As mentioned in our previous post of FFCRA Covid Leave W-2 Reporting, if you have paid out wages under the Federal act, you are required to include the Covid leave compensation, designated by the respective per day wage limit, on the W-2 or a statement included with the W-2.
The current version of Datatech software will print statements with the required information. If you issued Covid leave under the FFCRA, review the following instructions on printing these statements:
STEP 1
Review Your Covid Leave
Make sure you have correctly setup and identified your Covid leave pay to distinguish between the leave reasons and respective daily wage limits. To do this, review our FFCRA Covid Leave W-2 Reporting blog.
You may want to run individual Labor Analysis Reports for any Wage Code, Job ID and/or Cost Center ID that may have been used for Covid Leave. This way you can double check the Paid Leave Type Setup includes all applicable codes that have been used.
If you do not have your payroll distinguished between the leave reasons, you will need to compile your own list of employees and which reason should be applicable when printing W-2’s. You will be able to manually edit this information and print statements.
STEP 2
Generate Your 941 & 943 Forms
During the process of completing the 941 and 943 forms, the software generates the necessary Covid leave wages for W-2 printing. This information will be updated to the Year-to-Date Archive records.
STEP 3
Modify/Enter Leave Wages (If Needed)
If you don’t have your payroll records coded to distinguish between the leave types, you can edit this information by going to Payroll > Year End Tax Reporting > Edit YTD Archive File.
Use the lookup to select the year and then the Employee Acct # to edit. Once open, you can enter the respective wages for Covid Sick Leave Resons 1-3, 4-6, or Extended Family Leave.
Save any changes. The entries will be saved and ready for W-2 Statement printing.
Note: If you re-open the 2020 year and re-archive, these entries will be erased and have to be re-entered. Therefore, you may want to wait to make manually adjustments until you are ready for W-2 printing.
STEP 4
Print Sick Leave Statements
After printing W-2’s, click the Print Sick Leave button in the lower left corner of the Print W-2’s window.
The software will apply all of the same print settings that are on the selection window for W-2’s. If you have closed the window after printing W-2’s, be sure to make the same Print Order/Employee selections, so that you can more easily collate the statement with the W-2(s).
Click Yes to confirm your selections or No to change the settings.
When preparing to mail the W-2’s, you will need to include the statement in the envelope with the W-2.
We have had several customers ask us what to do if they do not have the reasons for leave recorded. We cannot advise you on this issue. You may wish to contact the IRS or your legal counsel for further instruction.
If you have any questions on updating Covid leave wages or printing the statements, please email our team at Support@DatatechAg.com.