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In this article you will learn how to pay your employees paid leave if your employee has been affected by COVID-19 with QuickBooks. To know more contact, QuickBooks Support.

Step 1: Determining the pay leave type and hourly rate

You first need to figure out what pay leave type they fall under and their hourly rate before you can give your employees this sick leave.

Type of pay leave

There are three different types of paid leave under FFCRA.

  1. In case of, Employee National Paid Sick Leave, you employees is to be paid if he is sick and under quarantine with COVID-19.
  2. In case of, Family National Paid Sick Leave, you employees is to be paid if he is taking care of a family member who is sick or impacted with COVID-19.
  3. In case of, Family Medical Leave Act Expansion Paid Leave, your employee is granted leave under the Family Medical Leave Act (FMLA) and  is to be paid  if he is taking care for children under 18 whose school or child care is closed because of COVID-19.

Hourly rate

You will have to pay your employee the hourly rate that you’ve paid them over the last 6 months in most of the cases. However, under the Fair Labor Standards Act (FLSA), there are a few exceptions that are in line with the regular rate of pay.

You need to create an hourly rate for them, in case of employees on commission. The commission paid over the last 6 months divided by their hours worked needs to be equal to their hourly rate under the FFCRA.

Step 2: Enter the type of paid paid leave

Set up the paid leave type in your payroll once you know what type of paid leave type is applicable to your employee’s situation

Please Note: Do not know what kind of payroll service you own? You can find out the same by contacting QuickBooks support.

QuickBooks Payroll

  • In the Workers or Payroll menu select Employee.
  • Choose the employee that you’d like to add for paid leave.
  • Select the +Add additional pay types in the How much do I pay an employee section
  • Under the Families First Coronavirus Response Act section select the correct paid leave type as described in Step 1 and then click on Done.
  • In case of other Payroll.
  • In the Employees tab, choose the employee that you’d like to add for a paid leave.
  • Click on the Edit button, from the Pay section of the Employee Overview screen.
  • Select the correct paid leave type as described in Step 1 under the Families First Coronavirus Response Act section , in the What additional ways do you pay your Employee section
  • If there’s any Employer Paid Health Insurance Premium amount to be tracked on each check created for National Paid Sick Leave or FMLA Expansion for the employee select the employee and enter,  and then click on OK.
  • In case of, Full Service Payroll.
  • In the Employees tab, choose the employee you’d like to add paid leave to.
  • Click the Edit button, in the Pay section of the Employee Overview screen
  • Select the correct paid leave type in the Additional Pay section as described in Step 1 under the Families First Coronavirus Response Act section.
  • If there’s any Employer Paid Health Insurance Premium amount to be tracked on each check created for National Paid Sick Leave or FMLA Expansion for the employee select the employee and enter,  and then click on Save.

Step 3: Running payroll with the new pay type

You can run payroll and include the paid leave types on the paycheck once you have the paid leave types set up. By doing this you are allow your employee to get paid, and you can also track tax credits and make sure you get compensated.

  • QuickBooks  Payroll
  • In the Workers or Payroll menu select Run payroll.
  • Click on a pay schedule and then select Continue.
  • Click on Preview Payroll and then review everything
  • Select Submit Payroll.
  • Other Online Payroll.
  • Select the pay schedule from the Payday tab. The pay schedule that you are running payroll, if you have multiple.
  • Click on a pay schedule, and then click on Continue.
  • Now, you need to enter the hours for which the employee has worked and used for the paid leave in the fields.
  • Enter the hours the employee used, for National Paid Sick Leave and Family pay.
  • Enter the dollar amount if you don’t have a recurring amount, for the Family Medical Leave Act pay
  • Click on Create Paychecks
  • Check everything again, and then click on Approve Paychecks.
  • Full Service Payroll.
  • In the Home tab click on the pay schedule that you are running payroll for in case you have multiple payrolls.
  • Click on Enter Payday Info.
  • In the fields, enter the hours the employee had worked and used for the paid leave.
  • Enter the hours the employee used, for National Paid Sick Leave and Family pay
  • Enter the dollar amount for the Family Medical Leave Act pay if you don’t have a recurring amount.
  • Click on the Preview Payroll.
  • Check everything again, and then click on Submit Payroll.

Step 4: Now, you need to review the effects on taxes

  • You can review your payroll reports to see how many hours you’ve used in these tax credits to make sure that you’ve been tracking the leave correctly. Your liability will have tax credits applied automatically.
  • Payroll details report Payroll Summary report Tax Liability report includes the reports that you will see in the tax credit.

To know more on how to pay your employees paid leave if your employee has been affected by COVID-19 with QuickBooks, call on our QuickBooks Customer Care. You can also write to us at support@qbooks247.com . For more information visit – www.qbooks247.com.

Post Author: qbooks247

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