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Families First Coronavirus Response Act (FFCRA/HR 6201) setup guidelines for Sage 300 US Payroll

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Summary

How to setup earnings codes and tax codes associated with HR 6201 in Sage 300 US Payroll (example provided).

Description

Cause

The effective date of the Families First Coronavirus Response Act (FFCRA) which includes the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act is April 1, 2020. This applies to leave taken between April 1, 2020 and December 31, 2020. For more information, please refer to the following link:

https://www.irs.gov/newsroom/treasury-irs-and-labor-announce-plan-to-implement-coronavirus-related-paid-leave-for-workers-and-tax-credits-for-small-and-midsize-businesses-to-swiftly-recover-the-cost-of-providing-coronavirus.

Note: Please review the latest updates from the IRS before applying the changes. As information and details become available, this article will be amended to include further information and suggestions on this new process. For any questions or clarification on tax reporting please check with your Tax or Payroll Professional.

UPDATES - JANUARY 2021

The HR133_PayrollUpdates_Jan2021 document attached contains a short summary of payroll related changes. Please refer to the signed bill, H.R. 133 DIVISION-BY-DIVISION SUMMARY OF COVID-19 RELIEF PROVISIONS for full details.

Summary of H.R. 133 Coronavirus Relief Provisions.pdf (house.gov)

UPDATES - APRIL 2021
Changes for Social Security Tax for Employer starting April 1st, 2021 and the date extension of FFCRA and CARES Act.
Refer to KB 109997 and the Q1 tax update for more details. Please confirm the correct local tax code names have been selected as suggested in the original setup document before activating the Q1 tax update. Otherwise you may not be able to perform required changes specified in KB 109997.

Resolution

Choose the Attachment based on which scenario applies to you:

Scenario 1: Setting up earning/tax/deduction/benefit codes for the Families First Coronavirus Response Act (FFCRA) & CARES Act Retention Credit from scratch.

  • Follow instructions on the 'Scenario 1 - FFCRA and CARES Act Setup for 300.pdf' attachment.

Scenario 2: If you have already set up earning/tax/deduction/benefit codes following the previous instructions provided by Sage on this KB article.

  • Follow instructions on the 'Scenario 2 - Adjustments to Previous Setup.pdf' attachment. (This PDF includes instructions for updating your settings and data.)

Scenario 3: If you set up your own custom earning/tax/deduction/benefit codes related to COVID-19 and would like to continue to use them.

  • Follow instructions on the 'Scenario 3 - Additional Setup if Used Custom Workaround.pdf' attachment. (This PDF includes instructions for reporting these custom codes on Form 941.)

Scenario 4: Setup earning/tax/deduction codes for W-2 reporting.

Scenario 5: Adjustments to separate deduction and tax for Qualified Sick Leave Wages ($511) and ($200).

DocLink: Changes for Social Security Tax for Employer starting April 1st, 2021 and the date extension of FFCRA and CARES Act.
Attachment: 226_20230425110550_Scenario 2 - Adjustments to Previous Setup.pdf
Attachment: 226_20230425110550_Scenario 3 - Additional Setup if Used Custom Workaround.pdf
Attachment: 226_20230425110550_Scenario 1 - FFCRA and CARES Act Setup for 300.pdf
Attachment: 187_20230425110551_Scenario 4 - FFCRA Setup for W-2 Reporting.pdf
Attachment: 187_20230425110551_Scenario 5 - Adjustments after Q3 for W-2 Reporting.pdf
Attachment: 292_20230425110551_HR133_PayrollUpdates_Jan2021.pdf

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