BIAS Help CenterFinancial COVID-19How do I track EPSL & EFMLA in Payroll?

How do I track EPSL & EFMLA in Payroll?

Introduction

When working with COVID Payroll items there are two basic goals, cost tracking and getting the taxes right.  Both objectives will require some setup, and decision making based on the chosen tracking method mentioned above. 

The cost tracking for COVID in payroll is a matter of creating a wage distribution that points to a wage BARS and the related benefit BARS established for COVID tracking.  These distributions will be assigned to earning items and can be customized to employee’s distributions. Separate lines can be used if it is desired for all costs to go to different BARS codes.   

Adding new COVID earning items will be the critical part for tax compliance.  Those who use the FFCRA, EPSL or EFMLA will need to have these new items added to their employee profile, and you WILL need to do some manual calculation.  Why?  Because these earning items are exempt from FICA.  FWT and Medicare still apply! 

Finally, regarding personnel policies and interpretation of these regulations CONSULT YOUR HR AND ATTORNEY FOR ADVICE AND GUIDANCE.  This article instructs the mechanics of COVID payroll, not what qualifies or how it affects your policies. 

 

Workflow

 Go to Advanced Payroll > Payroll Setup 

  1. Click the Distributions tab. 
  2. Click Add New to add COVID wage distribution(s) as desired 
  3. Enter the name of the distribution in Distribution Name  
  4. Check the Wages checkbox. 

  1. Double-click the BAS cell for the BARS distribution.  This will go to the Chart of Accounts.  Ensure that the wage BARS exist and that the related benefit BARS exist and matches your current benefit setup.  Distributions can be used for your regular employees if desired. 

  1. Highlight the BARS code
  2. Click Select and it will be added for the new distribution. 

Click Save

The distributions can now be seen in the timecards or may be modified in an employee’s profile to use the COVID codes for the duration of the emergency. 

IF WORKERS HAVE COVID EXPOSURE, follow these steps:

  1. Click the Accruals tab in Payroll Setup 
  2. Click Add New 
  3. Enter EFMLA as the Accrual 

  1. Enter Earning Type as Leave Accrual. 
  2. Enter Calendar Year for On 
  3. Click Save 

  1. A warning box will appear. Click OK

Leave the Accruals tab to enter earnings. 

Enter Earnings in Earnings tab

  1. Click the Earnings tab
  2. Click Add New 
  3. Enter EPSL as the Item 
  4. Select Wage as the Earning Type (THIS ONE IS NOT AN ACCRUAL) 
  5. Check the Inc Hrs box
  6. Check the On Rate box
  7. Enter 1.0000 in Factor  
  8. Check the Hrly box. 
  9. In the Print cell, enter a number that set the order that the wage item to show. 
  10. Uncheck the L&I box. 
  11. Uncheck the Unemp Box. 
  12. Make sure the Ret cell is set to Both 
  13. Click Save 

Enter Accruals in Earnings tab

  1. Click Add New
  2. Enter EFMLA Earned as the Item 
  3. Select Leave Accrual as the Earning Type 
  4. Select EFMLA as the Accrual Type 
  5. Set Earn/Use to Earn 
  6. Don’t check the On RateFactor, or Hrly boxes.  Enter custom values in your employee’s profile to determine amounts to pay. Consult with HR, ATTORNEY, COUNCIL/MAYOR for what to pay. 
  7. In the Print cell, enter a number that set the order that the accrual item to show. 
  8. Uncheck the L&I box
  9. Uncheck the Unemployment box  
  10. DRS has not yet made clear if EFMLA payments are reportable compensation.  The WAC is here: https://apps.leg.wa.gov/WAC/default.aspx?cite=415-108-465.  Consult with DRS, HR, ATTY, for what to do. 
  11. Click Save 

  1. Click Add New  
  2. Enter EFMLA Used as the Item 
  3. Select Leave Accrual as the Earning Type 
  4. Check Inc Hrs
  5. Select EFMLA as the Accrual Type 
  6. Set Earn/Use to Use 
  7. Don’t check the On RateFactor, or Hrly boxes.  Enter custom values in your employee’s profile to determine amounts to pay Consult with HR, ATTORNEY, COUNCIL/MAYOR for what to pay.
  8. In the Print cell, enter a number that set the order that the accrual item to show. 
  9. Uncheck the L&I box
  10. Uncheck the Unemployment box 
  11. DRS has not yet made clear if EFMLA payments are reportable compensation.  The WAC is here: https://apps.leg.wa.gov/WAC/default.aspx?cite=415-108-465.  Consult with DRS, HR, ATTY, for what to do. 
  12. Click Save 

  1. Click Add New  
  2. Enter EFMLA Adj as the Item 
  3. Select Leave Accrual as the Earning Type 
  4. Uncheck Inc Hrs
  5. Select EFMLA as the Accrual Type 
  6. Set Earn/Use to Earn 
  7. Don’t check the On RateFactor, or Hrly boxes.  Enter custom values in the employee’s profile to determine amounts to pay Consult with HR, ATTORNEY, COUNCIL/MAYOR for what to pay.
  8. In the Print cell, enter a number that set the order that the accrual item to show. 
  9. Uncheck the L&I and Unemployment Boxes for each line. 
  10. DRS has not yet made clear if EFMLA payments are reportable compensation.  The WAC is here: https://apps.leg.wa.gov/WAC/default.aspx?cite=415-108-465.  Consult with DRS, HR, ATTY, for what to do. 
  11. Click Save 

Return to the Accruals tab

  1. Click on the Accruals tab 
  2. Click Edit 

  1. Enter EFMLA Earned in the Pay Item cell 
  2. Enter EFMLA Used in the For Salary cell 
  3. Set Factor to 1.0 
  4. Enter the Maximum for the total number of work hours within 12 weeks to create a cap for the accrual 
  5. Set Exceed to No 
  6. Uncheck Roll so the accrual does not roll over at the end of the year 
  7. Uncheck Payout because the accrual is not eligible for a cash out 
  8. Leave Active checked since this is an active accrual 
  9. In the Step setup, click Add New  
  10. Enter the Step (2) you plan to use.   Ex: part-time workers, full-time workers 
  11. Leave Hours, Cap, and Percent blank to enter custom values in employee’s profile. 
  12. Click Save

Employee Setup

Go to Advanced Payroll > Payroll Control Center > Employees tab 

  1. Highlight Employee and click View 

  1. Click the Pay Items tab 
  2. Click Add New 
  3. Select EPSL under Item  
  4. Set the Distribution to the COVID BARS line. 
  5. Check the Override box 
  6. Enter the pay rate in Hourly.  The amount will depend on the employee's situation Consult with HR, Attorney, Mayor, etc. 
  7. Click Save 

  1. Click the Accruals tab 

ONLY ADD the EFMLA accrual if the employee is going to use it! 

  1. Click Add New 
  2. Select EFMLA under Item 
  3. Select the Step appropriate to the employee. 
  4. Enter hours in Emp Alternate for custom accrual hours. 
  5. Click Save 

  1. Click the Pay Items tab 
  2. Click Add New
  3. Select EFMLA Earned under Item 
  4. Change the Distribution to the COVID BARS line
  5. Check the Override checkbox
  6. Click Save

  1. Click Add New
  2. Select EFMLA Earned under Item 
  3. Change the Distribution to the COVID BARS line
  4. Check the Override checkbox
  5. Enter the pay rate in Hourly.  The amount will depend on the employee's situation. Consult with HR, Attorney, Mayor, etc. 
  6. Click Save

  1. Click Add New
  2. Select EFMLA Adj under Item 
  3. Change the Distribution to the COVID BARS line
  4. Check the Override checkbox
  5. Click Save

For additional employees, repeat the Employee Setup steps as needed.

Entering EPSL & EFMLA in the paycard

For each employee that is using EPSL or EFMLA: 

  1. Select Employee
  2. Click Edit  

  1. Click Edit in the Time & Earnings tab 
  2. Click the Hours cell for the EPSL and/or EFMLA Used earning items. 
  3. Enter the hours the employee is using for those earning items. 
  4. Note the Wage cell amounts. 

  1. Note the Wage cell amounts. 

If this is Salary employee, calculate the dollar amount of salary that is attributed to ESLP or EFMLA using the EPSL or EFMLA hours as a percentage of overall hours.

  1. Go to the Adjustments tab 
  2. Multiply the ESPL and/or EFMLA gross wage amount by 6.2% (.062)
  3. Under the MISC section enter the value calculated in the Soc Sec Adj cell as a NEGATIVE NUMBERThis will REDUCE the FICA amount due
  4. Verify that the Owner SS DED now has a reduced amount due.
  5. MAKE NO CHANGES TO MEDICARE OR FED DEDUCTION
  6. Click Save

For additional employees, repeat the Entering EPSL & EFMLA in payroll steps as needed.

DRS Eligibility is not known at this time for EPSL or EFMLA wages. 

Congratulations, you are done!

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