COVID-19 paid sick leave - Calculation examples

Show expandable text

This article provides some examples that demonstrate how Accounting CS calculates the new COVID-19 special type pay items. The examples include situations in which more than the permitted number of paid leave hours are entered for employees, and more than one type of leave is included in a single payroll check. 

See Setting up COVID-19 paid sick leave for details about each type of paid leave and how to set up those payroll items for employees. 

 

In this example, the employee (Freda) is home sick with COVID-19 and is using COVID-19 paid leave.

  • Freda's standard pay rate is $10.00 per hour.
  • She is paid biweekly - 80 hours per two weeks.
  • She is using the COVID-19 Self care pay item, which:
    • uses the full pay rate
    • is limited to 80 hours
    • is capped at $63.875 per hour

Freda uses 80 hours of paid leave (COVID-19 self care) on one payroll check, and Accounting CS calculates her hours using her full pay rate.

Self care - full rate

 Liabilities generated for the payroll check

Because Freda is using a COVID-19 self care pay item, Accounting CS generates the liability credit based on the gross pay amount associated with that pay item, which is $800.00, plus the ERFICA-Med amount calculated on that sick leave, which is $11.60. Therefore,

  • The COVID-19 FIT credit is $811.60.
  • ERFICA-MED is $11.60
  • FICA-SS is $49.60
  • FIT is $41.10
  • FICA-Med is $11.60

Self care - liabilities
 

 

In this example, the employee (George) is using COVID-19 paid leave to take care of himself. 

  • George's standard pay rate is $10.00 per hour.
  • He is paid biweekly (80 hours per two weeks)
  • He is using the COVID-19 self care pay item, which:
    • uses the full pay rate
    • is limited to 80 hours
    • is capped at $63.875 per hour
  • He has used 40 hours of COVID-19 sick leave in the past.
  • George tries to use 45 hours of COVID-19 sick leave on his current check.  This is 5 hours over the 80 YTD hours permitted.

The following image shows the calculation in Accounting CS .

Self care - over 80 hour limit

Because George has only 40 hours of COVID-19 Self care available, Accounting CS displays an alert message stating that the number COVID-19 Self care hours used on the check exceeds George's available hours. The COVID-19 Self care hours are then automatically reduced to the 40 hours that he has available.

 Liabilities generated for the payroll check

Because George is using the COVID-19 Self care pay item, Accounting CS generates the liability credit based upon the gross pay associated with that pay item, which is $400.00, plus the ERFICA-Med amount calculated on that sick leave, which is $5.80.  Note that in this payroll check, the ERFICA-MED amount listed below is for the entire amount of the gross pay (including the $350.00 regular wages). The ERFICA-MED amount credited, though, is based only on the $400.00 COVID-19 sick leave amount.

  • The COVID-19 FIT credit is $405.80
  • ERFICA-SS is $21.70
  • ERFICA-MED is $10.88 (for the entire gross pay amount.)
  • ERFICA-MED is $5.80 (for only the $400 COVID-19 Self care gross pay amount) 
  • FICA-SS is $46.50
  • FIT is $35.58
  • FICA-MED is $10.88 

Self care liabilities

 

In this example, the employee (Barbara) is using COVID-19 paid leave to take care of her daughter, who has COVID-19. 

  • Barbara's standard pay rate is $40.00 per hour.
  • She is paid biweekly (80 hours per two weeks)
  • She is using the COVID-19 Other care pay item, which:
    • uses 2/3 of her pay rate
    • is limited to 80 hours
    • is capped at $25.00 per hour
  • She has used 40 hours of COVID-19 sick leave in the past.
  • Barbara tries to use 45 hours of COVID-19 sick leave on her current payroll check.  This is 5 hours over the 80 YTD hours permitted.

The following image shows the calculation in Accounting CS .

 Other care over 80 hour limit

  • Because Barbara is using the COVID-19 Other care pay item, Accounting CS calculates the hourly rate at 2/3 of her standard pay rate (40.00 x 2/3 = 26.6667).
  • Because of the pay item's hourly rate cap, Accounting CS limited her hourly rate to $25.00 per hour.
  • Because the 45 hours she's trying to use exceeds the 80 hour limit, Accounting CS displays an alert message stating that the number COVID-19 Other care hours used on Barbara's check exceed her available hours. The COVID-19 Other care hours are then automatically reduced to the 40 hours that she has available.

 Liabilities generated for the payroll check

Because Barbara is using the COVID-19 Other care pay item, Accounting CS generates the liability credit based upon the gross pay associated with that pay item, which is $1000.00, plus the ERFICA-Med amount calculated on that sick leave, which is $14.50.

  • The COVID-19 FIT credit is $1,014.50
  • ERFICA-MED is 14.50
  • FICA-SS is $62.00
  • FIT is $122.96
  • FICA-MED is $14.50

Other care over 80 - liabilities

 

In this example, an employee (Gary) is using COVID-19 paid leave, first when he was sick with COVID-19, and then to take care of his wife who also became ill. 

  • Gary's standard pay rate is $20.00 per hour.
  • He is paid biweekly, 80 hours per two weeks.
  • He has already used 40 hours of Self care paid leave on a prior payroll check (leaving 40 hours of Self or Other care available).
  • He is using the COVID-19 Self care pay item, which:
    • uses the full pay rate
    • is limited to 80 hours (in combination with Other care hours)
  • He is also using the COVID-19 Other care pay item, which:
    • uses 2/3 of his pay rate
    • is limited to 80 hours (in combination with Self care hours)
  • Gary tries to use 25 hours of COVID-19 Self care and 20 hours of COVID-19 Other care sick leave on the current check. This is 5 more hours than he has available.

The following image shows the calculation in Accounting CS .

Self and Other care

  • Because Gary was using the COVID-19 Other care pay item, Accounting CS calculated his hourly rate for that pay item at 2/3 of his standard pay rate ($20.00 x 2/3 = $13.33337). His COVID-19 Self care hours are calculated using his standard pay rate.
  • Because the combined number of Self care and Other care hours take him over the 80 hour limit, Accounting CS displays an alert message stating that the number COVID-19 Self care hours used on Gary's check exceed his available hours. Note that Accounting CS automatically reduces the first of the two COVID-19 pay items listed in the Pay grid (the Self care item). To reduce the Other care pay item instead, change the Pay grid sort order using the Payroll Item Sort Order dialog.

Liabilities generated for the payroll check

Because Gary is using both the COVID-19 Self care pay item and the COVID-19 other care pay item, Accounting CS generates the liability credit based upon the gross pay associated with both pay items plus the ERFICA-MED amount calculated on that sick leave. 

  • Gary's COVID-19 Self care gross pay is $400.00, generating a credit of ($400.00).
  • His COVID-19 Other care gross pay is $266.67, generating a credit of ($266.67)
  • ERFICA-MED is $9.67, generating a credit of (9.67), bringing the total credit amount to ($676.34)
  • FICA-SS is $41.33
  • FIT is $18.97
  • FICA-MED is $9.67

Self and Other care liabilities

 

An employee, Gordon, can't work because he has lost access to childcare (due to COVID-19), so he is using the COVID-19 Extended child care pay item.

  • Gordon's standard pay rate is $85,000.00 a year (using a Salary – hours sensitive pay item).
  • He is using the COVID-19 Extended Child Care pay item, which:
    • uses 2/3 of his pay rate
    • is limited to 400 hours
    • is capped at $25.00 per hour
  • He is paid biweekly and has already used 380 hours of COVID-19 extended child care sick leave.
  • Gordon is trying to use 25 hours of COVID-19 Extended Child Care on the current check.
  • This is 5 hours over the 400 YTD hours permitted.

The following image shows the calculation in Accounting CS .

Extended child care

  • Because the employee was using the COVID-19 Extended Child Care pay item, Accounting CS converted Gordon's annual salary to an hourly rate ($40.87) and then calculated that hourly rate at 2/3 of that rate ($40.87 x 2/3 = $27.25).
  • Because of the pay item's hourly rate cap, Accounting CS limited his hourly rate to $25.00 per hour.
  • Because the 25 hours he's trying to use take him over the 400 hour limit, Accounting CS displays an alert message stating that the COVID-19 Extended Child Care hours used on Gordon's check exceed his available hours. The COVID-19 Extended Child Care hours are then automatically reduced to the 20 hours that he has available.

Liabilities generated for the payroll check

Because Gordon is using the COVID-19 Extended Child Care pay item, Accounting CS generates the liability credit based upon the gross pay associated with that pay item, which is $500.00, plus the ERFICA-Med amount calculated on that sick leave, which is $7.25.  Note that in this payroll check, the ERFICA-MED amount listed below is for the entire amount of the gross pay (including the $612.98 salary wages). The ERFICA-MED amount credited, though, is based only on the $500.00 COVID-19 sick leave amount.

  • The COVID-19 FIT credit is $507.25
  • ERFICA-SS is $38.00
  • ERFICA-MED is $16.14 (for the entire gross pay amount.)
  • ERFICA-MED is $7.25 (for only the $500 COVID-19 Extended Child Care gross pay amount) 
  • FICA-SS is $69.00
  • FIT is $147.82
  • FICA-MED is $16.14 

Extended child care liabilities

Was this article helpful?

Thank you for the feedback!