# Basics of Families First Coronavirus Response Act Payroll In **Sage 300 CRE**

**Video Transcript Below**

Hello. This is Julie Pontell with Bangert Construction Software. Today we’re going to talk about how to set up Sage 300 payroll for the Families First Response Act. The Families First Coronavirus Response Act requires certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. The Department of Labor’s Wage and Hour Division administers and enforces the new law’s paid leave requirements. These provisions will apply from the effective date through December 31st, 2020. If you need more information about this act, you can go to dol.gov and look for FFCRA employee paid leave.

Okay, so there are three parts to setting up and running your payroll. First we’re going to cover what formula it is you need to set up. Next, we will cover the three pays that you need to set up. Then we’ll go through how to process a payroll. Lastly, we’ll talk about a few extra considerations. What I’m going through today is a basic setup for this Families First Act pay. Your company might differ a little bit because of unions or certified payrolls.

The first thing we need to do is set up our formulas. So we’ll go to tools, formulas. In the system, there is a payroll formula that will work for this, so we’ll go to payroll and I’m looking for vacation, sick hourly. Here it is right here, PR Vac/Sick Hourly Rate. I’m going to copy this formula and I’m just going to call it FFA 100% pay and say okay. So now it brings it over into my public formulas. Let’s take a look at what this formula is made up of. So it’s saying if they’re pay group equals salary, in this sample data, my pay groups are called Field, Office and Salary. Yours could be different. You could have a pay group that’s called Exec, and in that case then, you would want to change this pay group to Exec. So it’s whichever group you’re using to run salary pays is the one that you want right here.

Then it also is going to look up the amount from the employee check for regular pay, and in this data it’s called Sal, and that is set up on the pay. So your salary pay may also be called something different. I’m just going to go through here. Let’s see. So in this data set, it’s SAL is salary pay and REG is a regular pay. So it’s going to look for that salary. I’m set up for two weeks of salary pay, so it’s going to divide that by 80 hours to give me my hourly rate. If there’s not a salary pay, then it’s going to look up the regular pay. So again, your pay IDs might be something different so you’ll have to change this formula, and the way to do that is just to click on change and then you can just edit the formula to be what your salary pay group is called and what your salary pay is.

Some people have these numbered one and two. But for this dataset, I’m going to leave these at salary and Sal. Say okay. For the two-thirds pay, I’m going to use the same formula. I’m going to copy it again and call it FFA, 2/3 pay. Okay and then I change it and right here behind where I’ve got the 80, because this whole calculation is going to cut it down to the hourly rate and now I’m going to multiply that hourly rate so times .667, and right after the parentheses here I’ll enter another times .667. So this will take, if it’s a salary employee, it’ll take two-thirds of the hourly rate. If it’s a regular employee, it’ll take two-thirds of the hourly rate. Say okay. Close here, I can close out of these.

So the next thing that we have to do is set up our pays. So there are three pays there. There are three ways that a person can get paid through this act. The first is if the employee is sick, they get 100% of their pay up to $511. The second is if they have a family member that’s sick that they need to be off work to care for, they get paid two-thirds of their pay up to $200 a day. If they are off work because they need to provide childcare, they get two-thirds of their pay up to $200 a day. So we’ll set up all three IDs. This first one, I’m just going to call FFA-EE for employee. The pay type needs to be changed to other. Enter your expense account. The calculation method needs to be set to other units. I believe that this is exempt from employee FICA taxes if that’s not… You should check with your CPA to make sure that that is correct. I need to pull my formula in here. This is the 100% pay. Say okay and save.

Now I can set up the family leave. Family sick leave, I’m going to call it. Again, we’ll change the pay type to other. Enter my expense account. The calculation method, change to other. This formula is the two-thirds pay formula. Check exempt from FICA and say save. The last one is the child care and it is set up exactly the same as the family sick leave. Calculation method is other units. My formula. Check that it’s exempt from FICA and say save. So my three pays are set up now. So if I go here to set up and look at pays, now these three are set up in my list. The childcare leave, employee sick leave and family sick leave.

The way that I would process this is to go to tasks, enter checks. This will allow me to see it as I process it and make any changes that are necessary. One of the things we are recommending that you do is that you process these pays on a separate check. The act takes place, starts on April 2nd so that means that you’ll have a partial payroll for Monday through Wednesday. That might be regular sick leave and then you can run a second check for that employee that is his First Families sick leave.

So this employee, I’ve already got another check in the system for them, this pay period. So I’m going to do a second check here and it defaults to his regular pay. I’m just going to process to make sure that that’s working correctly. Now whether you check these boxes or leave them blank depends on whether you want to take deductions and fringes on this check. I’m not sure how that is meant to work. So you’ll again check with your accountant, read through the Families First Act. It may affect whether union dues and things like that are taken out. I’m just going to process it like it’s a regular weekly paycheck for this employee.

So I can see here that the units, it looked to the employee record and I can just show you on this employee. Actually, I’m going to show you on the next employee where this is. So if we go into pays, here is his regular pay ID and Regular. Some of your employees may not have an amount in here because they’re usually paid through a rate table. If that’s the case, you’ll need to enter a regular hourly amount there for them. Say accept here and save. So while I normally wouldn’t process two of these pay types on the same check, I just want to check to make sure my formulas are working. So I’m going to pick up the family sick leave here and put eight hours in. The reason I’m putting eight hours in is so that I can see if I’m going over the max amount for the day and I’m going to test that childcare formula right away on this check.

So now when I say process, I can see that it’s taking two-thirds of his regular rate and applying it to that eight units for that day. The limits for the employee’s sick leave are $511 a day. He’s at 280, we’re fine, but family sick leave has limit of 200 and childcare’s a limit of 200 so we’re okay on those. So, and his tax is calculated here except there is no FICA calculating for him because we marked that exempt. So I can accept this check.

Now let’s talk about how this works for a salaried employee. So this employee defaults to a salary, and I’m going to do the same thing here where I enter all three on his checks so we can make sure that it’s all calculating correctly. Say process here. Now, because his salary, it’s an automatic payroll. So once I calculate those 80 units for him, I’m going to make that a zero. Whether sick accrues and vacation accrues, that is up to you. So here we’ve got his taxes and it looks like everything is okay. There’s federal, state, state disability, these calculated based on the salary. So once I reprocess that Social Security and Medicare are gone. There’s no federal withholding calculating for him at this point.

So there’s a 401k and a medical expense calculating. Perhaps during this time people don’t want that to calculate. So you can just zero out those amounts, leave those zeros in there. They’ll act as a placeholder so that nothing calculates in there. I’m going to process one more time and say okay here. So see, now there’s no amounts here and the 401k fringe didn’t show up. So if I come here again, now I can look to see if I exceeded limits. So his regular pay, that would be $511 is the limit and it’s showing 300 so he’s okay there. On these two pays, he’s at $210 and the limit is $200. The easy way to do this is to just change this rates to $25. $25 will give you $200 a day. So we’re okay. I’m going to reprocess that check and say okay. Come back and check. Now I’m within all of the limits. I don’t have any 401k deductions coming out. There’s no 401k fringe over here. I can accept this check.

So that’s the best way to process. You may have several employees and find that it’s easier to enter the day by day in regular enter time screen. But then you should come in to enter checks in and be sure that they don’t go over for any of those individual days. So again, and there might be some changes for your company based on whether you have unions. I’m not sure which deductions will be subject to this sort of pay. Also, if you want the system to calculate and track ER expenses related to health insurance, that can be set up as a fringe and that’s sort of on a customer by customer basis. So if you need help with that, please feel free to give us a call and we’ll help you out. I hope this helps. Have a great day. Thank you.