COVID-19 Pay Types

The following are the COVID pay types that are supported in Zenefits. Note that you are responsible for calculating the amounts to be entered. The Zenefits system cannot do the COVID-19 calculations for you.

COVID-19 Time Off: used to record earnings paid to workers utilizing the COVID-19 Time Off requests in Zenefits.

  • COVID-19 Self Care - Time Off
  • COVID-19  Family Care - Time Off
  • COVID-19 EFMLA

The COVID-19 Self Care - Time Off and COVID-19 Family Care - Time Off types are available to be used in accordance with the Emergency Paid Sick Leave Act, or EPSLA. The COVID-19 EFMLA  type is to be used in accordance with the Emergency Family and Medical Leave Expansion Act, or EFMLEA. To understand the differences between when each of these types should be used, we recommend you look through this Department of Labor resource.

C19PayType1COVID-19 Tax Credits: used to record earnings paid to eligible workers to receive federal tax relief.

  • COVID-19 Employee Retention Expense
  • COVID-19 Qualified Health Plan Expense
  • COVID-19 FFCRA Tax Credit
C19PayType2

Note: Employers that wish to take advantage of any  COVID-19  tax relief credit options must make sure they understand:

  • Any limits to the amount of credits they can claim
  • Reporting requirements when claiming credits through payroll or other IRS Forms
  • Restrictions on an employer's ability to claim credits and seek other relief options

For more details see the IRS resources on Employee Retention Credit.

These pay types will assist in ensuring that leave is being taxed appropriately. Please note that the COVID-19 pay types do not have built in limits. It is your responsibility as the employer to track any limits in accordance with the FFCRA.

  1. Open the Payroll app from your Zenefits dashboard.
  2. Go to the Pay Runs tab from the top navigation bar.
  3. Select a draft run.
  4. Click Edit for a worker who is utilizing the COVID-19 leave.
  5. In the Earnings section, Add Earning.
  6. Select from the COVID-19 Earnings categories and Add.
  7. Next to the COVID-19 Earnings category in their pay stub, you can enter in the amount of wages the worker will be receiving.
    If you need guidance on the amount of earnings to include, the Department of Labor has provided these resources on the Calculation of Pay.
  8. Save.
  1. Open the Payroll app from your Zenefits dashboard.
  2. Go to the Pay Runs tab from the top navigation bar.
  3. Select a draft run.
  4. Click Edit next to one of the workers listed.
  5. In the Contribution section, +Add Contribution.
    Note that will not affect your worker’s pay stub at all. It is simply the Zenefits system way of tracking how your company avails the credits.
  6. Select from the COVID-19 Credits and Add.
  7. Next to the selected COVID-19 credit, enter in the amount of the wages/health plan expenses you’ll be claiming.
    If you need guidance on the amount of wages or health plan expenses you can avail, the IRS has provided these resources on Employee Retention and Qualified Health Plan Expense data.
  8. The amount you enter in the Contribution will be used to calculate the credit amount, which is 50% of the qualified wages/expenses. The credit amount will be displayed on the next step, Approve Run.
  9. Save.

Note: Employers that wish to take advantage of any COVID-19 tax relief credit options must make sure they understand:

  • Any limits to the amount of credits they can claim
  • Reporting requirements when claiming credits through payroll or other IRS Forms
  • Restrictions on an employer's ability to claim credits and seek other relief options

For more details see the IRS resources on Employee Retention Credit.

You can see what amounts you ’ve entered in qualified wages and health expenses in the All In One report. The credits resulting from your entries are explained in these IRS resources on Qualified Leave, Qualified Retention and Qualified Health Plan Expense. It is each employer’s responsibility to ensure they are entering only the amounts that qualify for the corresponding credits.

If you ’ve entered an incorrect amount for any entries in payroll, you’ll need our support teams to help you correct the mistake. If the error impacts a tax period that has already been filed with the IRS, amendments to the impacted returns may also be required.

No, this will not affect your employee or be displayed to them at all. In order to expedite making the COVID-19 credits available to our customers, Zenefits relied on existing framework within our system. This means that in order to enter the credits for Employee Retention and Qualified Health Plan Expense, you'll need to use the Contribution section of an employee's pay stub that was previously reserved for employer contributions to the employee.

contribution section of pay stub


Note: Employers that wish to take advantage of any  COVID-19 tax relief credit options must make sure they understand:

  • Any limits to the amount of credits they can claim
  • Reporting requirements when claiming credits through payroll or other IRS Forms
  • Restrictions on an employer's ability to claim credits and seek other relief options

For more details see the IRS resources on Employee Retention Credit.

The entry options that Zenefits has provided allows employers to enter both qualified wages and health credits for any applicable second quarter payments and for any qualified employee retention or health expense payments made during the allowable March time frame.

catchup march types


Note: Employers that wish to take advantage of any COVID-19 tax relief credit options must make sure they understand:

  • Any limits to the amount of credits they can claim
  • Reporting requirements when claiming credits through payroll or other IRS Forms
  • Restrictions on an employer's ability to claim credits and seek other relief options

For more details see the IRS resources on Employee Retention Credit.

COVID-19 Codes in Box 14

The IRS requires employers to provide the amounts paid to employees as qualified sick leave wages or qualified family leave wages under the Families First Coronavirus Response Act.  To help employers meet this requirement, Zenefits will display these wages in Box 14 per the IRS recommendations for the three specific wage types:

  • C19 SLW511: Sick leave wages subject to the $511 per day limit because of care an employee required
  • C19 SLW200:  Sick leave wages subject to the $200 per day limit because of care an employee provided to another
  • C19 EFLW: Emergency family leave wages

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