How can I continue to pay my employees their full salary for Covid-19 related leave, while still having Rippling run the tax calculations?

While the FFRCA stipulates that certain leave types will be paid out at 2/3 of normal wages, it’s still possible to pay employees out in full and have Rippling run the tax calculations for the leave. To do this, employees will need to request leave through the two new Covid-19 leave types outlined in the FFRCA article, and Rippling will automatically apply the rules outlined in the FFRCA to payroll.

When you go to run payroll, the leave requests will automatically flow into Rippling’s payroll app under their corresponding “Covid-19 pay types” in Rippling – these pay types will be distinct from the standard “PTO Hours” pay type that leave typically flows through. This allows both Rippling to track the tax credits, and it makes it clear for you which leaves are taking place as part of FFCRA and which are not.

Because Rippling will then automatically apply FFRCA guidelines to the leaves taken (for example reducing salary to 67%), we’d recommend you create a new pay type (or pay rate if you wish to add hours) to help your employees maintain their full salary rate.

When you run payroll, you’d want to calculate the amount that the employee is forgoing as part of the FFRCA and add in the amount to make up for any lost earnings.