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.
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.
COVID-19 Tax Credits: used to record earnings paid to eligible workers to receive federal tax relief.
Note: Employers that wish to take advantage of any COVID-19 tax relief credit options must make sure they understand:
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.
Note: Employers that wish to take advantage of any COVID-19 tax relief credit options must make sure they understand:
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.
Note: Employers that wish to take advantage of any COVID-19 tax relief credit options must make sure they understand:
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.
Note: Employers that wish to take advantage of any COVID-19 tax relief credit options must make sure they understand:
For more details see the IRS resources on Employee Retention Credit.
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:
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