Setting up New Hampshire paid family leave

There are 3 potential scenarios in accounting for the New Hampshire paid family leave (NHPFL):

1. 100% ER – The employer pays 100% of the premium. In this case, there are no premium deductions taken from employee paychecks. The premium amounts can be recorded in Sage 50 using General Journal entries.
2. 60/40 ER/EE – The employer pays 60% of the premium amount the employee pays 40%. Premium amounts are collected from the employee paycheck in the form of a payroll deduction.
3. 100% EE – The employee pays 100% of the premium there’s no employer contribution. In this scenario the employee pays the entire premium amount to be collected as a payroll deduction, the employer is required to remit the amount on behalf of the employee.

Setup Instructions

Only scenarios 2 & 3 outlined above will require the creation of new payroll deductions in Sage 50. Important note: Only the individual premium amount should be entered into the Special 3 field on the employee record, don’t record the total group premium amount in this field.

Scenario 1 - 100% ER

No deductions taken, no setup needed. Record premium amounts as General Journal entries. See How do I create a general journal entry?.

Scenario 2 – 60/40 ER/EE

1. Go to Maintain, Default Information, Employees and select the Employee Fields tab.
2. In the first blank Field Name column, enter PFL_EE.
3. Select a GL account and check the Calc box. In the Formula field drop-down, select the NHPFL_EE formula.
4. Click the Adjust button on this same line and ensure that the Use box is checked next to the Gross field name column.
5. Click OK to close the Adjust button window.
6. Click the Company Fields tab in the Employee Defaults screen.
7. In the first blank Field Name column, enter PFL_ER.
8. Select a GL account and check the Calc box. In the Formula field drop-down select the NHPFL_ER formula.
9. Click the Adjust button on this same line and ensure that the Use box is checked next to the Gross field name column.
10. Click OK to close the Adjust button window, and then click OK to close the Employee Defaults screen.
11. Go to Maintain, Employees/Sales Reps and select the desired employee record.
12. Click the Withholding Info tab and enter the annual premium amount in the Special 3 field Addl Withholding column.
13. Click Save to save the record.

Scenario 3 – 100% EE

1. Go to Maintain, Default Information, Employees and select the Employee Fields tab.
2. In the first blank Field Name column, enter PFL_EE.
3. Select a GL account and check the Calc box. In the Formula field drop-down, select the NHPFL_EE formula.
4. Click the Adjust button on this same line and ensure that the Use box is checked next to the Gross field name column.
5. Click OK to close the Adjust button window.
6. Go to Maintain, Employees/Sales Reps and select the desired employee record.
7. Click the Withholding Info tab and enter the annual premium amount in the Special 3 field Addl Withholding column.
8. Click Save to save the record.