With the Families First Coronavirus Response Act or FFCRA, TempWorks has created paycodes that assist in the reporting of wage information as it relates COVID-19.
This article will provide information on the paycodes and how they translate to an employee's W-2.
Resources to Learn More:
- Learn more about FFCRA: https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave
- FFCRA Q&A: https://www.dol.gov/agencies/whd/pandemic/ffcra-questions
- Learn more about the IRS Coronavirus Tax Relief: https://www.irs.gov/coronavirus
- Learn more about the IRS Tax Credits: https://www.irs.gov/newsroom/treasury-irs-and-labor-announce-plan-to-implement-coronavirus-related-paid-leave-for-workers-and-tax-credits-for-small-and-midsize-businesses-to-swiftly-recover-the-cost-of-providing-coronavirus
- IRS Tax Credit Q&A: https://www.irs.gov/newsroom/covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-and-midsize-businesses-faqs
Coronavirus Related Pay Codes
The following pay codes have been added for use within your system:
- C19PSLSelf - Covid-19 Paid Sick Leave for Self
- From the U.S. Department of Labor, the qualifying reasons to use this pay code include:
- (1) Employee is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;
- (2) Employee has been advised by a health care provider to self-quarantine related to COVID-19;
- (3) Employee is experiencing COVID-19 symptoms and is seeking a medical diagnosis.
- From the U.S. Department of Labor, the qualifying reasons to use this pay code include:
- C19PSLOth - Covid-19 Paid Sick Leave Type 2 (Qualifying Reasons 4 and 6)
- From the U.S. Department of Labor, the qualifying reasons to use this pay code include:
- (4) Employee is caring for an individual subject to an order described in (1) or self-quarantine as described in (2);
- (6) Employee is experiencing any other substantially-similar condition specified by the Secretary of Health and Human Services, in consultation with the Secretaries of Labor and Treasury.
- From the U.S. Department of Labor, the qualifying reasons to use this pay code include:
- C19PFLChld - Covid-19 Expanded Paid Family Leave for Child Care (Qualifying Reason 5)
- From the U.S. Department of Labor, the qualifying reason to use this pay code is:
- (5) Employee is caring for a child whose school or place of care is closed (or child care provider is unavailable) for reasons related to COVID-19.
- From the U.S. Department of Labor, the qualifying reason to use this pay code is:
*Note* For more information on the Families First Coronavirus Response Act, please see the following article.
W-2 Reporting Statement From IRS
The following statement is from the IRS on how information related to FFCRA must be included on an employee's W-2:
“Included in Box 14, if applicable, are amounts paid to you as qualified sick leave wages or qualified family leave wages under the Families First Coronavirus Response Act. Specifically, up to three types of paid qualified sick leave wages or qualified family leave wages are reported in Box 14:
- Sick leave wages subject to the $511 per day limit because of care you required;
- Sick leave wages subject to the $200 per day limit because of care you provided to another;
- Emergency family leave wages.
If you have self-employment income in addition to wages paid by your employer, and you intend to claim any qualified sick leave or qualified family leave equivalent credits, you must report the qualified sick leave or qualified family leave wages on Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, included with your income tax return and reduce (but not below zero) any qualified sick leave or qualified family leave equivalent credits by the amount of these qualified leave wages. If you have self-employment income, you should refer to the instructions for your individual income tax return for more information.”
*Note* Please see the following article for the full guidance provided by the IRS.
FFCRA W-2 Reporting
The following table shows the breakdown on how the COVID-19 pay codes translate to an employee's W-2:
| Pay Code | IRS Description | W-2 Box | W-2 Label |
|---|---|---|---|
| C19PSLSelf | Sick leave wages that are subject to the $511 per day limit because of the care you required. | 14 | EPSLASelf |
| C19PSLOth | Sick leave wages that are subject to the $200 per day limit because of the care you provided to another. | 14 | EPSLAOth |
| C19PFLChld | Emergency family leave wages. | 14 | EFMLEA |
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