The FFCRA rules go into effect on April 1, 2020. Setting up Shelby Financials Payroll to track time off hours subject to the act’s provisions is easier than understanding all of the act’s provisions.

See the Department of Labor’s site for additional information
See this IRS posting for employer reimbursements

Approach: Add a new Compensation type named, FFCRA.
Then add distribution types as needed. Use suggested descriptions as follows:
1. FFCRA Paid Sick Leave Regular Pay Rate
2. FFCRA Paid Sick Leave 2/3 Regular Pay Rate
3. FFCRA Paid Expanded Family & Medical Leave
Use Payrolls’ Employee Earnings report to see total compensation for each FFCRA distribution type used.

Step-by-Step Instructions

12 thoughts on “The Families First Coronavirus Response Act: Tracking Time Off Obligations”

  1. What if we are paying employees the same as long as the funds allow. Do I still need to track it this way? And what about the loans that the banks are giving to cover a portion of the salaries is there a special way to track this if we receive the loan?

  2. Maxine, yes there are ways to track the disbursements of funds received as a loan. Dave Heston and I are trying to develop a blog post to provide some help. Still gathering information on some of the many variables involved.
    As far as tracking the time off under the FFCRA guidelines, I think it would be helpful to follow the approach provided in the post. It is simple to add the Compensation and Distributions, Plus, reporting is easy.

  3. Thank you for the information.
    If we made this payments not as a Compensation Line but as a Distribution of a Compensation, which will be the best way to fix it?

  4. Create a manual check to “back out” the original payment
    Create a manual check using the corrected Compensation Type and corrected Distribution type

    If you need assistance with these steps, just call Support and someone will walk you through the proceedure.

  5. We did this procedure for adding FFCRA pay for a couple employees. When I went to file the 941 today for the 3rd quarter, it dawned on me as I was completing the form that one of the people we paid it to was a pastor, and pastors/ministers are ineligible for the credit on the 941 because they pay self employment tax. Should we still bother to code ministers’ pay as FFCRA in ShelbyNext? Do I need to fix his pay that’s currently coded at FFCRA?

  6. If I understand correctly, the Department of Labor wants to track the salary amounts paid to employees during the time they were off work because of COVID. You are correct in noting that clergy are exempt from SS and Medicare, but they are not exempt from paying taxes on their salary. So, I believe the amount of taxable salary for clergy paid during their COVID sick leave should be reported in Form W-2 2020 Box 14.

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