A new "Pay Type" in payroll listed as "COVD" to track employees who are outside with COVID or taking care of family due to COVID. I am being told I need to pay employees for this time out, but these hours are not supposed to accrue PTO, and it would be really nice to categorize it to track and pull easily when we go to ask for a refund on our tax return.
by: laura g. | over a year ago | Payroll
Comments
I don't disagree, Laura. We just use Pay Type "4" ("sick"), and make the Description "COVID." For exempt, salaried employees who don't track time, we just put grid lines in only for the days in question and treat them the same way I just described.
I'd personally prefer to see a Pay Type that was something like "PR Tax Deduction / Credit." Assuming that they will all follow the same basic payroll treatment rules going forward (doesn't count as time worked, preempts PTO, doesn't accrue PTO, need to track it for substantiation and PR tax returns later), this would mean we wouldn't need a different code every time the government approaches something this way.
I think we're getting at the same thing - that the COVID payroll legislation really did create a truly different Pay Type (basically, the employer acting as the payor agent of the government for what are essentially pass-through funds). Regardless of the cause or label (COVID or the next thing they decide to treat this way), the difference in the (quarter- or year-long) payroll treatment really merits its own Pay Type.
Bonus - for those who use Aatrix, it could potentially get integrated for reconciliation and correct treatment on returns automatically!
We set up a job to track COVID payments. Then set up cost codes to track the type of FFCRA. Can easily print reports.
However, it would be extremely helpful for this unusual payment to automatically tie in to Aatrix !
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