In this article, we went over the various credits and deferrals offered as part of the "Families First Coronavirus Response Act (FFCRA)", what they mean, how they're calculated, and how to determine if you or your employees are qualified for any of them.
IMPORTANT! Please note that these should only be used with the advisement of a CPA or your accountant. Fingercheck cannot advise on whether or not your company or employees qualify for credits.
Now, it's imperative to know how to pay the employees under these rules, in order to actually get the Tax Credits and/or Deferrals.
To accommodate this, Fingercheck now offers special Earning Codes, Tax Codes, and Deduction Codes, which handle all of the related calculations automatically, so you don't have to worry!
The following FFCRA-specific Earning Codes have been added to Fingercheck:
- FFCHLDCARE - FFCRA Child Care Credit
- FFSICK - FFCRA SICK
- FFSICKOT - FFCRA SICK OTHER
If an employee needs to be paid using these FFCRA-specific codes, you can do so while editing paychecks in Step 4 of running Payroll. Just change the Earning Code that's automatically generated by the system to the FFCRA-specific Earning Code you need.
In your completed Payroll, you should see the appropriate "FFCRA Credit" appear in the taxes. Here is a comparison between how a $500 check looks normally versus with one of the FFCRA Earning Codes. Note the difference in Employer Taxes.
Additionally, you can use an Absence Policy to apply the Earning Code you need over a long stretch of time, and/or across multiple employees. Click here to learn how to create Absence Policies.
For this, just make sure to set the "Division Earning" field to the appropriate Earning Code.
Then, click here to learn how to apply Absences to your employees.
The following FFCRA-specific Tax Codes have been added to Fingercheck, as well as to all employees' profiles:
- FFSCR - FFCRA Sick Credit
- FFSOTCR - FFCRA Sick Other Credit
- FFCHLDCARE - FFCRA Child Care Credit
You do not need to do any setup to enable these, and they will be calculated automatically when necessary. It is shown here for reference.
Finally, there are new Deduction Codes available. These are necessary to set up only if your employees receive Health Insurance from you, as the FFCRA Tax Credits take those Health Insurance amounts into account.
These Deductions have not been automatically added to your Fingercheck company, since not all employers offer Health Insurance.
If you are a company that offers Health Insurance to your employees, and those employees qualify for any of the FFCRA Tax Credits, reach out to our Support line, using the information at the bottom of this article, and a live Support agent will be happy to set one up for you.
Employee Retention Credit
There is a Tax Code that has not been added to all employees' profiles since not all employers qualify for it.
This is the Tax Code for the Employee Retention Credit.
Only if your company qualifies for this credit, you'll need to add this Tax Code to all of your employees.
Here is a walk-through on how to add this code to an employee:
- From the Fingercheck Menu on the left side of your screen, go to Employees. Click on the employee's name to open up their record.
- Go to the section Payroll > Taxes.
- On the following screen, click the Actions icon at the upper-right. In the menu that drops down, choose "Add Tax Codes".
- A pop-up will appear with a list of Tax Codes. Look for the tax code "FFRETCR - FFCRA Employee Retention Credit" and add it by clicking the checkbox to the left of it, then click the green Add button.
Social Security Employer Tax Deferral
The Social Security Employer Tax Deferral is also available in Fingercheck.
If you wish to take advantage of the Social Security Employer Tax Deferral, reach out to our Support line, using the information at the bottom of this article, and a live Support agent will be happy to assist you with doing so.
Frequently Asked Questions
When I change Earning Codes, the hours/amounts disappear from my view. How do I get those back?
By default, these new codes are hidden from the grid in Step 4 to avoid cluttering up the page. This is only visual, and will not affect the outcome of your employees' checks.
Even so, if you wish to un-hide those columns of the grid, you can do so by:
- From the Fingercheck Menu on the left side of your screen, go to Setup. On the screen that follows, go to Payroll > Earning Codes.
- Find the Earning Code you want to unhide, and click its name to edit it.
- On the following screen, look for the options "Hide Hours on Payroll Grid" and "Hide Amount on Payroll Grid". Uncheck them to turn off the option.
- Scroll to the bottom of the screen and click the green Save button.
Now, these amounts will have their own columns on the grid in Step 4.
I am getting the error "[name] has exceeded the annual limit of $X for FFCHLDCARE/FFSICK/FFSICKOT by $Y. The system automatically reduced the amount to the annual limit, please record the excess amount of $Y as a different earning code.". I need to pay my employee more than that! What do I do?
This error occurs because there are annual caps built into the FFCRA Earning Codes. If you hit this limit, you will need to go back to edit the employee's check, and split up the remaining amount back into your normal Earning Code. Here's how to do that:
- Return to Step 4 of the Payroll Process. You can do this by clicking the "Previous" button on Step 5, or you can return to the Payroll Dashboard and click the green "Resume Payroll" button.
- Find the employee who was mentioned in the error, and edit their check.
- In the Edit Check screen, add a line by clicking the blue Add button.
- Set the first field to "RG - Regular" or "SA - Salary", whichever your employee's payments normally appear under.
- Set the field for Amount to the excess amount that was mentioned in the previous error.
- Next, edit the line for the FFCRA Earning Code, and subtract the excess amount from it.
- Save, and continue with the Payroll process as normal.
In the example shown in the error above, we attempted to pay Mr. Gates $11000, which exceeds the limit for FFCHLDCARE by $1000.
This is how his Edit Check screen should look after it's corrected.
Lastly, if ever you (or your employer) are in need of technical assistance, you can contact our Support team at 1-800-610-9501, or, use our in-app messaging feature by logging into our secure site and initiating a conversation.
To learn more about our cost-effective and user-friendly cloud-based time and attendance software, check out our website at Fingercheck.com. Interested in our services? Sign up for a 30-day free trial and get started with FingerCheck today.