Create a Payroll Item for the COVID-19 Paid Sick Leave

Let’s start our article about the “Create a Payroll Item for the COVID-19 Paid Sick Leave” in Sage accounting. Sage is equipped with advanced new features, and it is designed per the user’s needs.

Sage is giving the best class tools with all things organized in one place. The Family first coronavirus response Act (FFCRA /HR 6201) mentions that some of the employers provide their employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19.

Sick Pay

• Employer sick pay – for employees diagnosed with COVID 19, or with symptoms waiting for a diagnosis, 80 hours paid sick leave of 100% of pay to a cap of $511 per day and $5110 in the aggregate per employee
• Family member sick pay – for an employee caring or a quarantined, the cap is $200 per day and $2000 cap in the aggregate per employee.

FMLA

• Employees are eligible for 12 weeks of family leave if they are unable to work because of school closure or child care provider, initial 10 days are unpaid, and the remainder of the leave is paid. This act reiterated that an employee is only obligated to pay employees up to a cap of $200 per day and $10,000 for the per employee

If you are adjusting the company OASDI tax you will need to set the system to now allow for self-adjusting of the OASDI tax. To disable the self-adjusting follow below steps:

• Go to PR, >> Taxes >> Maintain tax table
• Select the US for the federal tables in the lookup
• Click on Allowances, Limit, and rates
• Deselect the “allow self-adjusting option” for the appropriate taxes

Once the self-adjusting feature is turned off for all the future clicks for all employees. A Payroll verification report is now required to run to make sure only the employees that have received the emergency, sick pay is displayed on the report. Payroll verification report can be done by PR >> Utilities >> Print Payroll Verification report.

Option 1 – How to create a task code

This step allows tracking the hours and wages for these payments. For creating task code follow the below steps:

• Open the payroll >> Utilities >> maintain task codes
• Click on New
• Enter the desired ID
• Enter the Desired description
• Now verify that the payroll expense account number and fields can contain valid General Ledger account number for which you would like to pay to post. If the field is blank ignore the complete section, and this entry is posted to the default accounts define in Utilities, Maintain Payroll Parameters
• Click on Save

Option 2 – Other Pays which allows a limit to set for the other pay but does not allow tracking of hours. Follow the steps to create a new other pay

• Go to PR >> Utilities >> Maintain Other Pays
• Click New
• Mention the desired id
• Mention the description
• Select Desired method such as variable, entered on the time card
• Select the category of Individuals
• Select Debit account
• Mention the desired limit
• Select the taxable status of the other pay

To set up other pay as active on the employee:

• Go to PR >> Employees >> Maintain employees for applicable employees
• Select other pays button
• Click next to the id
• Select the other pay created for this payment
• Click on accept
• Click on Ok
• Click on save

Above mentioned steps will surely help you to create a payroll item for the COVID-19 paid sick leave. Still, if you are stuck anywhere you need to contact the Sage Help desk immediately.

To get more detailed help get connected yourself to Sage 50. Helpdesk is available 24*7 to consultant you with the advanced and latest information with complete satisfaction. All the technicians are having years of experience and they are polite, professional, and quick problem resolvers. You can also email the Sage Help desk and you will be contacted by one of the Sage 50 Consultant Experts.