Dear Client,
This is a follow up to the e-mail we sent March 30 regarding the Sick Pay and Family Medical Leave programs that were implemented in the Families First Coronavirus Response Act (FFCRA). Below are some important items to be aware of to ensure you are complying with these new programs:
Tracking Time Properly
It is important you are tracking separately any hours for employees who are receiving Sick Pay or Family Medical Leave pay under these programs. Your payroll service provider will be asking you for this information separate from any regular hours worked.
If you prepare your own payroll using Quick Books, they have also created new payroll items you will need to setup in order to properly complete your payroll.
Documentation
The Department of Labor and the IRS will be expecting you to have proper record of who qualifies for Sick/Family Medical Leave pay, how they qualify and how much they were paid. This will be vitally important to substantiate the tax credits available for the wages and taxes paid for these employees.
The documentation should include the following:
1.
The employee’s name.
2.
The date or dates for which leave is requested.
3.
A statement of the COVID-19 related reason the employee is requesting leave and written support for such reason.
4.
A statement that the employee is unable to work, including by means of telework (remote work).
If the employee is ordered to quarantine or has decided to self-quarantine the documentation should also include the following:
1.
Name of the governmental entity ordering quarantine.
2.
Name of health care professional advising self-quarantine.
3.
If the person subject to quarantine or advised to self-quarantine is not the employee, that person’s name and relation to the employee.
If the employee is home taking care of a child due to a school or childcare facility closing, the documentation should include the following:
1.
Name and age of the child (children) to be cared for.
2.
Name of the school or facility that has closed.
3.
A statement representing no other person will be providing childcare during the period that the employee will be receiving family medical leave.
4.
If the child being cared for is over 14, a statement that special circumstances exist requiring the employee to provide care.
Clarification of Employee Social Security (FICA) Taxes
Originally it was believed that wages under these programs were not subject to the employee share of Social Security (FICA) tax. That is
not the case. Employers must withhold the employee half of the Social Security tax on these wages
If you have any questions, please feel free to contact us.
Sincerely,
Andaloro, Smith & Krueger, LLP
