The California 2021 COVID-19 Supplemental Paid Sick Leave law requires Covid-19 paid sick leave amounts to be shown on check stubs. This must be separate from their regular paid sick leave.
For more information on the current Federal & State Covid Leave laws click here.
While the state leave is mandatory for employers with more than 25 employees, you may also receive federal wage & tax credits for the paid leave under the extension of the FFCRA.
To receive federal wage & tax credits, the leave must be taken in accordance with both laws.
- The FFCRA only applies to employers with under 500 employees at the time the Covid leave is taken.
- The ‘reason for leave’ has to be related between the two laws in order to both reduce the CA Covid leave and receive Federal wage & tax credits.
- The FFCRA has caps on the amount of wages you can receive wage & tax credits on. However, there is no cap on the wages under the state law.
Therefore, if you wish to receive the federal wage & tax credits, the reason for the leave must be recorded using the federal leave reasons in your Paid Leave Setup Table. These hours will also reduce your California Covid Sick Leave balances that print on employee check stubs.
How To Set Up Federal + CA Covid Paid Leave In Your Datatech Program
Many of our customers are at different points in the set up process. This depends on what was set up and paid under last years Covid-19 paid leave.
We have put together instructions to help you either start, edit, or finish your setup.
These instructions will also walk you through entering checks for Covid-19 paid leave once your setup is complete.
The California Supplemental Covid-19 Leave Balance will appear as “Covid Hours” below/after your normal sick leave balance, depending on which print settings you are using.
Please contact our support department with any questions regarding using your Datatech software.
The information presented in this article should not be construed as legal, accounting or tax advice. Our employees are not accountants or lawyers and they do not provide accounting, tax or legal advice. You should consult with a professional advisor familiar with your particular factual situation for advice concerning specific accounting, tax or legal matters before making any decisions.