National Paid Leave Family- Quickbooks Desktop

Thank you for reaching out to us here on the Community page, @jiterbug.

I'm glad to help you today so you'll be able to set up your payroll items to track the National Paid Leave for Family accordingly.

First, you have to determine your employee's benefit and hourly rate and set up your liability and expense accounts for the paid leave. Then, set up your payroll items:

1. Click on the Employees menu, then Manage Payroll Items, then select New Payroll Item.
2. Select Custom Setup, then select Next.
3. Select Addition (Employee Loan, Mileage Reimbursement), then select Next.
4. Give your pay type a name, such as National Paid Leave EE or National Paid Leave Family, then select Next.
5. In the Expense account window, select COVID-19 Expenses (or whatever you named the expense account) and then select Next. 
6. In the Tax tracking type window, select the paid leave type, such as National Paid Leave EE or National Paid Leave Family based on what you are setting up as the tax tracking type.
7. In the Taxes window, select Next.
8. In the Calculate Based on Quantity window, select Calculate this item based on Quantity, and then select Next.
9. In the Default Rate and Limit window, set the rate for the following items:
   1.  The National Paid Leave Employee limit is $5110 and the National Paid Leave Family is $2000.
10. Ensure the Limit Type is Annual, restart each year, and then select Finish.

Once done setting up your payroll items, you have to set up the tax items to ensure you're tracking the tax credits. 

For additional reference about these actions, check out this article: How to track paid leave and sick time for the coronavirus.

Leave a comment below if you have any other questions. I'm a few clicks away to help. Have a good day!

There is no automatic calculation of 2/3 of the regular hourly rate similar to how time and a half or double time is calculated due to this being a non-hourly addition. This you will enter in each affected emplotyee's pay criteria and then enter quantity in the paycheck,. But since it is being treated as a "bonus" addition and not based on actual hours off it worries me is the loss of hours being recorded to determine FTE (full time equivalent) which will surely be needed for other things.

For 2021 there was an option to extend the payment to employee- we are extending it to 2021 so the set up on the limit should be "1-time" since the federal did not renew it for 2021.