FFCRA Paid Sick Leave US MapLast updated April 20, 2020

The current Family First Coronavirus Response Act legislation (FFCRA) and subsequent guidance issued from the Department of Labor and the IRS can be distilled to a few items that could impact users of Microsoft Dynamics® GP and Comprehensive Leave Manager. There are two parts to FFCRA: Paid Sick Leave Act & Emergency Family and Medical Leave Expansion Act which impact sick leave. This blog post will cover FFCRA Paid Sick Leave Act; click here to read our summary about Medical Leave Expansion Act (E-FMLA).

Below is a list of suggested best practices in terms of how to configure your Dynamics GP system to handle the paid sick leave requirements. For more information on what the laws include, who is covered, what is required and how to provide it, you can view this blog on the Integrity Data site or download a flyer on published guidance from DOL.

This post merely focuses on the steps needed to comply as quickly as possible and should be manageable whether you have the Integrity Data Comprehensive Leave Manager solution or not.

  •  Information on how to use Comprehensive Leave Manager is covered in Addendum A
  •  Information on Using Overtimes codes instead of linked pay codes in Addendum B

Every situation can be different, but in general employers need to:

  • Establish special sick time available to full and part time employees
  • Make this time available starting April 1, 2020
  • Allow employees to take this leave time in certain scenarios at certain rates
  • Track this for purposes of later reimbursement by IRS/Treasury

We have broken the process for Coronavirus Paid Sick Leave into these steps:

STEP 1 – Determine the number of Paid Sick Leave hours each employee should receive

STEP 2 – Setup Pay Codes in Dynamics GP to pay the employees for the Paid Sick Leave

STEP 3 – Payment to an employee for use of Paid Sick Leave

STEP 4 – Validating that employees have not exceeded the aggregate time allowed the daily limit on hours paid out

STEP 5 – Posting the paid time to the GL to setup for tracking tax credits

STEP 1 – Determine the number of leave hours an employee should receive

  • Full Time Employees – 80 Hours
  • Part Time Employees = Calculated. It is average number of hours in a two-week work period. Hence the following order:
  1. Normally Scheduled Hours for a two-week period (unless not known or changes regularly). In that case, #2 below.
  2. Average hours over last 6 months to get a daily average. Then use that average for leave allowance per day (unless not employed 6 months). In that case, #3 below.
  3. Amount of hours the employee was hired to work for a two-week period according to employment agreement (unless there is no agreement). In that case #4 below.
  4. Average hours per day the employee was scheduled to work over the entire term of his or her employment.

Calculation Options

Option 1: Dynamics GP SmartList

This step is done manually but we have included a SmartList .zip file that you can import to assist with determining how much Paid Sick Leave a Part Time employee is entitled to.

  • Filter by Type of Employment to evaluate part time employees.
  • Filter by Check Date to establish the period over which to look at part time hours.
  • Export the SmartList to Excel for data aggregation and calculations.

Option 2: SQL Query

We have included a SQL Query .zip file to download.

  • This script sums all hours for that an employee worked in the specified time period.
  • Fields: Employee ID, Last Name, First Name, Middle Name, Employment Type, Hours
  • Filtered on Payroll Code Type “Pay Code” and date range on Check Date.
  • This could be installed and SmartList created against it, or linked to from Excel.


Note:
If using Comprehensive Leave Manager, you can create this leave time in a special bucket. Then assign to the employees. See Addendum A.

STEP 2 – Set up Pay Codes in Dynamics GP which will be used to pay the employees for the special paid sick leave.

See additional notes regarding taxation in the GP Technical Update below.

Each Employee will have two new Pay Codes for the Paid Sick Leave:

  • for Sick time if they themselves are sick and
  • for Sick time used to care for a family member who is sick.

The settings below are recommended based on DOL guidance for establishing upper dollar limits on per-day usage.

  • Pay Code for Sick Leave to care for yourself
    • Pay Type is Sick
    • Equal to the Employees Regular Rate of Pay
    • Maximum of $63.87/hour (Daily max of $511 / 8 hours per day)
  • Pay Code for Sick Leave to care for a family member
    • Pay Type is also Sick
    • Equal to 2/3 of employee’s regular rate of pay
    • Maximum of $25/hour (Daily max of $200 / 8 hours per day)

For sake of this demonstration, we are using CVSELF and CVFAM as the pay codes to represent the sick leave for self, versus the sick leave for caring for family. They are of type “HOURLY” and are linked to the hourly code “HOUR4”. This prevents the special leave from affecting existing sick time, which would happen if you tried to use a pay type of “SICK”. The pay code link method avoids this problem and allows for the ratio needed for the self and family leave (100% and 67% respectively).

NOTE: THIS METHOD REQUIRES THE MICROSOFT HUMAN RESOURCES AND PAYROLL EXTENDED PACK. If you do not have this, see Addendum B for alternate method using Overtime Codes and contact your Partner for more information about the HR & Payroll Extended Pack.