FFCRA -The Families First Coronavirus Response Act (FFCRA or Act) requires certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. The Department of Labor’s (Department) Wage and Hour Division (WHD) administers and enforces the new law’s paid leave requirements. These provisions will apply from April 2, 2020 through December 31, 2020.
CARES Act - The U.S. federal government signed into law a $2 trillion relief act aimed at providing relief to individuals, businesses, and government organizations. The Paycheck Protection Program/Flexibly Act established by the CARES Act is implemented by the Small Business Administration with support from the Department of the Treasury. This program provides small businesses with funds to pay up to 24 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
Standard Report: Taxes Summary & Taxes Summary Lite – FFCRA Tax Credits
The standard Avionté reports – Taxes Summary & Taxes Summary Lite have been updated to show FFCRA Tax Credits.
The amount of the credit is the sum of two components. First, the amount of any required qualified leave wages paid, which excludes any supplemental payments made or permitted by the employer. Second, the employer’s portion of the Medicare tax (currently 1.45% of wages) associated with the qualified leave wages. In addition, “Qualified Health Plan Expenses” can be considered for credit purposes, however, these are not included with this report. Review your individual employer-provided healthcare coverage to determine if qualified for additional credits.
Taxes Summary Report
The new FFCRA Tax Credits fields will appear above the supplier tax totals after the report run completed -
FFCRA Sick Leave Wages + FFCRA Emergency FMLA Wages + FFCRA MED ER Credit (1.45% of qualified wages) + FFCRA FICA ER Credit (6.2% of Total FFCRA Wages Paid) = Total FFCRA Tax Credit
Standard AQ: CARES ACT PPP Loan FTE Count
One condition to getting your Paycheck Protection Program loan completely forgiven is proving that you maintained the same number of FTEs (full-time equivalents) during the 24-week PPP period as before COVID-19.
Your FTE figure will not necessarily be the same as the number of actual people you had on payroll, especially if you had turnover and part-time employees. Using the FTE measurement will give you a more accurate view of your labor force. Avionté has released a standard AQ to assist with the FTE PPP Loan measurement - CARES ACT PPP Loan FTE Count AQ.
Admin Tools > System > Report > CARES ACT PPP Loan FTE Count AQ
Admin Tools > System > Advance Query > CARES ACT PPP Loan FTE Count AQ
The completed report run will display the Employee, Branch, Compensation, Total/Average Hours & Average FTE calculation to determine FTE employees for PPL Loan Forgiveness qualifications. The report can run on three different date types: Accounting Period, Check Date & Week Worked.
Refer to the Avionté Knowledge Base for our library of resources of updated information regarding COVID-19. Also, each Monday the Compliance - Tip of the Week is sent to clients who have signed up for the weekly newsletter. Sign-up here for weekly Compliance updates – Tip of the Week Newsletter