash Requirement. This will reduce the client's liability, but will be visible for them to see the benefit. Also, if the amount of the credit exceeds the total available 941 tax withholdings, a COVID-19 Excess Credit will appear.
What is the 6th situation added to FMLA?
What is the Public Health Emergency Paid sick leave
What is the FMLA Expansion and how is it calculated/paid out?
What is this is referred to in the Coronavirus Response Act as public health emergency leave. The measure established entitlement to public health emergency leave by amending Section 102(a)(1) of the FMLA to add this as a sixth reason among the list of situations that employees must be granted leave by employers upon request, although the other five situations are unpaid. This added a paid-leave requirement related to COVID 19.
After 10 days of unpaid leave, the period of paid leave would follow. The period of paid public health emergency leave is for up to the remainder of the period of 12 workweeks of leave generally available for employees who qualify under the FMLA.
Which department has the authority to exempt companies under 50 ees for FFCRA?
What is the Secretary of Labor, or Labor Department
What are the 2 additional reports relating to FFCRA (part time employees)?
2. A report that calculates rate to be paid for part time employees if using multiple pay rates (ie, rate 1 and rate 2, rates by allocation, etc.)
What is yes. The client can opt out at any time, but still owe what they had deferred at the 50/50% (50% of the deferred taxes due on 12/31/2021 and the remainder due on 12/31/2022
How much money is going toward this Act?
100 billion dollars, targeted to help those affected by COVID 19.
Also helps with
•Free coronavirus testing.
•Paid emergency leave.
•Enhanced unemployment insurance.
•Additional funding for nutritional programs.
•Protections for health care workers and employees responsible for cleaning at-risk places.
•Additional federal funds for Medicaid.
What is the difference between the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act?
What is
The FFCRA includes both the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act and applies to private organizations with fewer than 500 employees. These acts implement two new paid leave requirements. Additionally, tax credits for all wages paid in accordance with the acts are available to employers.
The CARES act is available to all employers and allows them to elect to delay payment of federal employer payroll taxes. Employers may elect to delay the deposit and payment of employer Social Security taxes (6.2%) effective immediately through December 31st, 2020. Under the new law, the payment of 50% of the tax will be due on December 31st, 2021, with the balance due on December 31st, 2022.
The employer side social security tax deferral under the CARES Act is for all wages whereas the employer side social security tax exemption for the FFCRA is only for the 3 Sick Leave earnings set up in Paycom
What are the 6 situations related to Coronavirus for which an employee is eligible for paid sick leave?
What is
»The employee is subject to a federal, state or local quarantine or isolation order related to COVID-19;
»The employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19;
»The employee is experiencing symptoms of COVID-19 and seeking medical diagnosis;
»The employee is caring for an individual who is subject to a federal, state or local quarantine order, or the individual has been advised to self-quarantine due to concerns related to COVID-19;
»The employee is caring for the employee's son or daughter, if the child's school or child care facility has been closed or the child's care provider is unavailable due to COVID-19 precautions; or
The employee is experiencing any other substantially similar condition specified by Health and Human Services in consultation with the Department of the Treasury and the Department of Labor
How does the 2/3's rate of pay calculate for paid sick leave - family dependent?
The system calculates this by taking 2/3 of their rate of pay but it's calculated in the payroll, not on a timecard. It's on a timecard, but it calculates the 2/3 once it's in the payroll grid.
How do I map the CARES Tax deferrals on my GL?
What is in the past, the Social Security Tax would be an expense that's offset by an asset (cash). Now that they can defer, companies are going to need to be able to reconcile back to the period in which this tax occurred, but since they are deferring the payment, it no longer is part of their cash asset that is going out as an expense.
There has been a new liability account created that will automatically show up in GLC when the client opts in to defer. It's called “COVID Tax Deferment". The client will need to map this on their GL (it will just show up as excluded). They'll set this up wherever on their map they want it to show, but it is ultimately an employer liability because they still have to pay it in the future. This is an increase to liabilities, but not a decrease to cash (because that part hasn't happened yet).
In the future, they'll be able to run these GL reports (or look at other payroll reports) to determine how much went into this liability, so they know what 50% is to pay at the end of 2021 and 50% for 2022.
What are 2 other benefits of the $100 billion Act?
More aid for WIC and SNAP
Up to 12 weeks
Waives co-pays and insurance for COVID 19 testing
Can exclude health care workers
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