FFCRA/CARES 2020 Year-End Considerations

What things should employers consider in regards to the FFCRA and CARES Act tax credits that were introduced in 2020?

FFCRA Rollup Earnings
Fuse Workforce created new rollup earning codes to support FFCRA credits in 2020.
  • FFCRA Sick Leave 10 Days
  • FFCRA Family Leave 10 Days
  • FFCRA FMLA 10 Weeks

Using these codes after January 1st, 2021 will still accumulate FFCRA credits. If your company is no longer entitled to the credits these earning codes should no longer be used. For further information see: https://www.irs.gov/pub/irs-dft/p15--dft.pdf

NOTE: Some employees may be eligible for FFCRA earnings in 2020 that are not paid until after
1/1/2021.  Because the employer is not liable for FICA/OASDI tax on these earnings, you will need to keep autocorrect off for this tax for this employee for the remainder of the year or the system will add this tax amount back on the next paycheck.  This can be done by moving the tax setting with autocorrect “ON” forward to 1/1/2022. Alternatively, you could pay these FFCRA earnings before 1/1/2021.

 

Employee Retention Credits
Employers with fewer than 100 FT employees in 2019

Any payroll with a payroll date on or after January 1st, 2021 will no longer accumulate retention credits for qualified wages, even if this option is turned on for the company.

Employers with 100 or more FT employees in 2019
Fuse Workforce created a new rollup earning code to retention credits in 2020.

  • CARES EE Retention

Using this code after January 1st, 2021 will still accumulate retention credits. If your company is no longer entitled to the credits this earning code should no longer be used. For further information see: https://www.irs.gov/pub/irs-dft/p15--dft.pdf

Employer (ER) FICA Deferral
Any payroll with a payroll date on or after January 1st, 2021 will no longer defer the employer portion for FICA, even if this option is turned on for the company.