TRAXPayrollAdministrative General AdminCoronavirus Aid, Relief, and Economic Security Act (CARES)

Coronavirus Aid, Relief, and Economic Security Act (CARES)

The Coronavirus Aid, Relief, and Economic Security Act (CARES) was passed into law in the United States of America and is retroactive for small businesses and other eligible entities who were harmed by COVID-19 between February 15, 2020 and June 30, 2020. It is important for you to fully understand the new Act and how it will affect your organization. Click this link to a great resource for you to learn more about the CARES Act.

It is your responsibility to validate your own qualifications to claim the benefits of the CARES Act. TRAXPayroll provides a way for you to opt in and use this benefit, and to pay employees out in accordance with the laws around it. It is up to you to be compliant with government regulations.

Additional Pay Types

The following pay types have been added as Additional Pay options in TRAXPayroll:

  1. CARES Employee Retention Credit (Payable)
  2. CARES Employee Retention Credit (Non-Payable)

It is important to note you will not be able to void a previous paycheck if it contains a CARES pay type.

Validation on Step 2 of Run Payroll

Negative Amounts: Negative amounts will not be allowed to be entered for any of the pay types associated with CARES. If you do a attempt to enter a negative amount, you will see the error message below.

Cap Amount Requirements: On Step 2 of Run Payroll we will perform the following validation to ensure that you don’t exceed the cap limit on any individual employee. The cap amounts are as follows per employee.

  1. CARES Employee Retention Credit Payable: $10,000 at 50% or $5,000 credit in from 3/12/2020.
  2. CARES Employee Retention Credit Non-Payable: $10,000 at 50% or $5,000 credit in from 3/12/2020.

Cap Amount Error Messaging: If any of the employees in the payroll do exceed the cap amount, we will show the error message below.

What do I do if my Federal Credit Exceeds my Federal Liabilities?
  1. If your credit is greater than your liabilities, we will insert an offsetting tax adjustment fee for the amount of the extra credit.
  2. We will automatically withhold payments to the Federal Government for the additional credit amount. In other words, you will be carrying an extra amount of money on your tax account that will be retained and used to pay future taxes.
  3. Our Tax Admin team will fill out the Form 7200 on your behalf to enable you to receive a refund for the extra amount from the Federal Government.

If your Federal Credit exceeds your Federal Liabilities, you will see the following message in Step 3 of Run Payroll.

What if I want to Defer the Employer Social Security Tax as part of CARES?

There is an option if you are not using the CARES pay types to still choose to defer from your Employer Social Security Tax. If you'd like to opt to do this, you will need to fill out this form.

Reports

Payroll Register

If you are using the Social Security Deferral, the Payroll Register will show similar to the screenshot below.

Paycheck Protection Program Estimation

The information in this report can be useful in your Paycheck Protection Program loan application process. It is your responsibility to determine whether or not you qualify to apply for the PPP loan. You are responsible for all information submitted to the SBA or any lending institution to obtain a loan. It's important to review and confirm the accuracy of the information contained in this report, as well as all information you provide as part of your application. The information in this report is based on gross pay and has exclusions as noted below. Depending on your situation, it may not completely entail all data needed in order to accurately complete your application.

In addition to this report, you will need the 940 and 941 reports in the TRAXPayroll report library in order to successfully complete your application.

Click here to learn more about the Paycheck Protection Program.

The Paycheck Protection Program Report can be run for any custom date range using the date range filters at the top of the report. This report is only available in Excel format, not PDF.

This report includes the following information:

Rows:

  1. Month and Year
  2. Total of each column
  3. Average Payroll Cost (for all months included in the report)

Columns:

  1. Gross Pay $ Amount for the Month
  2. Employer Taxes State and Local $ Amount for the Month
  3. Employer Taxes SS/Med $ Amount for the Month
  4. Employer Benefit Cost for the Month
    • Employer paid amounts for group health care benefits and insurance premiums. Including the employers share of medical, dental, and vision premiums.
    • Employer paid short term disability, long term disability, 401K, and HSA contributions
  5. Payroll Cost (sum of all previous columns)
  6. # of Employees Paid in each month

This report excludes the following information:

  1. When an employee has over $100,000 in gross pay wages, in the month that they reach that amount, the excess wages will not be included in the report going forward. Additionally, the applicable taxes and deductions that correspond to the excess wages are excluded.
  2. It does not include Workers Compensation premiums.
  3. It does not include contract workers, just full-time and part-time employees.

If you joined TRAXPayroll after 1/31/2020, you will receive an error message letting you know you will not be able to see the data in this report. Please reach out to a Payroll Support Hero (1-866-872-9123 or payrollhelp@bamboohr.com) so we can assist you with getting the right information.

Employee Paystubs

If an employee has any of the CARES Pay Types used during a pay period, they will be shown on the paystub in TRAX. They will be able to view the total dollar amount allocated to that pay type that was paid to them during the pay period.

Note: If you are using the BambooHR integration, these pay types will show on the employee's paystub in BambooHR.

What's Next?

Do you want to learn more about how to manage changes with FFCRA in TRAXPayroll?