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Covid Legislation and Kronos

Published
April 21, 2020
By
Brandi Clymer
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We are watching the Acts passed by congress and how they will impact payroll, tracking of time, time off, and taxes. Kronos is working on the Act’s impact on your systems.

March 20th

From Kronos:

Now that the 'Families First Coronavirus Response Act' has passed, we are diligently working to gather information to determine what changes are needed to the system to support this act.  Once we have a plan for the changes, the information will be provided through a Technical Advisory.

March 24th

We want to keep all of our users up to date with Kronos’ progress on working on the COVID legislation. Here is Kronos’s release about the Act:

Thank you all for your patience as we navigate this unprecedented time together. The final information is starting to move through the IRS and Treasury Department, and we are working diligently to update and determine the system changes needed to support this act. Our team continues to monitor all evolving changes through the Department of Labor webinars, partnering with industry leaders, and attending National Payroll Reporting Consortium calls (NPRC). We are making the necessary product changes.
Our goals are to provide you product updates and how-to materials needed to assist your organization in managing the required compliance specific to the new legislation. We are working to deliver this as quickly as possible.  We want to provide you with a thorough and complete package of information to guide you through the Timekeeping, Accruals, Leave, and Payroll changes you need to make in support of this act. We will keep you informed of changes through Technical Advisories.

March 27th

Attention Kronos customers, you will have access to new earning codes explicitly created for the new COVID-19 legislation. We are currently working on these earning codes and will have them deployed as soon as possible. These new earning codes will allow the system to accurately capture the earnings that are eligible for the credit against federal payroll tax liabilities.
We recommend that you wait for these new earning codes until the COVID-19 earning types have been communicated and deployed. Earning codes that are not created from the COVID-19 earning types will not calculate correctly and will not be reported properly.  
We are working diligently to get these new codes deployed as quickly as possible, and thank you for your patience.

We have a meeting with Kronos on Monday and will let you know if we find out anything further.

March 30th

We sat in on a webinar from Kronos today and got more details. The FFCRA is impacting three areas of Scissortail, and I will address each with recommendations below. Keep in mind the new regulations go into effect for time and pay on or after 4/1/2020.

Payroll

(requires Payroll module) – Earnings & Taxes – this option is not available for a couple more days, I will update you once the new codes are available with more detail.

Earning Codes – these are needed for the tax credits. You can create other earnings to track any non-COVID tax credit above the amounts below (ex. if you wanted to pay the employee their full rate of pay you would use another code for the 1/3 portion on Child Care):

  • COVID-19 Child Care 10 days – paid at 2/3 base comp for 10 days. Max $200/day, total max $2,000
  • COVID-19 Child Care 10 weeks - paid at 2/3 base comp for 10 weeks. Max $200/day, total max $10,000
  • COVID-19 Sick Pay 10 days – full base comp for 10 days, Max $511/day, total max $5,110

Time Off

(requires either Payroll or TLM module)

Kronos recommends setting up three new time off reasons and two new time-off plans.

Reasons:

  • Emergency Family and Medical Leave
  • Emergency Paid Sick Leave – Family Care (TLM only pay at .67 rate)
  • Emergency Paid Sick Leave – Self Care

Time Offs:

Emergency Paid Sick Leave – is reduced by the two reasons:  

  • Emergency Paid Sick Leave – Family Care
  • Emergency Paid Sick Leave – Self Care

Emergency Family and Medical Leave (create if do not have Leave of Absence module)

Leave: (requires Leave of Absence module) - Setup: Reasons, Profile

Please submit a contact us to let us know you would like to have our assistance in setting up any of these options (if you have the module).  

We will continue to monitor the Technical Advisories, and when the message changes, we will post updates here, notify our clients, post to social media.

Contact us if you have any questions.

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