New regulations now require COVID salary payments to be reported in box 14 on employee’s Form W-2 2020.

If your organization has issued COVID salary payments, as defined by the Department of Labor, then you will need to report those payments using the new Form W-2 2020 in box 14.

Click Here for the DOL’s instructions.

If you use Shelby Financials’ Payroll application, then follow the instructions provided by the link below to record COVID payments. Taking action now will save you time when you go to distribute Form W-2 2020.

Instructions for Tracking Families First Coronavirus Response Act’s Paid Salaries

If you outsource your Payroll, then you will need to let your Payroll service know which employees, dates, lengths of time, and which categories paid salaries are COVID related. (See DOL’s Instructions for more information.)

6 thoughts on “Tracking Families First Coronavirus Response Act’s Paid Salaries”

  1. How do you suggest we correct for all the Emerg Paid Sick Leave and Emerg FMLA payments already made in 2020? I have separate codes in my payroll already, but obviously these won’t be picked up by ShelbyNext as the specific new distributions required under FFCRA classification.

    I thought of running a separate payroll where we basically wash the accounts, but I’m assuming a zero check won’t “fly”.

    Thank you!!

  2. Lynn:
    It should not be hard to correct your previous entries.
    First, follow the instruction in the post to setup a Compensation and the 3 Distribution types.

    Then in Payroll create a manual check, reversing the original Compensation/Distribution on the original payment for the number of hours/days affected.
    On the same manual check add the new COVID Compensation with proper Distribution type, using the same hours/days paid.

    Hope this helps.

  3. Yes, that helps. I was concerned that ShelbyNext would not allow a zero check. We are new to Next and that was true in v5. We paid several employees under the Act who are no longer employed here.

  4. Our church received a PPP loan and has been forgiven the amount applied to pay employees. Does this amount need to be reported in box 14 for each employee that received funds from the loan?

    We now have issued FFCRA sick leave payments during the month of Dec. Will we receive credit for those payments that are reported on the 4thQ 941 if we follow the directions Shelby has provided for reporting? Also they will be entered on box 14 on the W2.

    Thanks for your help.

  5. Make sure that you have created a compensation for FFCRA per instructions in Blog which includes Box 14 setting.

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