In response to the recent COVID-19 pandemic unfolding in the United States, the federal government recently implemented a stimulus plan, the Families First Coronavirus Response Act, which goes into effect April 1, 2020. The goal of the Act is to help reduce the economic impact of the outbreak for workers and their families. The key components of the law pertain to employers, as it provides additional sick leave for employees affected by the virus and/or caring for sick family members. There are two components of the law, the Emergency Paid Sick Leave Act (EPSLA) and the Emergency Family Medical Leave Act (EFLMA), that will be critical for Viewpoint ERP software users to properly track and report on.
More details on the Act, including eligibility, duration, and pay calculation, can be found here.
What Does This Mean for Vista & Spectrum Users?
Simply put, in order to correctly track and report COVID-19, new payroll controls should be created to manage your employees impacted by the pandemic. These controls need to be implemented before this affects businesses on April 1st. This will continue to impact payroll practices through the remainder of 2020. The Act is currently scheduled to expire December 31, 2020. Now is a crucial time for employers to understand how this Act will impact employees and what actions need to be taken with payroll systems to properly manage and track COVID-19 related data.
Additionally, employers that are required to provide paid sick leave and emergency paid family and medical leave, are entitled to refundable tax credits. Vista and Spectrum users should note that implementing these recommended changes will allow for proper reporting on this information.
The suddenness and urgency of this Act may seem overwhelming at the moment. It’s important to first familiarize yourself with the Act and how it will affect your business operations, as well as continue to monitor developments as they pertain to the current pandemic and new regulations.
Customizing Viewpoint to Your Needs
The Vista and Spectrum Consultants at Business Information Group are here to help. Consideration and configuration of these new payroll controls should be created and implemented within the next week. Our subject matter experts are available to assist you in your efforts to comply with this federal law.
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*This is not intended to be legal or HR advice