Setting up New Hampshire paid family leave

How to set up paid family leave for New Hampshire in Sage 50 Accounting.

There are three 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. you can record the premium amounts in Sage 50 using General Journal entries.
2. 60/40 ER/EE – The employer pays 60% of the premium amount the employee pays 40%. You collect premium amounts 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 as a payroll deduction. The employer must remit the amount on behalf of the employee.

Setup Instructions

Only scenarios two and three outlined above will require the creation of new payroll deductions in Sage 50. Important note: Only enter the individual premium amount into the Special 3 field on the employee record. Don’t record the total group premium amount in this field.

Scenario One - 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 Two – 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 dropdown, 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 dropdown, 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 Three – 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 dropdown, 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.