We know you may have some questions during this time. We are listening and answering the frequently asked questions you are asking us. CTR Payroll Services is constantly updating our FAQs. Please consult official resources for more information. You can find links to official resources below.
- DOL FFCRA FAQs Read More »
- DOL FFCRA for Employers Read More »
- DOL Fact Sheet for Employees. Read More »
- Paycheck Protection Program FAQs Read More »
- IRS Tax Credits for COVID-19 Employee Retention FAQs Read More »
- IRS Tax Credits for COVID-19 Paid Leave FAQs Read More »
Keep Reading for more COVID-19 FAQs by Popular Topic
FFCRA Legislation, EFMLA, Paid Sick Leave (PSL)
No, this does not happen automatically. Typically, the employee needs to ask for the FMLA and then the earning code needs to be applied in iSolved.
For the purposes of Employees who may be exempted from Paid Sick Leave or Expanded Family and Medical Leave by their Employer under the FFCRA, a health care provider is anyone employed at any doctor’s office, hospital, health care center, clinic, post-secondary educational institution offering health care instruction, medical school, local health department or agency, nursing facility, retirement facility, nursing home, home health care provider, any facility that performs laboratory or medical testing, pharmacy, or any similar institution, Employer, or entity. This includes any permanent or temporary institution, facility, location, or site where medical services are provided that are similar to such institutions.
This definition includes any individual employed by an entity that contracts with any of these institutions described above to provide services or to maintain the operation of the facility where that individual’s services support the operation of the facility. This also includes anyone employed by any entity that provides medical services, produces medical products, or is otherwise involved in the making of COVID-19 related medical equipment, tests, drugs, vaccines, diagnostic vehicles, or treatments. This also includes any individual that the highest official of a State or territory, including the District of Columbia, determines is a health care provider necessary for that State’s or territory’s or the District of Columbia’s response to COVID-19.
To minimize the spread of the virus associated with COVID-19, the Department encourages employers to be judicious when using this definition to exempt health care providers from the provisions of the FFCRA. For example, an employer may decide to exempt these employees from leave for caring for a family member, but choose to provide them paid sick leave in the case of their own COVID-19 illness.
The DOL has clarified that employees on layoff are not entitled to any benefits, including PSL, under the FFCRA even if the employees have been laid off as a result of a federal, state, or local order before or after April 1, 2020. Please see responses to questions 23, 24 and 27 at: https://www.dol.gov/agencies/whd/pandemic/ffcra-questions It is possible that an employee could become eligible for PSL and extended FMLA leave after returning to work.
PT employees are entitled to PSL hours equivalent to the hours the employee works, on average, over a 2 week period. PT employees are also entitled to extended FMLA leave if they have worked at least 30 calendar days before requesting FMLA leave and the rate of pay is based on the number of hours the employee worked in the 6 month period before the leave or hours employee expected to work. Federal employees covered by Title II of the FMLA are covered by PSL but not expanded FMLA leave under FFCRA. https://www.dol.gov/agencies/whd/pandemic/ffcra-employee-paid-leave
The CARES Act and Paycheck Protection Loan
Yes! If you are paying employees, you should make the best of your investment and start to engage them and assign work to them.
We are not aware of any language this specific. The only information we have is the original legislation which does not get this granular. Based on the spirit of the legislation, we believe that the example above would not result in a reduction to the employer.
Yes you can reinstate wages. Those wages would be forgivable and they would prevent you from receiving a loan reduction in the event the wage reduction was greater than 25% when compared to Quarter 1 wages for the respective employees.
As long as the wages are paid within the 8 Week Loan Period, the wages would be counted toward your total gross wages for the period. You do not need to categorize them separately unless you would like to break them out separately for your own reporting and calculation purposes. We can easily create new earnings categories in iSolved with whatever naming convention you would like.
Neither the Act nor the SBA rules clarify that an average should be used but we agree with your analysis that the reduction calculation must be based on an average or annualization for the wages due to the varying time periods.
Other HR Topics & Workplace Wellness
A furlough continues employment but reduces scheduled hours or requires a period of unpaid leave. The thought process is that having all employees incur a bit of hardship is better than some losing their jobs completely. A layoff involves terminating employment during a period when no work is available. If you close down completely, but you intend to reopen in the relatively near future or have an expected reopening date—at which time you will rehire an employee, or all employees—this would be considered a temporary layoff.
NOTE: The language used when sending employees home for a period of time is less important than communicating your actual intent. Since temporary layoffs and furloughs are only used regularly in certain industries (usually seasonal), you should not assume that employees will know what they mean. Be sure to communicate your plans for the future, even if they feel quite uncertain or are only short-term.
Double-check your decision for possible unintentional bias. Be consistent. Get straight to the point. Don’t debate your decision with the employee. Be prepared to deal with the emotions that may arise.
You can reduce an employee’s rate of pay based on business or economic slowdown, provided that this is not done retroactively. For instance, if you give employees notice that their pay will change on the 10th, and your payroll period runs from the 1st through the 15th, make sure that their next check still reflects the higher rate of pay for the first 9 days of the payroll period.
Check with your benefits provider before you take action. Eligibility for benefits during a furlough or layoff will depend on the specifics of your plan. For health insurance, if an employee would lose their eligibility during a furlough (or layoff), then federal COBRA or state mini-COBRA would apply.
COVID-19 HR Support Resources
We understand that many payroll and HR administrators are being asked to interpret newly acted legislation and make crucial compliance decisions within a matter of days. To assist our customers, CTR is offering our HR Support Center to our customers free of charge.
This resource center offers legislative updates, sample forms, and additional guidance to assist you through this trying time. Use the links below to access our HR Resource Center or to receive your free login!