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

Let's start our article about creating 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 employers provide their employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19.

Create a Payroll Item for the COVID-19 Paid Sick Leave Sage 50

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 quarantined, the cap is $200 per day and a $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 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 the 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.

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Option 1 - How to create a task code

This step allows tracking the hours and wages for these payments. To create a 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 a 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 defined 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 pay

Go to PR >> Utilities >> Maintain Other Pays
Click New
Mention the desired id
Mention the description
Select the 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.

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To set up other pay as active on the employee:

Go to PR >> Employees >> Maintain employees for applicable employees
Select the 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. The Sage 50 live chat support helpdesk is available 24*7 to Consultant you with the advanced and latest information with complete satisfaction. All the technicians have 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 support experts.