I hope you're having a safe and productive week thus far. Tracking the Family Paid Medical Leave separate can be done by adding another payroll item.
Below are the instructions with how to do so:
In the top menu, select Lists and then choose Payroll Item List.
From the Payroll Item drop-down on the bottom left, click on New.
Pick Custom Setup, then New.
Depending on how you're employees are set up, go to Wage, Next, Annual Salary or Hourly Wages.
Select Next, Sick, or VacationPay and then click on Next.
Enter a name for the item and pick Next. Tip: If you're using time off, you can rename the item to TO.
Go to the expense account you want for the item, then Finish.
Given this unique situation that we find ourselves in during this challenging and unprecedented time, I suggest reaching out to an accountant as well to ensure that this is handled the best way that would fit your business. There are a lot of great Community members as well that may have dealt with this situation already.
Let me share an update about the COVID-19 and how to create a payroll item in QuickBooks.
COVID-19 is truly a global health issue affecting everyone and causing concern for you and our customers. The Families First Coronavirus Response Act (FFCRA) will be effective on April 1, 2020, and expires on December 31, 2020.
If you have fewer than 500 employees, you'll have access to three new provisions to help your business and your employees. However, if it's less than 50 employees you can get a waiver exempting your business.
Also, if you want to create a payroll item for the COVID-19 paid sick leave. Here's how:
Go to the List menu.
Select the Payroll Item List.
Click the Payroll Item drop-down arrow, then choose New.
Select EZ Setup in the Select setup method window, then click Next.
Choose the type of payroll item you want to create, then click Next.
In the Set up paid time off window, select Paid sick time off, then click Next.
Once done, you need to select the paid sick leave payroll item once you run payroll to generate an accurate pay for your employees.
I'm adding these resources that provide information about COVID-19: