Resources for the COVID-19 FFCRA and CARES Act – Updated for 2021
NOTE: Some of the links have been updated. Due to recent legislation, the window of eligibility for the tax credits has been extended. In addition, the formulas for calculating the tax credit and the maximum cap per quarter have risen. We have noted any links below that have been updated with new information. Review the new documentation so you have the most up to date information regarding these options.
As you’re busy developing and implementing your business continuity plans in response to current international health concerns, you’re keeping your people’s best interests top of mind; you can count on us to do the same. To give you a leg up, we’ve researched some of our customers’ most frequently asked questions regarding HCM processes during the COVID-19 pandemic and gathered some valuable resources to help support you through these uncertain times. Click on the hyperlinks for more information.
If you have questions about whether your business is covered by the FFCRA or CARES Act, including employee count and situations where you have multiple FEINs, refer to Internal Revenue Service (IRS), the U.S. Department of Labor (DOL) and your own legal counsel for guidance.
COVID-19: Best Practices and Tips:
- COVID-19 Tips
- COVD-19 Small Business Loans
- COVID-19 Business Assistance Programs
- COVID-19 Form 7200 Report
- American Rescue Plan Act 2021 – COBRA
The Families First Coronavirus Response Act (FFCRA) Configuration Guides and Tips:
These guides will assist you in managing the FFCRA program by configuring the PlanSource HCM system to track tax credits tied to employee wages and/or benefits. The information we have provided is for general reference, for the specific provisions, refer to the DOL website.
- Processing Leave of Absence Status
- Partial and/or Full Company Closure
- Reduction of Wages or Hours
- FFCRA Earning Codes Configuration Guide
- FFCRA Deduction Code Configuration Guide
Coronavirus Aid, Relief, and Economic Security (CARES) Act Configuration Guide and Tips:
These guides will assist you in managing the CARES Act by configuring the PlanSource HCM system to track tax credits tied to employee wages and/or benefits. The information we have provided is for general reference, for the specific provisions, refer to the IRS website.
- CARES ACT Deduction Code Configuration Guide – UPDATED
- Federal Coronavirus Relief Bill (CARES Act Tax Deferment)
- Employee Retention Credit (CARES Act) – UPDATED
- US Department of Education Student Loan Suspension (CARES Act)
Helpful Reporting to Support COVID-19 Programs:
To comply with the COVID-19 programs, you can now download the reports listed below. To learn how to add the report to your database please follow these instructions.
- COVID-19 Credits and Deferrals Report- Will capture and total the credit and deferral amounts for the COVID-19 program data. It will display the amounts on the individual employee level as well as a total at the bottom of each data section.
- Paycheck Protection Program Section 1102 of the CARES Act – Will provide all wages paid by FEIN by wage type. You can download this into excel and pivot the data include/exclude earning codes etc. You can run this for ANY date range you wish.
- Paycheck Protection Program – Will provide a list of employees for a given period range (suggested to run this for a full year) to show employees who were paid wages in excess of $100k during that period.
- Paycheck Protection Program – FTE’s by Pay Period– Generates an estimate of FTEs based on Salary counts and Hourly counts divided by a 40-hour work week per period.
- W-2 Check Data by Date Range – Allows reporting of W-2 type data across IRS years.
- Pre-Check Hours Lookback – To identify the hours worked for part-time employees who are eligible to receive paid time off due to the FFCRA. This report provides the hours worked for the open payroll, which are based on all earnings in the batch tables. IMPORTANT: Use this report in conjunction with the Pay History Hours Lookback report to understand the hours worked for part-time employees.
- Pay History Hours Lookback – To identify the hours worked for part-time employees who are eligible to receive paid time off due to the FFCRA. This report provides the hours worked for the last two weeks as well as the hours for the date range you select. Additionally, the report returns the hours worked based on all earnings in pay earning history. IMPORTANT: Use this report in conjunction with the Pre-Check Hours Lookback to understand the hours worked for part-time employees.
- Employee Retention Credit – UPDATED – This report is a sample designed to show from Pre check data, the Gross Wages (USSOCER/Qualified wages), ERC Amount ( which is Gross Wages *0.7 and also capped at 7000), Employer Deduction Amount (Based on Ded Tax Categories ‘ERC and ERCHB’)
- NOTE: This script has been updated to reflect the new calculations being .7 on wages and a cap of $7,000. If you have created a report in BI using the old script, update it or make a new one with the script in the hyperlink.
- Regular Rate of Pay Lookback – The pay rate method of “Higher of Regular or Minimum Wage” or “Higher of Pay Rate, Regular Rate, or Minimum Wage” configured on the FFCRA earning code will trigger the 6 month Regular Rate of Pay look back and will compare that to the applicable minimum wages. If either the ESLPY tax category or the EFMLP tax category are configured on the earnings, then the first time this earning code is paid the “highest” rate is saved for that employee at directed by the DOL. This is the rate that will be used moving forward when an FFCRA earning code is used. This report will allow you to determine what that rate of pay should be for any employee.
- PPP Loan Forgiveness Request – Payroll Costs and Number of Employees – This report includes payroll costs calculated using the number of months and employee headcount information to help determine eligibility, qualifying loan amount, and eligibility for the PPP loan forgiveness process. Payroll costs will include the annualization and proration of salary to determine the excess salary over $100,000
- PPP Loan Forgiveness – FTE Component – This report provides you with the FTE count for the Lookback period, and the Covered or the Alternate Covered period. Hour totals are also reported for the Safe Harbor dates, used for potential FTE reduction exemptions. *Updated Report Available for filing in 2021* 2nd Draw PPP Loan Forgiveness – FTE Component.
- PPP Loan Forgiveness – Wage Component Report – This report provides you with the wage amount for the Lookback period and either the Covered or the Alternate Covered period. Wage amounts are also reported for the Safe Harbor dates, used for potential wage reduction exemptions. *Updated Report Available for filing in 2021* 2nd Draw PPP Loan Forgiveness – Wage Component Report.