The quick onset of the COVID-19 Pandemic has resulted in organizations trying to react quickly to government and legislative mandates for all aspects of operations.  This reaction has caused many complications and logistical issues in many areas including adequate preparation and management of payroll. Personnel and payroll are critical to all businesses. The payroll process includes a multitude of factors including pay rates, employee classification, sick leave, paid time off, withholdings, taxing, benefit plans and other elements that impact workers. 

On March 18, 2020, President Trump signed the Families First Coronavirus Response Act into law, authorizing certain relief to employees and small and midsize businesses pertaining to the COVID-19 pandemic. On March 26, the Senate unanimously passed a 2 trillion dollar relief bill.  These bills include the CARES Act and the Payroll Protection Program.  The March 18 Act is intended to help the U.S. supply businesses and tax-exempt organizations with less than 500 employees with sufficient funds to provide employees with paid leave mandated taken in connection with the pandemic related to employees’ health condition or to provide care for family members. The funds are taken through tax credits.

In addition to legislative issues, companies must proactively manage all aspects of their payroll process from managing exempt and non-exempt personnel to layoffs and furloughs to paid benefits and taxing issues.  The payroll process is considered “inherently” at high risk for fraud.  In this time of crisis, companies will need to be pro-active with their internal controls surrounding this process.

Learning Objectives: 

• Review the background of FICA, Medicare and unemployment taxes.


• Identify the payroll impact of the Emergency Aid Package.


• Identify the impact of tax credits for the employer portion of Social Security and Medicare taxes.


• Understand the requirements for paid sick leave and child-care leave for employees.


• Understand the requirements for aid qualification.


• Identify payroll process areas to closely manage.


• Evaluate areas of the Emergency Aid Package impacting the payroll process.


• Continue to instill strong internal controls and preventative fraud measures. 


• Identify processes for expedited relief.