This chapter contains the following topics:
Section 20.1, "Understanding Families First Coronavirus Response Act"
Section 20.2, "Generating the Audit Report for Federal Sick and FMLA Timecards"
To comply with the Families First Coronavirus Response Act (FFCRA) legislation passed by the US government, employers are required to provide paid leave to all of its eligible employees. This new federal legislation mandates paid sick leave and paid FMLA leave for the first time. This legislation is effective April 1, 2020 through December 31, 2020. Employers under the below categories need to comply with the legislation:
Public employers; including some federal employers.
Private employers with less than 500 employees.
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Note: Private employers who have less than 50 employees may apply for an exemption if their business is jeopardized. |
The paid leaves covered by the FFCRA are described in the Emergency Paid Sick Leave Act and the Emergency Paid Medical Leave Act.
The Emergency Paid Sick Leave is in addition to any existing sick leaves and benefits that the employees are already entitled to. This act applies to all employees irrespective of their duration of employment. However, employers may apply for exceptions for an employee who is a healthcare provider or an emergency first responder.
Under this act, a full-time employee may take up to 80 hours of Emergency Paid Sick Leave. A part-time employee may take up to the amount of hours they work in an average two-week period. Employee eligibility for this leave requires one of these conditions to be met:
Employee needs to comply with a quarantine or an isolation order.
Employee is advised by a healthcare provider to self-quarantine.
Employee is experiencing symptoms and seeking a medical diagnosis.
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Note: The next three conditions pertain to an employee's family. |
The employee is caring for an individual under quarantine or medical self-quarantine.
Employee is caring for a child whose school or place of care has been closed or is unavailable.
Employee is experiencing any substantially similar condition to the above two conditions.
Employees taking leave under the Emergency Paid Sick Leave Act for any of the first three circumstances listed above, must be paid at their regular rate of pay up to a maximum of $511 per day or an aggregate of $5,110. However, employees taking leave under the Emergency Paid Sick Leave Act for any of the last three circumstances listed above must be paid at two thirds their regular rate of pay up to a maximum of $200 per day or an aggregate of $2,000. The regular rate of pay is defined by the Fair Labor Standards Act (FLSA) as the average pay over the last six months.
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Note: Rates of pay may be subject to federal, state, or local minimum wage requirements. For the first three reasons, normal minimum wage rate may apply, if this is greater than the regular rate of pay. For the last three reasons, two-thirds the applicable minimum wage may apply, if this is greater than two-thirds the regular rate of pay. |
The total sick leave taken under this act is limited to two weeks, for any combination of the six reasons stated above.
Emergency Paid Sick Leave expires on December 31, 2020, and the unused leaves in this category are not rolled over to the following year. You are not required to pay for unused leaves in the Emergency Paid Sick Leave category at the end of employment.
The pay for the leaves under this act are taxed as normal income, except that they are exempt from the employer portion of the Social Security tax. You may receive refundable tax credits to offset the cost of providing employees with Emergency Paid Sick Leave.
The Emergency Family and Medical Leave Expansion Act applies to all employees who have completed 30 days of employment. Employers may apply for exceptions for an employee who is a healthcare provider or an emergency first responder.
An employee who needs to care for a child under 18 because the child's school or place of care is either closed or is unavailable is eligible for this leave. Under this act, an eligible employee may take up to 12 weeks of Emergency Family Medical Leave. The first 10 days of this leave may be unpaid, but the employee must be allowed to use accrued paid leave to receive pay during the first 10 days. The employee may use Federal Sick Leave, accrued company sick leave, vacation or any other accrued leave. An employee who has already taken 12 weeks of leave under the already existing Family and Medical Leave Act (FMLA) within the last 12 months is not eligible for an additional 12 weeks of Emergency Family Medical Leave. If an employee has taken less than 12 weeks under FMLA, this will accordingly reduce the Emergency Family Medical Leave to have the total of leaves in these two categories to be a maximum of 12 weeks.
Compensation under this act is paid at two-thirds the normal rate of pay, up to a maximum of $200 per day and an aggregate of $10,000. Two-thirds the normal federal, state or local minimum wage requirement may apply, if the amount is greater than the normal rate of pay.
The employee does not need to take these leaves in a single block of time or in whole days. This leave ends at the end of hour limit exhaustion or when the qualifying need ends. The Emergency Family Medical Leave expires on December 31, 2020, and the unused leaves in this category are not rolled over to the following year. You are not required to pay unused leaves in the Emergency Family Medical Leave category at the end of employment.
Leave taken under this act is taxed as normal income, except that the wages are exempt from the employer portion of the Social Security tax.
This section provides overviews of the pay type setup for the FFCRA and the Federal Sick/FMLA Timecard Audit Report, lists prerequisites, and discusses how to:
Run the Federal Sick/FMLA Timecard Audit Report.
Set processing options for the Federal Sick/FMLA Timecard Audit Report (R053005).
To identify wages paid under the FFCRA and report on them separately, set up new pay types. These wages cannot be considered under the regular sick time. To set different limit requirements, you should set up a minimum of three new pay types:
Paid Sick Leave- Employee
Paid Sick Leave- Family
FMLA Expansion
In addition to these, you may want to consider setting up pay types to override rates and define minimums and maximums for the above categories, such as:
Paid Sick Leave- Employee- Minimum
Paid Sick Leave- Employee- Maximum
Paid Sick Leave- Family - Minimum
Paid Sick Leave- Family - Maximum
FMLA Expansion- Minimum
FMLA Expansion- Maximum
While setting up pay types using the PDBA Setup program (P059116), enter the maximum hour limit for a pay type in the Hours Limit field. Enter a value in Edit Flag to specify whether to display a warning or an error message when the Paid Sick Leave exceeds the maximum hour limit.
Use the Tax Exemptions form of the PDBA Setup program to set the value E in the Tax Type field for each of the pay types for Paid Sick Leave and FMLA Expansion to exempt them from the employer portion of the Social Security Tax.
While setting up the pay type for Paid Sick Leave - Employee, you enter the pay type multiplier as 1 because the employee is paid at the regular rate. For setting up the pay type for minimum and maximum, you can enter the respective values in the Amount or Rate field. For maximum, you need to specify 63.875 in the Amount or Rate field. Enter 80 for the maximum hour limit for the pay type in the Hours Limit field.
While setting up the pay type for Paid Sick Leave - Family, you may want to enter the pay type multiplier as .67 because it is paid at two-thirds of the regular pay.
For setting up the pay type for minimum and maximum, you can enter the respective values in the Amount or Rate field. For maximum, you need to enter 25 in the Amount or Rate field. This value takes priority over the value in the Pay Type Multiplier field, so you can leave the value in that field as 1.
Enter 80 as the maximum hour limit for the pay type in the Hours Limit field.
You may also want to set up benefit or accrual DBAs for tracking wage limits on the pay types that you create for Paid Sick Leave and Family Expansion. These DBAs are optional, but you can set them to help you record data for future use. After setting up a DBA, you can specify all three Paid Sick Leave pay types as the basis of calculation for this DBA. For example, for the Paid Sick Leave - Employee, enter the basis of calculation for Paid Sick Leave- Employee, Paid Sick Leave- Employee- Maximum, and Paid Sick Leave - Employee - Minimum, and so on for the other pay types.
The DBA tracking limit for different pay types under FFCRA are:
All three Paid Sick Leave - Employee pay types: $5110
All three Paid Sick Leave - Family pay types: $2000
All three FMLA - Expansion pay types: $10000.
While setting up this benefit, you must set up the Additional DBA rule to calculate for all employees.
You may also want to set up a benefit or accrual DBA to track and limit hours paid to an employee under FFCRA for both Paid Sick Leave - Employee and Paid Sick Leave - Family. This DBA is optional, but you can set it to track the total hours that an employee takes under either of the two categories to ensure the limit of 80 hours is not exceeded.
For this, the Method of Calculation should be H, and the Annual Limit should be set to 80. While setting up this benefit, you must set up the Additional DBA rule to calculate for all employees.
After setting up the DBA, you can specify all six Paid Sick Leave pay types as the basis of calculation for this DBA.
While setting up the pay type for FMLA - Expansion, you may want to specify the pay type multiplier as .67 because it is paid at two-thirds of the regular pay.
For setting up the pay type for the minimum and maximum limits, you can enter the respective values in the Amount or Rate field. For maximum, you need to enter 25 in the Amount or Rate field. This value takes priority over the value in the Pay Type Multiplier field, so you can leave the value in that field as 1.
Enter 400 as the maximum hour limit for the pay type in the Hours Limit field.
The Federal Sick/FMLA Timecard Audit report (R053005) assists in monitoring the wages paid under the FFCRA. Run this reports to list the wages paid for the Paid Sick Leave and FMLA Expansion pay types by employee. The report presents the following data:
Wages paid for the pay types by employee.
Audits for timecards that exceed daily time limits.
Audits for employee totals that exceed the aggregate hours limits.
Audits for employee totals that exceed the aggregate wage limits.
The Federal Sick/FMLA Timecard Audit report is based on timecards that are stored in the Employee Transactions Detail table (F06116) and the timecard history that is stored in the Employee Transaction History table (F0618). You can run this report after time entry as stand-alone, or after the pre-payroll step. The total wages paid amounts in this report help you to determine your allowable tax credits.
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Note: For the report to generate accurate error messages on the daily limits, you must enter daily timecards. |
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Note: You can also run this report with error messages set to less than 80 hours for your part-time employees. Oracle JD Edwards EnterpriseOne does not provide a provision for you to calculate the six month average hours per employee to calculate eligibility hours for part-time employees. |
Before you complete the tasks in this section:
Verify that you have set up the pay types for Paid Sick Leave and FMLA Expansion.
See JD Edwards EnterpriseOne Applications Human Capital Management Self-Service Implementation Guide.
Employees have entered timecards daily.
See JD Edwards EnterpriseOne Applications Time and Labor Implementation Guide.
Enter BV in the Fast Path and run R053005 from Batch Versions.
Alternately, run this report from the Payroll Workbench (P07210) for step codes 1 (Pre-Payroll), 2 (Print Checks/Auto Deposit Advices), 3 (Journal Entries), and 4 (Reports).
These processing options enable you to specify the processing period and the pay type details for generating the audit report.
Specify the payroll tax year for which you want to process employee history for an entire year. When you enter a value in this processing option, the system disregards any values in the Date From and Date Thru processing options. To use those options to specify a partial year, you must leave this processing option blank. When you leave all three of these processing options blank, the report does not produce any output.
Specify the beginning date for a valid range of dates to retrieve timecard detail history. Use this processing option in conjunction with the Partial Year Thru Date processing option to process employee history for a partial year. You cannot specify a date range that is greater than one payroll tax year. If you do not specify a partial year using this processing option and the Partial Year Thru Date processing option, you must enter a value in the Payroll Tax Year processing option, otherwise the report does not produce any output.
Specify the ending date for a valid range of dates to retrieve timecard detail history. Use this option in conjunction with the Partial Year From Date processing option to process employee history for a partial year. You cannot specify a date range that is greater than one payroll tax year. If you do not specify a partial year using this processing option and the Partial Year From Date processing option, you must enter a value in the Payroll Tax Year processing option, otherwise the report does not produce any output.
Specify which date will be used for retrieving Timecard Detail History (F0618) records. The date of the timecard must either fall within the Payroll Tax Year, or fall within the Partial Year From Date and Partial Year Thru Date range in order for the timecard's hours and gross pay to be included in the beginning balance of the Hours Paid and Gross Wages shown on the report and, therefore, be included in the YTD balances of each pay type. Values are:
Blank: Date worked
1: Check Date
2: Pay Period Ending Date
Enter the applicable minimum hourly rate. This may be the federal minimum wage or any state or local minimum wage requirement, whichever is greater.
Enter the applicable Hours Paid Limit for the combined number of hours of Paid Sick Leave-Employee and Paid Sick Leave-Family Care.
Enter a pay type to associate with Paid FMLA Expansion.
Enter the applicable Daily Gross Wages Limit for the type of Paid FMLA Expansion.
Enter the applicable Aggregate Gross Wages Limit for the type of Paid FMLA Expansion.
Enter the applicable Hours Paid Limit for the type of Paid FMLA Expansion.
Enter pay types to associate with Paid Sick Leave. You can enter up to a maximum of three pay types to run the report.
Enter the applicable Daily Gross Wages Limit for the type of Paid Sick Leave - Employee.
Enter the applicable Aggregate Gross Wages Limit for the type of Paid Sick Leave - Employee.
Enter pay types to associate with Paid Sick Leave. You can enter up to a maximum of three pay types to run the report.
Enter the applicable Daily Gross Wages Limit for the type of Paid Sick Leave - Family.
Enter the applicable Aggregate Gross Wages Limit for the type of Paid Sick Leave - Family.
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