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shannan1
Level 1

For Covid-19 in a state with stay at home order, what to classify employee hours under for payroll?

 
5 Comments 5
Nick_M
QuickBooks Team

For Covid-19 in a state with stay at home order, what to classify employee hours under for payroll?

Hello, shannan1.

 

At this time, we're working diligently to make sure that all states effected by Covid-19 will be able to operate their businesses effectively. While we don't currently have a specific way for you to classify your employees due to the virus, it is at the top of our list and will be updated in-product very soon.  I have a couple articles here that will help you stay informed on the latest information. 

 

Family First Coronavirus Response Act 

 

QuickBooks business resource and tax info

 

Should you need further guidance or assistance. You can reach out here. 

sandywickware
Level 1

For Covid-19 in a state with stay at home order, what to classify employee hours under for payroll?

I need the answer to this as well.  We have a major slow down and our employees are not coming in due to lack of work and we do have shelter in place orders.  I am trying to find out what pay type to use, paid time off?  We cannot provide their full pay, but can help them out some during this time.  Also, trying to figure out if this will withhold taxes or if it will be tax free.  I would rather they get the funds if possible, but do not want to violate any tax laws.  Please help, my payroll has to run today.  Nothing online provides information for this topic that I have found.  It all seems to only cover employees that are out sick or caring for children or someone else that is sick.  None of our employees are sick.

ZackE
QuickBooks Team

For Covid-19 in a state with stay at home order, what to classify employee hours under for payroll?

Hello, sandywickware. I understand these are difficult times, the Community will be here to help you find the answers to your questions.

Prior to paying your employees, you'll need to determine the leave type, and hourly rate. Under the Family First Coronavirus Response Act (FFCRA), there are three types:

  • Employee National Paid Sick Leave - The employee is sick and under quarantine with COVID-19.
  • Family National Paid Sick Leave - The worker is taking care of a family member who's sick or impacted.
  • Family Medical Leave Act Expansion Paid Leave - They're taking leave under the Family Medical Leave Act (FMLA) to care for children under eighteen.


For the rate, you'll usually pay them what they've received over the last six months. However, there are some exceptions, which are gone over in the US Department of Labor - Wage and Hour Division's Fact Sheet #56A.

Once you know the type and rate for each employee, you'll be ready to setup the paid leave in QuickBooks. Here's a detailed article that goes over how it's done: Pay employees under the Family First Coronavirus Response Act
I recommend following that article step-by-step, to assure this is configured properly in your books. It also contains a section that explains the effects on taxes.

I'll still be here to help, just reply to me here if you have any further questions.

stls
Level 1

For Covid-19 in a state with stay at home order, what to classify employee hours under for payroll?

We are a service company with essential customers in a "shelter in place" state. We are paying our employees 40 hrs/week even though they are averaging about 20 hrs/week. I just need to know how to track the paid time off without lumping it into Vacation or Sick time. Our employees don't really fall under any of the FFCRA types, they are able to work but the work just isn't there.

katherinejoyceO
QuickBooks Team

For Covid-19 in a state with stay at home order, what to classify employee hours under for payroll?

Thanks for joining this conversation, @stls. I understand the need to know more about how to track the paid time off without lumping it into Vacation or Sick time. 

 

I want to make sure that you'll be using the correct payroll workflows for changes happening due to this pandemic season. I highly recommend contacting your accountant so you'll be guided properly on this matter.

 

For future reference, read through this article: Taxable vs. nontaxable compensation. It includes the list of taxable and non-taxable compensation that can help you decide in handling this type of payroll. 

 

Just in case, you can check this article to help you add or Change Pay Types in Online Payroll.

 

Let me know if you need assistance with anything else. We're always here to help. 

 

 

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