Form W-2 - Ability to include COVID-19 Sick Pay and Family Leave in box 14 of W-2 (AGS-14892)

Benefit:

Reduce time and effort to comply with payroll regulatory reporting requirements relating to COVID-19 pay.

Background information:

If your company has employees who received wages that were part of the COVID-19 Sick and/or Childcare Act, you must upgrade to AGRIS 20.3.0 service update 2 (or higher) in order to print this on the W-2.

IRS Regulations state this must be printed on the W-2 Form (per IRS Notification 2020-54 at https://www.irs.gov/pub/irs-drop/n-20-54.pdf).

“Included in Box 14, if applicable, are amounts paid to you as qualified sick leave wages or qualified family leave wages under the Families First Coronavirus Response Act. Specifically, up to three types of paid qualified sick leave wages or qualified family leave wages are reported in Box 14:

Sick leave wages subject to the $511 per day limit because of care you required;
Sick leave wages subject to the $200 per day limit because of care you provided to another;
and Emergency family leave wages.”

Summary approach to using this:

How to handle this for 2020 W-2 Printing:

In AGRIS, to have this print, add it to the YTD Totals using three different deduction codes.
Two of the codes will hold the amounts of the sick wages.
The third code will be for a negative total amount that will zero out the changes to the YTD so that this does NOT affect the YTD totals reported on the W-2 form.

Deduction code for SICK PAY LIMITED TO $511 PER DAY - C19<$511
Deduction code for SICK PAY LIMITED TO $200 PER DAY - C19<$200
Deduction code to zero out paycheck affects - C19-ZERO

Step-by-step guide:

Set up a deduction code for the Covid-19 Personnel Sick pay Limited to $511. - C19<$511
PAY > Setup Information > Deduction Code
Deduct Before Fica? = Yes
FIT/FUTA Exempt? = B-exempt from Both
W-2 Code = 99 (Note that this is an new enhancement released with 20.3.0.2)
This 99-code is how we are directing this to print in Box 14 of the W-2
Calc Order = whatever the next number is in the list
Setup a deduction code for the Covid-19 Childcare Stick Pay limited to $200/day - C19<$200
PAY > Setup Information > Deduction Code
Deduct Before Fica? = YES
FIT/FUTA Exempt? = B-exempt from Both
W-2 Code = 99 (Note that this is an new enhancement released with 20.3.0.2)
This 99-code is how we are directing this to print in Box 14 of the W-2
Calc Order = whatever is available
Setup a deduction code for the Covid-19 Zero-Out - C19-ZERO
PAY > Setup Information > Deduction Code
Deduct Before Fica? = YES
FIT/FUTA Exempt? = B-exempt from Both
W-2 Code = leave blank
Calc Order = whatever is available
State Code Setup
(if this needs to be added to state income, repeat steps above on state tax setup.)
pay > Payroll Tax Tables > State/Local Tax Table
Verify or add a new state tax table ZZ - called YR. END ADJUSTMENT
Payroll > Payroll Tax Tables > State/Local Tax Tables
Give the code a name that represents their location since this description of ZZ does print on the W-2.
For Example, “Smithville-Yr End Adjustment”
Insert a new YTD balance for tax year with ZZ as the local code.
PAY > Employees > YTD Balance >
Note the existing year balance for the location – department – state codes
Insert button > Key year & the same location – department – state but add the ZZ as the local code.

NOTE: If editing an existing YTD record, key the exact year-location-department-state-local codes. You will be told that you cannot insert an existing year. Key an <E> in the box to the far right to open the balance record for editing. Only use this to fix the Adjustment Balance.
The net pay amount of most adjustments comes out to zero.
Use <Next> and <Back> to move between the tax & deductions screen.
Use OK to save the edits.
Go to the Deductions Screen 2.
Add the dollars paid in Covid-19 Personal Sick time ($511/day limit)
Add the dollars paid in the Covid-19 Childcare pay ($200/day limit)
Add both these fields together and enter the amount as a negative amount ( in the Covid-19 Zero out)
Net effect to YTD wages is zero.
Now there are 2-YTD lines for the employee.
These will be added together at time of W-2 Printing.
Printing of W-2 Forms will need to be flagged to combine the Local Codes so that our paycheck detail YTD Balance and our Edited YTD balance will be on same form.